Vaughn Single Family
Montgomery, AL 36106
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $18,000 | $18,540 | $19,096 | $19,669 | $20,259 | $20,867 | $21,493 | $22,138 | $22,802 | $23,486 |
| Vacancy Losses | ($1,440) | ($1,483) | ($1,528) | ($1,574) | ($1,621) | ($1,669) | ($1,719) | ($1,771) | ($1,824) | ($1,879) |
| Operating Income | $16,560 | $17,057 | $17,569 | $18,096 | $18,638 | $19,198 | $19,774 | $20,367 | $20,978 | $21,607 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,259) | ($1,297) | ($1,336) | ($1,376) | ($1,417) | ($1,460) | ($1,504) | ($1,549) | ($1,595) | ($1,643) |
| Insurance | ($1,224) | ($1,261) | ($1,299) | ($1,338) | ($1,378) | ($1,419) | ($1,462) | ($1,506) | ($1,551) | ($1,597) |
| Management Fees | ($1,325) | ($1,365) | ($1,405) | ($1,448) | ($1,491) | ($1,536) | ($1,582) | ($1,629) | ($1,678) | ($1,729) |
| 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 | ($900) | ($927) | ($955) | ($983) | ($1,013) | ($1,043) | ($1,075) | ($1,107) | ($1,140) | ($1,174) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,708) | ($4,850) | ($4,995) | ($5,145) | ($5,299) | ($5,458) | ($5,622) | ($5,791) | ($5,964) | ($6,143) |
| 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 | $11,852 | $12,207 | $12,573 | $12,951 | $13,339 | $13,739 | $14,151 | $14,576 | $15,013 | $15,464 |
| - Mortgage Payments | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) | ($10,462) |
| = Cash Flow | $1,390 | $1,745 | $2,111 | $2,489 | $2,877 | $3,277 | $3,689 | $4,114 | $4,551 | $5,002 |
| + Principal Reduction | $1,335 | $1,431 | $1,535 | $1,646 | $1,764 | $1,892 | $2,028 | $2,175 | $2,332 | $2,500 |
| + Appreciation | $10,494 | $11,124 | $11,791 | $12,499 | $13,248 | $14,043 | $14,886 | $15,779 | $16,726 | $17,729 |
| = Gross Equity Income | $13,219 | $14,300 | $15,437 | $16,633 | $17,890 | $19,212 | $20,604 | $22,068 | $23,609 | $25,231 |
| Capitalization Rate | 6.4% | 6.2% | 6.0% | 5.9% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% |
| Cash on Cash Return | 2.5% | 3.1% | 3.8% | 4.5% | 5.2% | 5.9% | 6.7% | 7.4% | 8.2% | 9.0% |
| Return on Equity | 23.8% | 21.0% | 19.0% | 17.4% | 16.2% | 15.2% | 14.4% | 13.7% | 13.1% | 12.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $185,394 | $196,518 | $208,309 | $220,807 | $234,056 | $248,099 | $262,985 | $278,764 | $295,490 | $313,219 |
| - Loan Balance | ($129,840) | ($128,408) | ($126,874) | ($125,228) | ($123,464) | ($121,572) | ($119,544) | ($117,369) | ($115,038) | ($112,538) |
| = Equity | $55,554 | $68,109 | $81,435 | $95,579 | $110,592 | $126,527 | $143,441 | $161,395 | $180,452 | $200,681 |
| 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 | $37,015 | $48,457 | $60,604 | $73,498 | $87,186 | $101,717 | $117,142 | $133,518 | $150,903 | $169,360 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $55,554 | $68,109 | $81,435 | $95,579 | $110,592 | $126,527 | $143,441 | $161,395 | $180,452 | $200,681 |
| - Closing Costs | ($12,978) | ($13,756) | ($14,582) | ($15,457) | ($16,384) | ($17,367) | ($18,409) | ($19,513) | ($20,684) | ($21,925) |
| = Proceeds After Sale | $42,576 | $54,353 | $66,853 | $80,123 | $94,208 | $109,160 | $125,032 | $141,881 | $159,768 | $178,756 |
| + Cumulative Cash Flow | $1,390 | $3,135 | $5,246 | $7,735 | $10,612 | $13,889 | $17,579 | $21,693 | $26,244 | $31,246 |
| - Initial Cash Invested | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) | ($55,421) |
| = Net Profit | ($11,455) | $2,066 | $16,678 | $32,436 | $49,399 | $67,628 | $87,189 | $108,153 | $130,591 | $154,581 |
| Internal Rate of Return | -20.7% | 1.9% | 9.4% | 12.6% | 14.2% | 15.0% | 15.4% | 15.5% | 15.6% | 15.5% |
| Return on Investment | -20.7% | 3.7% | 30.1% | 58.5% | 89.1% | 122.0% | 157.3% | 195.1% | 235.6% | 278.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.