| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,000 | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 |
| Vacancy Losses | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Operating Income | $33,120 | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,406) | ($5,568) | ($5,735) | ($5,908) | ($6,085) | ($6,267) | ($6,455) | ($6,649) | ($6,848) | ($7,054) |
| Insurance | ($2,033) | ($2,094) | ($2,157) | ($2,221) | ($2,288) | ($2,357) | ($2,427) | ($2,500) | ($2,575) | ($2,652) |
| 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 | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,159) | ($8,404) | ($8,656) | ($8,916) | ($9,183) | ($9,459) | ($9,742) | ($10,035) | ($10,336) | ($10,646) |
| 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 | $24,961 | $25,710 | $26,481 | $27,276 | $28,094 | $28,937 | $29,805 | $30,699 | $31,620 | $32,568 |
| - Mortgage Payments | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) | ($23,313) |
| = Cash Flow | $1,648 | $2,397 | $3,169 | $3,963 | $4,781 | $5,624 | $6,492 | $7,386 | $8,307 | $9,256 |
| + Principal Reduction | $3,991 | $4,237 | $4,497 | $4,774 | $5,068 | $5,380 | $5,712 | $6,063 | $6,437 | $6,833 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $31,589 | $34,141 | $36,823 | $39,644 | $42,611 | $45,731 | $49,014 | $52,469 | $56,104 | $59,931 |
| Capitalization Rate | 5.4% | 5.3% | 5.1% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% |
| Cash on Cash Return | 1.3% | 1.8% | 2.4% | 3.1% | 3.7% | 4.3% | 5.0% | 5.7% | 6.4% | 7.1% |
| Return on Equity | 22.9% | 20.1% | 18.1% | 16.6% | 15.4% | 14.4% | 13.6% | 13.0% | 12.4% | 11.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Loan Balance | ($320,384) | ($316,148) | ($311,650) | ($306,876) | ($301,808) | ($296,427) | ($290,716) | ($284,652) | ($278,216) | ($271,383) |
| = Equity | $138,066 | $169,809 | $203,464 | $239,145 | $276,975 | $317,082 | $359,605 | $404,687 | $452,484 | $503,159 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.1% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $23,453 | $48,320 | $74,686 | $102,640 | $132,279 | $163,705 | $197,025 | $232,352 | $269,809 | $309,524 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $138,066 | $169,809 | $203,464 | $239,145 | $276,975 | $317,082 | $359,605 | $404,687 | $452,484 | $503,159 |
| - Closing Costs | ($32,092) | ($34,017) | ($36,058) | ($38,221) | ($40,515) | ($42,946) | ($45,522) | ($48,254) | ($51,149) | ($54,218) |
| = Proceeds After Sale | $105,974 | $135,792 | $167,406 | $200,924 | $236,460 | $274,137 | $314,082 | $356,433 | $401,335 | $448,941 |
| + Cumulative Cash Flow | $1,648 | $4,046 | $7,214 | $11,177 | $15,959 | $21,583 | $28,075 | $35,461 | $43,769 | $53,025 |
| - Initial Cash Invested | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) |
| = Net Profit | ($22,127) | $10,088 | $44,871 | $82,351 | $122,669 | $165,970 | $212,407 | $262,145 | $315,354 | $372,216 |
| Internal Rate of Return | -17.1% | 3.8% | 10.5% | 13.3% | 14.6% | 15.2% | 15.4% | 15.5% | 15.4% | 15.3% |
| Return on Investment | -17.1% | 7.8% | 34.6% | 63.5% | 94.5% | 127.9% | 163.7% | 202.0% | 243.0% | 286.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
