Berkeley Deal Analysis
Let's look at deal analysis for Berkeley, CA and for 
15 Buy 10 Nomads™ with 10% Higher Rents.
The analysis is based on The World's Greatest Real Estate Deal Analysis Spreadsheet™ (shown above)... a free spreadsheet download you can use to analyze your own deals.
Typical Berkeley, California Nomad™ Property with 10% Higher Rents
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Typical Berkeley, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$1,262,867
|
|
Purchase Price
|
|
$1,262,867
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$63,143
|
|
Closing Costs
|
1.000%
|
$12,629
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$360,987
|
|
Total Invested
|
|
$436,759
|
|
Mortgage
|
|
Mortgage Amount
|
|
$1,199,723.65
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$849.80
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$6,600
$6599.67
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$2,376
|
|
Property Taxes
|
0.852%
|
$10,760
|
|
Property Insurance
|
0.173%
|
$2,185
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
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|
Land Value
|
15.000%
|
$189,430
|
|
Property Type (C or R)
|
R
|
27.5
|
|
Effective Income Tax Rate
|
15.000%
|
|
| Property Value |
1 |
2 |
3 |
4 |
5 |
| ARV at End of Year |
$1,300,753 |
$1,339,776 |
$1,379,969 |
$1,421,368 |
$1,464,009 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$37,886 |
$39,023 |
$40,193 |
$41,399 |
$42,641 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$6,600 |
$6,798 |
$7,002 |
$7,212 |
$7,428 |
| Monthly Other Income Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Monthly Gross Potential Income |
$6,600 |
$6,798 |
$7,002 |
$7,212 |
$7,428 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$198 |
$204 |
$210 |
$216 |
$223 |
| Monthly Gross Operating Income |
$6,402 |
$6,594 |
$6,792 |
$6,995 |
$7,205 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$79,196 |
$81,572 |
$84,019 |
$86,540 |
$89,136 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$79,196 |
$81,572 |
$84,019 |
$86,540 |
$89,136 |
| Annual Vacancy Dollar |
$2,376 |
$2,447 |
$2,521 |
$2,596 |
$2,674 |
| Annual Gross Operating Income |
$76,820 |
$79,125 |
$81,499 |
$83,943 |
$86,462 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.852% |
0.852% |
0.852% |
0.852% |
0.852% |
| Property Taxes Dollar |
$10,760 |
$11,082 |
$11,415 |
$11,757 |
$12,110 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$2,185 |
$2,250 |
$2,318 |
$2,387 |
$2,459 |
| HOA Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| HOA Dues Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Utilities Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Utilities Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Other Expense 1 Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Other Expense 1 Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Other Expense 2 Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Other Expense 2 Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Maintenance Percent |
10.000% |
10.000% |
10.000% |
10.000% |
10.000% |
| Maintenance Dollar |
$7,682 |
$7,912 |
$8,150 |
$8,394 |
$8,646 |
| CapEx Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| CapEx Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Property Management Percent |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
| Property Management Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Operating Expenses |
$20,626 |
$21,245 |
$21,883 |
$22,539 |
$23,215 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$56,194 |
$57,880 |
$59,616 |
$61,404 |
$63,247 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$90,997 |
$90,997 |
$90,997 |
$90,997 |
$90,997 |
| Principal |
$13,410 |
$14,308 |
$15,266 |
$16,288 |
$17,379 |
| Interest |
$77,587 |
$76,689 |
$75,731 |
$74,709 |
$73,618 |
| Loan Balance at End of Year |
$1,186,314 |
$1,172,006 |
$1,156,740 |
$1,140,452 |
$1,123,073 |
| Loan-To-Value |
91.202% |
87.478% |
83.824% |
80.236% |
76.712% |
| Private Mortgage Insurance (PMI) Rate |
0.850% |
0.850% |
0.850% |
0.850% |
|
| Private Mortgage Insurance Dollar |
$10,198 |
$10,198 |
$10,198 |
$10,198 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$114,439 |
$167,769 |
$223,228 |
$280,916 |
$340,936 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$45,001 |
-$43,315 |
-$41,579 |
-$39,790 |
-$27,750 |
| Monhtly Cash Flow |
-$3,750 |
-$3,610 |
-$3,465 |
-$3,316 |
-$2,313 |
| Cash on Cash Return on Investment |
-0.103% |
-0.099% |
-0.095% |
-0.091% |
-0.064% |
| Cap Rate |
|
|
|
|
|
| DSCR |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Negative Cash Flow |
$0 |
$0 |
$0 |
$0 |
$0 |
| Cumulative Negative Cash Flow |
$0 |
$0 |
$0 |
$0 |
$0 |