Property Information
IN ESCROW
Free PM for 1 year!
Memphis, TN 38127
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $14,400 | $14,832 | $15,277 | $15,735 | $16,207 | $16,694 | $17,194 | $17,710 | $18,241 | $18,789 |
| Vacancy Losses | ($1,152) | ($1,187) | ($1,222) | ($1,259) | ($1,297) | ($1,335) | ($1,376) | ($1,417) | ($1,459) | ($1,503) |
| Operating Income | $13,248 | $13,645 | $14,055 | $14,476 | $14,911 | $15,358 | $15,819 | $16,293 | $16,782 | $17,286 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($707) | ($729) | ($750) | ($773) | ($796) | ($820) | ($845) | ($870) | ($896) | ($923) |
| Insurance | ($590) | ($607) | ($625) | ($644) | ($663) | ($683) | ($704) | ($725) | ($747) | ($769) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($1,152) | ($1,187) | ($1,222) | ($1,259) | ($1,297) | ($1,335) | ($1,376) | ($1,417) | ($1,459) | ($1,503) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,449) | ($2,522) | ($2,598) | ($2,676) | ($2,756) | ($2,839) | ($2,924) | ($3,012) | ($3,102) | ($3,195) |
| Income Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Net Operating Income | $10,799 | $11,123 | $11,457 | $11,800 | $12,154 | $12,519 | $12,895 | $13,282 | $13,680 | $14,090 |
| - Mortgage Payments | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) | ($7,052) |
| = Cash Flow | $3,747 | $4,071 | $4,404 | $4,748 | $5,102 | $5,467 | $5,842 | $6,229 | $6,628 | $7,038 |
| + Principal Reduction | $900 | $965 | $1,035 | $1,109 | $1,189 | $1,275 | $1,367 | $1,466 | $1,572 | $1,685 |
| + Appreciation | $7,074 | $7,498 | $7,948 | $8,425 | $8,931 | $9,467 | $10,035 | $10,637 | $11,275 | $11,951 |
| = Gross Equity Income | $11,721 | $12,534 | $13,387 | $14,283 | $15,222 | $16,209 | $17,244 | $18,332 | $19,474 | $20,675 |
| Capitalization Rate | 8.6% | 8.4% | 8.2% | 7.9% | 7.7% | 7.5% | 7.3% | 7.1% | 6.9% | 6.7% |
| Cash on Cash Return | 11.8% | 12.8% | 13.8% | 14.9% | 16.0% | 17.2% | 18.4% | 19.6% | 20.8% | 22.1% |
| Return on Equity | 31.3% | 27.3% | 24.4% | 22.2% | 20.4% | 19.0% | 17.8% | 16.8% | 16.0% | 15.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $124,974 | $132,472 | $140,421 | $148,846 | $157,777 | $167,243 | $177,278 | $187,915 | $199,190 | $211,141 |
| - Loan Balance | ($87,525) | ($86,560) | ($85,526) | ($84,416) | ($83,227) | ($81,952) | ($80,585) | ($79,119) | ($77,547) | ($75,862) |
| = Equity | $37,449 | $45,912 | $54,895 | $64,430 | $74,550 | $85,292 | $96,693 | $108,796 | $121,643 | $135,279 |
| Loan-to-Value Ratio | 70.0% | 65.3% | 60.9% | 56.7% | 52.7% | 49.0% | 45.5% | 42.1% | 38.9% | 35.9% |
| Potential Cash-Out Refi | $24,952 | $32,665 | $40,853 | $49,545 | $58,772 | $68,567 | $78,966 | $90,005 | $101,724 | $114,165 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $37,449 | $45,912 | $54,895 | $64,430 | $74,550 | $85,292 | $96,693 | $108,796 | $121,643 | $135,279 |
| - Closing Costs | ($8,748) | ($9,273) | ($9,829) | ($10,419) | ($11,044) | ($11,707) | ($12,409) | ($13,154) | ($13,943) | ($14,780) |
| = Proceeds After Sale | $28,701 | $36,639 | $45,066 | $54,011 | $63,505 | $73,585 | $84,284 | $95,642 | $107,699 | $120,499 |
| + Cumulative Cash Flow | $3,747 | $7,817 | $12,222 | $16,970 | $22,072 | $27,539 | $33,381 | $39,610 | $46,238 | $53,276 |
| - Initial Cash Invested | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) | ($31,818) |
| = Net Profit | $629 | $12,638 | $25,469 | $39,162 | $53,759 | $69,305 | $85,847 | $103,434 | $122,119 | $141,957 |
| Internal Rate of Return | 2.0% | 19.2% | 23.7% | 25.1% | 25.4% | 25.3% | 25.0% | 24.6% | 24.2% | 23.8% |
| Return on Investment | 2.0% | 39.7% | 80.0% | 123.1% | 169.0% | 217.8% | 269.8% | 325.1% | 383.8% | 446.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
