Newark Deal Analysis
Let's look at deal analysis for Newark, NJ and for 
32 10 20% Down Rental Properties (no Owner-Occupant).
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 20% Down Payment Newark, New Jersey Rental Property
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Typical 20% Down Payment Newark, New Jersey Rental Property
|
|
Purchase Inputs
|
|
|
Percents
|
Dollars/#
|
|
ARV
|
|
$369,491
|
|
Purchase Price
|
|
$369,491
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
20.000%
|
$73,898
|
|
Closing Costs
|
1.000%
|
$3,695
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$111,861
|
|
Total Invested
|
|
$189,454
|
|
Mortgage
|
|
Mortgage Amount
|
|
$295,592.80
|
|
Mortgage Interest Rate
|
7.000%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0%
|
$0
|
|
Drop PMI LTV
|
0.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,255
$2255.40
|
|
Other Income
|
|
$0
|
|
Annual Expenses
|
|
Vacancy Rate
|
3.000%
|
$812
|
|
Property Taxes
|
2.581%
|
$9,537
|
|
Property Insurance
|
0.195%
|
$721
|
|
HOA Dues
|
|
$0
|
|
Utilities
|
|
$0
|
|
Other Expenses 1
|
|
$0
|
|
Other Expenses 2
|
|
$0
|
|
Maintenance
|
10.000%
|
|
|
CapEx
|
|
$0
|
|
Management
|
0.000%
|
|
|
Depreciation Details
|
|
Land Value
|
15.000%
|
$55,424
|
|
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 |
$380,576 |
$391,993 |
$403,753 |
$415,865 |
$428,341 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$11,085 |
$11,417 |
$11,760 |
$12,113 |
$12,476 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,255 |
$2,323 |
$2,393 |
$2,465 |
$2,538 |
| 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 |
$2,255 |
$2,323 |
$2,393 |
$2,465 |
$2,538 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$68 |
$70 |
$72 |
$74 |
$76 |
| Monthly Gross Operating Income |
$2,188 |
$2,253 |
$2,321 |
$2,391 |
$2,462 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$27,065 |
$27,877 |
$28,713 |
$29,574 |
$30,462 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$27,065 |
$27,877 |
$28,713 |
$29,574 |
$30,462 |
| Annual Vacancy Dollar |
$812 |
$836 |
$861 |
$887 |
$914 |
| Annual Gross Operating Income |
$26,253 |
$27,040 |
$27,852 |
$28,687 |
$29,548 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.581% |
2.581% |
2.581% |
2.581% |
2.581% |
| Property Taxes Dollar |
$9,537 |
$9,823 |
$10,117 |
$10,421 |
$10,733 |
| Insurance Percent |
0.195% |
0.195% |
0.195% |
0.195% |
0.195% |
| Insurance Dollar |
$721 |
$742 |
$764 |
$787 |
$811 |
| 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 |
$2,625 |
$2,704 |
$2,785 |
$2,869 |
$2,955 |
| 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 |
$12,882 |
$13,269 |
$13,667 |
$14,077 |
$14,499 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$13,371 |
$13,772 |
$14,185 |
$14,610 |
$15,049 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$23,599 |
$23,599 |
$23,599 |
$23,599 |
$23,599 |
| Principal |
$3,003 |
$3,220 |
$3,453 |
$3,702 |
$3,970 |
| Interest |
$20,596 |
$20,379 |
$20,147 |
$19,897 |
$19,629 |
| Loan Balance at End of Year |
$292,590 |
$289,370 |
$285,918 |
$282,216 |
$278,246 |
| Loan-To-Value |
76.881% |
73.820% |
70.815% |
67.862% |
64.959% |
| Private Mortgage Insurance (PMI) Rate |
0.000% |
0.000% |
0.000% |
0.000% |
0.000% |
| Private Mortgage Insurance Dollar |
$0 |
$0 |
$0 |
$0 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$87,986 |
$102,623 |
$117,835 |
$133,650 |
$150,095 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$10,229 |
-$9,827 |
-$9,414 |
-$8,989 |
-$8,550 |
| Monhtly Cash Flow |
-$852 |
-$819 |
-$785 |
-$749 |
-$713 |
| Cash on Cash Return on Investment |
-0.054% |
-0.052% |
-0.050% |
-0.047% |
-0.045% |
| 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 |