Santa Monica Deal Analysis
Let's look at deal analysis for Santa Monica, 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 Santa Monica, California Nomad™ Property with 10% Higher Rents
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Typical Santa Monica, California Nomad™ Property with 10% Higher Rents
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Purchase Inputs
|
|
|
Percents
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Dollars/#
|
|
ARV
|
|
$2,390,000
|
|
Purchase Price
|
|
$2,390,000
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$119,500
|
|
Closing Costs
|
1.000%
|
$23,900
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$822,474
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|
Total Invested
|
|
$965,874
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|
Mortgage
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|
Mortgage Amount
|
|
$2,270,500
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|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$1,608.27
|
|
Drop PMI LTV
|
80.000%
|
|
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Income
|
|
Monthly Rent
|
|
$11,544
$11544.23
|
|
Other Income
|
|
$0
|
|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$4,156
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|
Property Taxes
|
0.691%
|
$16,515
|
|
Property Insurance
|
0.173%
|
$4,135
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
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Depreciation Details
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|
Land Value
|
15.000%
|
$358,500
|
|
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 |
$2,461,700 |
$2,535,551 |
$2,611,618 |
$2,689,966 |
$2,770,665 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$71,700 |
$73,851 |
$76,067 |
$78,349 |
$80,699 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$11,544 |
$11,891 |
$12,247 |
$12,615 |
$12,993 |
| 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 |
$11,544 |
$11,891 |
$12,247 |
$12,615 |
$12,993 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$346 |
$357 |
$367 |
$378 |
$390 |
| Monthly Gross Operating Income |
$11,198 |
$11,534 |
$11,880 |
$12,236 |
$12,603 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$138,531 |
$142,687 |
$146,967 |
$151,376 |
$155,918 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$138,531 |
$142,687 |
$146,967 |
$151,376 |
$155,918 |
| Annual Vacancy Dollar |
$4,156 |
$4,281 |
$4,409 |
$4,541 |
$4,678 |
| Annual Gross Operating Income |
$134,375 |
$138,406 |
$142,558 |
$146,835 |
$151,240 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
0.691% |
0.691% |
0.691% |
0.691% |
0.691% |
| Property Taxes Dollar |
$16,515 |
$17,010 |
$17,521 |
$18,046 |
$18,588 |
| Insurance Percent |
0.173% |
0.173% |
0.173% |
0.173% |
0.173% |
| Insurance Dollar |
$4,135 |
$4,259 |
$4,387 |
$4,518 |
$4,654 |
| 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 |
$13,437 |
$13,841 |
$14,256 |
$14,684 |
$15,124 |
| 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 |
$34,087 |
$35,110 |
$36,163 |
$37,248 |
$38,365 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$100,288 |
$103,296 |
$106,395 |
$109,587 |
$112,875 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$172,213 |
$172,213 |
$172,213 |
$172,213 |
$172,213 |
| Principal |
$25,378 |
$27,078 |
$28,891 |
$30,826 |
$32,890 |
| Interest |
$146,835 |
$145,136 |
$143,322 |
$141,387 |
$139,323 |
| Loan Balance at End of Year |
$2,245,122 |
$2,218,045 |
$2,189,154 |
$2,158,328 |
$2,125,438 |
| 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 |
$19,299 |
$19,299 |
$19,299 |
$19,299 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$216,578 |
$317,506 |
$422,464 |
$531,638 |
$645,227 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$91,225 |
-$88,216 |
-$85,117 |
-$81,925 |
-$59,338 |
| Monhtly Cash Flow |
-$7,602 |
-$7,351 |
-$7,093 |
-$6,827 |
-$4,945 |
| Cash on Cash Return on Investment |
-0.094% |
-0.091% |
-0.088% |
-0.085% |
-0.061% |
| 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 |