| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $50,400 | $51,912 | $53,469 | $55,073 | $56,726 | $58,427 | $60,180 | $61,986 | $63,845 | $65,761 |
| Vacancy Losses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Income | $50,400 | $51,912 | $53,469 | $55,073 | $56,726 | $58,427 | $60,180 | $61,986 | $63,845 | $65,761 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,300) | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) | ($1,552) | ($1,599) | ($1,647) | ($1,696) |
| Insurance | ($325) | ($335) | ($345) | ($355) | ($366) | ($377) | ($388) | ($400) | ($412) | ($424) |
| Management Fees | ($4,032) | ($4,153) | ($4,278) | ($4,406) | ($4,538) | ($4,674) | ($4,814) | ($4,959) | ($5,108) | ($5,261) |
| 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 | ($2,520) | ($2,596) | ($2,673) | ($2,754) | ($2,836) | ($2,921) | ($3,009) | ($3,099) | ($3,192) | ($3,288) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,177) | ($8,422) | ($8,675) | ($8,935) | ($9,203) | ($9,479) | ($9,764) | ($10,057) | ($10,358) | ($10,669) |
| 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 | $42,223 | $43,490 | $44,794 | $46,138 | $47,522 | $48,948 | $50,416 | $51,929 | $53,487 | $55,091 |
| - Mortgage Payments | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) | ($36,976) |
| = Cash Flow | $5,247 | $6,514 | $7,818 | $9,162 | $10,546 | $11,972 | $13,441 | $14,953 | $16,511 | $18,115 |
| + Principal Reduction | $5,449 | $5,814 | $6,203 | $6,619 | $7,062 | $7,535 | $8,039 | $8,578 | $9,152 | $9,765 |
| + Appreciation | $39,000 | $41,340 | $43,820 | $46,450 | $49,237 | $52,191 | $55,322 | $58,642 | $62,160 | $65,890 |
| = Gross Equity Income | $49,696 | $53,668 | $57,842 | $62,230 | $66,845 | $71,698 | $76,802 | $82,172 | $87,823 | $93,770 |
| Capitalization Rate | 6.1% | 6.0% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% |
| Cash on Cash Return | 2.8% | 3.5% | 4.2% | 4.9% | 5.6% | 6.4% | 7.2% | 8.0% | 8.8% | 9.7% |
| Return on Equity | 24.0% | 21.1% | 19.0% | 17.4% | 16.2% | 15.2% | 14.3% | 13.6% | 13.0% | 12.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $689,000 | $730,340 | $774,160 | $820,610 | $869,847 | $922,037 | $977,360 | $1,036,001 | $1,098,161 | $1,164,051 |
| - Loan Balance | ($482,051) | ($476,237) | ($470,034) | ($463,415) | ($456,354) | ($448,819) | ($440,779) | ($432,201) | ($423,049) | ($413,284) |
| = Equity | $206,949 | $254,103 | $304,126 | $357,195 | $413,493 | $473,219 | $536,580 | $603,800 | $675,112 | $750,767 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $138,049 | $181,069 | $226,710 | $275,134 | $326,508 | $381,015 | $438,844 | $500,200 | $565,296 | $634,362 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $206,949 | $254,103 | $304,126 | $357,195 | $413,493 | $473,219 | $536,580 | $603,800 | $675,112 | $750,767 |
| - Closing Costs | ($48,230) | ($51,124) | ($54,191) | ($57,443) | ($60,889) | ($64,543) | ($68,415) | ($72,520) | ($76,871) | ($81,484) |
| = Proceeds After Sale | $158,719 | $202,979 | $249,935 | $299,752 | $352,604 | $408,676 | $468,165 | $531,280 | $598,241 | $669,284 |
| + Cumulative Cash Flow | $5,247 | $11,761 | $19,579 | $28,741 | $39,288 | $51,260 | $64,700 | $79,653 | $96,164 | $114,280 |
| - Initial Cash Invested | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) | ($186,875) |
| = Net Profit | ($22,909) | $27,865 | $82,639 | $141,618 | $205,017 | $273,061 | $345,991 | $424,058 | $507,530 | $596,688 |
| Internal Rate of Return | -12.3% | 7.3% | 13.3% | 15.7% | 16.7% | 17.1% | 17.2% | 17.1% | 17.0% | 16.8% |
| Return on Investment | -12.3% | 14.9% | 44.2% | 75.8% | 109.7% | 146.1% | 185.1% | 226.9% | 271.6% | 319.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
