| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $53,400 | $55,002 | $56,652 | $58,352 | $60,102 | $61,905 | $63,762 | $65,675 | $67,646 | $69,675 |
| Vacancy Losses | ($4,272) | ($4,400) | ($4,532) | ($4,668) | ($4,808) | ($4,952) | ($5,101) | ($5,254) | ($5,412) | ($5,574) |
| Operating Income | $49,128 | $50,602 | $52,120 | $53,683 | $55,294 | $56,953 | $58,661 | $60,421 | $62,234 | $64,101 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,875) | ($1,931) | ($1,989) | ($2,049) | ($2,110) | ($2,174) | ($2,239) | ($2,306) | ($2,375) | ($2,446) |
| Insurance | ($1,125) | ($1,159) | ($1,194) | ($1,229) | ($1,266) | ($1,304) | ($1,343) | ($1,384) | ($1,425) | ($1,468) |
| Management Fees | ($3,930) | ($4,048) | ($4,170) | ($4,295) | ($4,424) | ($4,556) | ($4,693) | ($4,834) | ($4,979) | ($5,128) |
| 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 | ($1,602) | ($1,650) | ($1,700) | ($1,751) | ($1,803) | ($1,857) | ($1,913) | ($1,970) | ($2,029) | ($2,090) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,532) | ($8,788) | ($9,052) | ($9,323) | ($9,603) | ($9,891) | ($10,188) | ($10,494) | ($10,808) | ($11,133) |
| 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 | $40,596 | $41,814 | $43,068 | $44,360 | $45,691 | $47,062 | $48,473 | $49,928 | $51,425 | $52,968 |
| - Mortgage Payments | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) | ($34,781) |
| = Cash Flow | $5,814 | $7,032 | $8,287 | $9,579 | $10,910 | $12,280 | $13,692 | $15,146 | $16,644 | $18,187 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $45,000 | $47,700 | $50,562 | $53,596 | $56,811 | $60,220 | $63,833 | $67,663 | $71,723 | $76,027 |
| = Gross Equity Income | $50,814 | $54,732 | $58,849 | $63,175 | $67,721 | $72,500 | $77,526 | $82,810 | $88,367 | $94,214 |
| Capitalization Rate | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 3.9% |
| Cash on Cash Return | 2.3% | 2.7% | 3.2% | 3.7% | 4.2% | 4.8% | 5.3% | 5.9% | 6.5% | 7.0% |
| Return on Equity | 18.8% | 17.2% | 16.0% | 15.0% | 14.1% | 13.5% | 12.9% | 12.4% | 11.9% | 11.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $795,000 | $842,700 | $893,262 | $946,858 | $1,003,669 | $1,063,889 | $1,127,723 | $1,195,386 | $1,267,109 | $1,343,136 |
| - Loan Balance | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) | ($525,000) |
| = Equity | $270,000 | $317,700 | $368,262 | $421,858 | $478,669 | $538,889 | $602,723 | $670,386 | $742,109 | $818,136 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $190,500 | $233,430 | $278,936 | $327,172 | $378,302 | $432,500 | $489,950 | $550,847 | $615,398 | $683,822 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $270,000 | $317,700 | $368,262 | $421,858 | $478,669 | $538,889 | $602,723 | $670,386 | $742,109 | $818,136 |
| - Closing Costs | ($55,650) | ($58,989) | ($62,528) | ($66,280) | ($70,257) | ($74,472) | ($78,941) | ($83,677) | ($88,698) | ($94,020) |
| = Proceeds After Sale | $214,350 | $258,711 | $305,734 | $355,578 | $408,412 | $464,417 | $523,782 | $586,709 | $653,412 | $724,116 |
| + Cumulative Cash Flow | $5,814 | $12,847 | $21,134 | $30,712 | $41,622 | $53,902 | $67,595 | $82,741 | $99,385 | $117,572 |
| - Initial Cash Invested | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) | ($258,000) |
| = Net Profit | ($37,836) | $13,558 | $68,867 | $128,290 | $192,034 | $260,319 | $333,377 | $411,450 | $494,797 | $583,688 |
| Internal Rate of Return | -14.7% | 2.6% | 8.4% | 10.9% | 12.2% | 12.9% | 13.3% | 13.5% | 13.6% | 13.6% |
| Return on Investment | -14.7% | 5.3% | 26.7% | 49.7% | 74.4% | 100.9% | 129.2% | 159.5% | 191.8% | 226.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
