| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $21,600 | $22,248 | $22,915 | $23,603 | $24,311 | $25,040 | $25,792 | $26,565 | $27,362 | $28,183 |
| Vacancy Losses | ($1,728) | ($1,780) | ($1,833) | ($1,888) | ($1,945) | ($2,003) | ($2,063) | ($2,125) | ($2,189) | ($2,255) |
| Operating Income | $19,872 | $20,468 | $21,082 | $21,715 | $22,366 | $23,037 | $23,728 | $24,440 | $25,173 | $25,928 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,788) | ($1,841) | ($1,896) | ($1,953) | ($2,012) | ($2,072) | ($2,134) | ($2,198) | ($2,264) | ($2,332) |
| Insurance | ($1,155) | ($1,190) | ($1,225) | ($1,262) | ($1,300) | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) | ($645) | ($664) | ($684) | ($705) |
| Maintenance | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,595) | ($5,762) | ($5,935) | ($6,113) | ($6,297) | ($6,486) | ($6,680) | ($6,881) | ($7,087) | ($7,300) |
| 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 | $14,278 | $14,706 | $15,147 | $15,601 | $16,069 | $16,552 | $17,048 | $17,560 | $18,086 | $18,629 |
| - Mortgage Payments | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) | ($13,298) |
| = Cash Flow | $980 | $1,408 | $1,849 | $2,304 | $2,772 | $3,254 | $3,750 | $4,262 | $4,789 | $5,331 |
| + Principal Reduction | $2,534 | $2,681 | $2,835 | $2,999 | $3,172 | $3,355 | $3,549 | $3,754 | $3,970 | $4,199 |
| + Appreciation | $16,500 | $17,490 | $18,539 | $19,652 | $20,831 | $22,081 | $23,406 | $24,810 | $26,298 | $27,876 |
| = Gross Equity Income | $20,014 | $21,579 | $23,224 | $24,954 | $26,775 | $28,690 | $30,705 | $32,825 | $35,057 | $37,407 |
| Capitalization Rate | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | 4.0% | 4.6% | 5.1% | 5.7% |
| Return on Equity | 19.7% | 17.7% | 16.2% | 15.1% | 14.1% | 13.3% | 12.7% | 12.1% | 11.6% | 11.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $291,500 | $308,990 | $327,529 | $347,181 | $368,012 | $390,093 | $413,498 | $438,308 | $464,607 | $492,483 |
| - Loan Balance | ($189,966) | ($187,285) | ($184,450) | ($181,451) | ($178,279) | ($174,924) | ($171,375) | ($167,622) | ($163,651) | ($159,452) |
| = Equity | $101,534 | $121,705 | $143,079 | $165,730 | $189,733 | $215,169 | $242,123 | $270,687 | $300,955 | $333,031 |
| Loan-to-Value Ratio | 65.2% | 60.6% | 56.3% | 52.3% | 48.4% | 44.8% | 41.4% | 38.2% | 35.2% | 32.4% |
| Potential Cash-Out Refi | $72,384 | $90,806 | $110,326 | $131,012 | $152,932 | $176,159 | $200,773 | $226,856 | $254,495 | $283,783 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $101,534 | $121,705 | $143,079 | $165,730 | $189,733 | $215,169 | $242,123 | $270,687 | $300,955 | $333,031 |
| - Closing Costs | ($20,405) | ($21,629) | ($22,927) | ($24,303) | ($25,761) | ($27,306) | ($28,945) | ($30,682) | ($32,522) | ($34,474) |
| = Proceeds After Sale | $81,129 | $100,075 | $120,152 | $141,427 | $163,972 | $187,862 | $213,178 | $240,005 | $268,433 | $298,557 |
| + Cumulative Cash Flow | $980 | $2,388 | $4,237 | $6,541 | $9,313 | $12,567 | $16,317 | $20,579 | $25,368 | $30,699 |
| - Initial Cash Invested | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) | ($93,500) |
| = Net Profit | ($11,391) | $8,963 | $30,890 | $54,468 | $79,785 | $106,929 | $135,995 | $167,084 | $200,300 | $235,756 |
| Internal Rate of Return | -12.2% | 4.7% | 10.1% | 12.4% | 13.4% | 13.9% | 14.1% | 14.2% | 14.1% | 14.1% |
| Return on Investment | -12.2% | 9.6% | 33.0% | 58.3% | 85.3% | 114.4% | 145.4% | 178.7% | 214.2% | 252.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.