New Construction Duplex
Palm Coast, FL 32164
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $31,200 | $32,136 | $33,100 | $34,093 | $35,116 | $36,169 | $37,254 | $38,372 | $39,523 | $40,709 |
| Vacancy Losses | ($1,560) | ($1,607) | ($1,655) | ($1,705) | ($1,756) | ($1,808) | ($1,863) | ($1,919) | ($1,976) | ($2,035) |
| Operating Income | $29,640 | $30,529 | $31,445 | $32,388 | $33,360 | $34,361 | $35,392 | $36,453 | $37,547 | $38,673 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,784) | ($5,958) | ($6,136) | ($6,320) | ($6,510) | ($6,705) | ($6,906) | ($7,114) | ($7,327) | ($7,547) |
| Insurance | ($997) | ($1,027) | ($1,058) | ($1,090) | ($1,122) | ($1,156) | ($1,191) | ($1,226) | ($1,263) | ($1,301) |
| Management Fees | ($2,371) | ($2,442) | ($2,516) | ($2,591) | ($2,669) | ($2,749) | ($2,831) | ($2,916) | ($3,004) | ($3,094) |
| 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 | ($936) | ($964) | ($993) | ($1,023) | ($1,053) | ($1,085) | ($1,118) | ($1,151) | ($1,186) | ($1,221) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($10,089) | ($10,391) | ($10,703) | ($11,024) | ($11,355) | ($11,695) | ($12,046) | ($12,408) | ($12,780) | ($13,163) |
| 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 | $19,552 | $20,138 | $20,742 | $21,364 | $22,005 | $22,666 | $23,346 | $24,046 | $24,767 | $25,510 |
| - Mortgage Payments | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) | ($16,882) |
| = Cash Flow | $2,670 | $3,256 | $3,860 | $4,482 | $5,123 | $5,784 | $6,464 | $7,164 | $7,885 | $8,628 |
| + Principal Reduction | $5,384 | $5,596 | $5,817 | $6,046 | $6,285 | $6,533 | $6,791 | $7,058 | $7,337 | $7,626 |
| + Appreciation | $23,934 | $25,370 | $26,892 | $28,506 | $30,216 | $32,029 | $33,951 | $35,988 | $38,147 | $40,436 |
| = Gross Equity Income | $31,987 | $34,222 | $36,569 | $39,035 | $41,625 | $44,346 | $47,205 | $50,210 | $53,369 | $56,691 |
| Capitalization Rate | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% | 3.6% |
| Cash on Cash Return | 2.3% | 2.8% | 3.3% | 3.8% | 4.4% | 5.0% | 5.5% | 6.1% | 6.8% | 7.4% |
| Return on Equity | 24.8% | 21.4% | 19.0% | 17.2% | 15.8% | 14.7% | 13.8% | 13.0% | 12.4% | 11.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $422,834 | $448,204 | $475,096 | $503,602 | $533,818 | $565,847 | $599,798 | $635,786 | $673,933 | $714,369 |
| - Loan Balance | ($293,791) | ($288,195) | ($282,378) | ($276,331) | ($270,046) | ($263,514) | ($256,723) | ($249,665) | ($242,328) | ($234,702) |
| = Equity | $129,043 | $160,009 | $192,718 | $227,271 | $263,772 | $302,334 | $343,075 | $386,121 | $431,605 | $479,668 |
| Loan-to-Value Ratio | 69.5% | 64.3% | 59.4% | 54.9% | 50.6% | 46.6% | 42.8% | 39.3% | 36.0% | 32.9% |
| Potential Cash-Out Refi | $23,334 | $47,958 | $73,944 | $101,370 | $130,317 | $160,872 | $193,126 | $227,175 | $263,122 | $301,075 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $129,043 | $160,009 | $192,718 | $227,271 | $263,772 | $302,334 | $343,075 | $386,121 | $431,605 | $479,668 |
| - Closing Costs | ($29,598) | ($31,374) | ($33,257) | ($35,252) | ($37,367) | ($39,609) | ($41,986) | ($44,505) | ($47,175) | ($50,006) |
| = Proceeds After Sale | $99,444 | $128,635 | $159,462 | $192,018 | $226,404 | $262,724 | $301,089 | $341,616 | $384,430 | $429,662 |
| + Cumulative Cash Flow | $2,670 | $5,926 | $9,786 | $14,268 | $19,392 | $25,175 | $31,639 | $38,803 | $46,688 | $55,316 |
| - Initial Cash Invested | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) | ($116,678) |
| = Net Profit | ($14,564) | $17,882 | $52,569 | $89,609 | $129,118 | $171,221 | $216,050 | $263,741 | $314,440 | $368,300 |
| Internal Rate of Return | -12.5% | 7.5% | 13.5% | 15.8% | 16.7% | 17.0% | 17.0% | 16.8% | 16.6% | 16.4% |
| Return on Investment | -12.5% | 15.3% | 45.1% | 76.8% | 110.7% | 146.7% | 185.2% | 226.0% | 269.5% | 315.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.