Deal Analyzer for Rentals

Property Address: 1500 Hemphill St. Charlotte, NC 28208

Date

INPUTS
Leverage: 75% Marginal Tax Bracket:
Appreciation: 5% Capital Gains Rate:
Interest Rate: 5.25% Value of the Land:
# of Units 10 Total Square Footage
Market Cap Rate 10.0% Cash on Cash Return 1st Year
COMPARATIVE ANALYSIS
Price Per Square Foot 45
Price Per Unit 40,000
Gross Rent Multiplier 0.15
Net Income Multiplier 10.00
Cap Rate 9.66%
Present Market Value 386,530 **Only Yellow numbers should be replaced in top section of the Analyzer. Yellow block s
below as well.
PURCHASE ANALYSIS
Purchase Price $400,000
Closing Costs 1% $4,000.00
Total Cost $404,000
First Mortgage 0.75 300000
Second Mortgage
Down Payment $104,000

FINANCING ANALYSIS

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Interest Rate (r ) 0.44% Payments Lef Year
Term in Months (n) 180 168 1
Amount Borrowed (PV) $ 300,000 156 2
Balloon Payment (FV) $ - 144 3
Monthly Payment (D) ($2,411.63) 132 4
120 5
Total Pay Down
FIRST YEAR OPERATING PROJECTION
Income/Expense Based on

Gross Scheduled Income/Net Rents

Vacancies 8%
Legal
Advertising
Cleaning
Miscellaneous
Insurance
Property Management % of Gross Rents 8.0%
Property Taxes
Water, Sewer, Electricity,Garbage 5%
Repairs and Maintenance 5%
TOTAL OPERATING EXPENSE
GROSS OPERATING INCOME
NET OPERATING INCOME
Mortgage
Cash Flow
Operating Expense Ratio
Depreciation (affects TI not CF) 430000 Basis 39
Mortgage Interest
Taxable Income

Cash Flow

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Tax Cost
Afer Tax Cash Flow
Return on Equity
FIVE YEAR OPERATING PROJECTION:
Income/Expense Escalator Year: 1 Year: 2 Year: 3
Rent 0.03 60000.00 61800.00 63654.00
Vacancies 0 4800.00 4800.00 4800.00
Advertising 0 0.00 0.00 0.00
Cleaning and Maintenance 0 0.00 0.00 0.00
Contingency 0 0.00 0.00 0.00
Insurance 0.03 2000.00 2060.00 2121.80
Property Mgt. 0 4416.00 4560.00 4708.32
Property Taxes 0.01 4131.00 4172.31 4214.03
Water, Sewer, Garbage 0 3000.00 3000.00 3000.00
Repairs and Maintenance 0.03 3000.00 3090.00 3182.70
TOTAL OPERATING EXPENSE 21347.00 21682.31 22026.85
NET OPERATING INCOME 38653.00 40117.69 41627.15
Debt Coverage Ratio 1.34 1.39 1.44
Break Even Ratio 0.91 0.92 0.92
Mortgage ($28,939.60) ($28,939.60) ($28,939.60)
CASH FLOW $9,713.40 $11,178.09 $12,687.55

Depreciation 11025.64 11025.64 11025.64

Pay Down on Mortgage 13,511.65 $14,238.33 $15,004.09
TAXABLE INCOME $12,199.41 $14,390.78 $16,666.00

Cash Flow $9,713.40 $11,178.09 $12,687.55

Tax Savings ($3,415.83) ($4,029.42) ($4,666.48)
AFTER TAX CASH FLOW $6,297.57 $7,148.67 $8,021.07
SALES ANALYSIS AFTER 5 YEARS
Purchase Price
Appreciation

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Loan Balance End of 5 years
Estimated Closing Costs 2%
Real Estate Commission 3%
Net Proceeds of Sale
Adjusted Basis

Actual Capital Gain 476,478.45 404000

Accumulated Depreciation
Taxable Capital Gain
Income Tax 28%
RATE OF RETURN AFTER 5 YEARS
Purchase PV Year: 1 Year: 2 Year: 3
D1 D2 D3
Down Payment -104000
Cash Flow $9,713.40 $11,178.09 $12,687.55
Net Proceeds of Sale
Cash Flow (before Tax) -104000 $9,713.40 $11,178.09 $12,687.55
Internal Rate of Return

Tax Savings/(Liability) ($3,415.83) ($4,029.42) ($4,666.48)

Capital Gains tax due
Cash Flow (after tax) -104000 $6,297.57 $7,148.67 $8,021.07
Internal Rate of Return
DCF OVER 5 YEARS

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8208

28%
28%
10%
8918
9%

ection of the Analyzer. Yellow block should be filled in

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Closing Loan Balance Amortization
$286,488.35 13,511.65
$272,250.02 $14,238.33
$257,245.93 $15,004.09
$241,434.89 $15,811.04
$224,773.50 $16,661.39
75,226.50

Monthly Annual

5000.00 60000
$400.00 4800
$0.0 0
$0.0 0
$0.0 0
$0.0 0
$166.7 2000
$368.0 4416
344.3 4131
$250.0 3000
$250.0 3000
1379 16,547
4,600 55,200
3,221 38,653
($2,411.63) ($28,939.60)
$809.45 $9,713.40
29.98%
918.80 11,025.64
15,427.95
$12,199.41

$9,713.40

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 ($3,415.83)
$6,297.57
6.06%

Year: 4 Year: 5
65563.62 67530.53
4800.00 4800.00
0.00 0.00
0.00 0.00
0.00 0.00
2185.45 2251.02
4861.09 5018.44
4256.17 4298.74
3000.00 3000.00
3278.18 3376.53
22380.90 22744.72
43182.72 44785.81
1.49 1.55
0.93 0.94
($28,939.60) ($28,939.60)
$14,243.12 $15,846.21

11025.64 11025.64
$15,811.04 $16,661.39
$19,028.52 $21,481.96

$14,243.12 $15,846.21
($5,327.99) ($6,014.95)
$8,915.14 $9,831.26
Appreciation Schedule
400,000.00 Yr1-2 Yr2-3 Yr3-4 Yr4-5
486,202.50 $ 420,000 $ 441,000 $ 463,050 $ 486,203

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 224,773.50
9,724.05
14,586.08
237,118.87
358,595.84

72,478.45
55,128.21
127,606.66
35,729.86

Year: 4 Year: 5
D4 D5

$14,243.12 $15,846.21
$ 237,119
$14,243.12 $252,965.08
27%

($5,327.99) ($6,014.95)
(35,729.86)
$8,915.14 $211,220.27
20%

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