Madison Deal Analysis
Let's look at deal analysis for Madison, WI 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 Madison, Wisconsin Nomad™ Property with 10% Higher Rents
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Typical Madison, Wisconsin Nomad™ Property with 10% Higher Rents
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Purchase Inputs
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|
|
Percents
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Dollars/#
|
|
ARV
|
|
$343,765
|
|
Purchase Price
|
|
$343,765
|
|
Seller Concessions
|
—
|
$0
|
|
Down Payment
|
5.000%
|
$17,188
|
|
Closing Costs
|
1.000%
|
$3,438
|
|
Rent Ready Costs
|
|
$0
|
|
Cumulative Negative Cash Flow
|
|
$36,659
|
|
Total Invested
|
|
$57,285
|
|
Mortgage
|
|
Mortgage Amount
|
|
$326,576.75
|
|
Mortgage Interest Rate
|
6.500%
|
|
|
Loan Term
|
|
360
|
|
Private Mortgage Insurance
|
0.850%
|
$231.33
|
|
Drop PMI LTV
|
80.000%
|
|
|
Income
|
|
Monthly Rent
|
|
$2,720
$2720.03
|
|
Other Income
|
|
$0
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|
Annual Expenses
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|
Vacancy Rate
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3.000%
|
$979
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Property Taxes
|
2.137%
|
$7,346
|
|
Property Insurance
|
0.521%
|
$1,791
|
|
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%
|
$51,565
|
|
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 |
$354,078 |
$364,700 |
$375,641 |
$386,911 |
$398,518 |
| Appreciation Rate |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Appreciation Dollar |
$10,313 |
$10,622 |
$10,941 |
$11,269 |
$11,607 |
| Monthly Income |
1 |
2 |
3 |
4 |
5 |
| Rent Appreciation Rate |
|
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Rent |
$2,720 |
$2,802 |
$2,886 |
$2,972 |
$3,061 |
| 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 |
$2,720 |
$2,802 |
$2,886 |
$2,972 |
$3,061 |
| Vacancy Percent |
3.000% |
3.000% |
3.000% |
3.000% |
3.000% |
| Monthly Vacancy Dollar |
$82 |
$84 |
$87 |
$89 |
$92 |
| Monthly Gross Operating Income |
$2,638 |
$2,718 |
$2,799 |
$2,883 |
$2,970 |
| Annual Income |
1 |
2 |
3 |
4 |
5 |
| Annual Rent |
$32,640 |
$33,620 |
$34,628 |
$35,667 |
$36,737 |
| Annual Other Income |
$0 |
$0 |
$0 |
$0 |
$0 |
| Annual Gross Potential Income |
$32,640 |
$33,620 |
$34,628 |
$35,667 |
$36,737 |
| Annual Vacancy Dollar |
$979 |
$1,009 |
$1,039 |
$1,070 |
$1,102 |
| Annual Gross Operating Income |
$31,661 |
$32,611 |
$33,589 |
$34,597 |
$35,635 |
| Annual Expenses |
1 |
2 |
3 |
4 |
5 |
| Property Taxes Percent |
2.137% |
2.137% |
2.137% |
2.137% |
2.137% |
| Property Taxes Dollar |
$7,346 |
$7,567 |
$7,794 |
$8,027 |
$8,268 |
| Insurance Percent |
0.521% |
0.521% |
0.521% |
0.521% |
0.521% |
| Insurance Dollar |
$1,791 |
$1,845 |
$1,900 |
$1,957 |
$2,016 |
| 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 |
$3,166 |
$3,261 |
$3,359 |
$3,460 |
$3,563 |
| 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 |
$12,303 |
$12,672 |
$13,053 |
$13,444 |
$13,848 |
| Net Operating Income |
1 |
2 |
3 |
4 |
5 |
| Net Operating Income (NOI) |
$19,358 |
$19,938 |
$20,537 |
$21,153 |
$21,787 |
| Mortgage |
1 |
2 |
3 |
4 |
5 |
| Total Annual P&I Payments |
$24,770 |
$24,770 |
$24,770 |
$24,770 |
$24,770 |
| Principal |
$3,650 |
$3,895 |
$4,156 |
$4,434 |
$4,731 |
| Interest |
$21,120 |
$20,876 |
$20,615 |
$20,336 |
$20,039 |
| Loan Balance at End of Year |
$322,926 |
$319,032 |
$314,876 |
$310,442 |
$305,711 |
| 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 |
$2,776 |
$2,776 |
$2,776 |
$2,776 |
$0 |
| Equity |
1 |
2 |
3 |
4 |
5 |
| ARV - Loan Balance at End of Year |
$31,151 |
$45,669 |
$60,765 |
$76,468 |
$92,806 |
| Cash Flow |
1 |
2 |
3 |
4 |
5 |
| Annual Cash Flow |
-$8,188 |
-$7,608 |
-$7,010 |
-$6,393 |
-$2,983 |
| Monhtly Cash Flow |
-$682 |
-$634 |
-$584 |
-$533 |
-$249 |
| Cash on Cash Return on Investment |
-0.143% |
-0.133% |
-0.122% |
-0.112% |
-0.052% |
| 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 |