| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $31,800 | $32,754 | $33,737 | $34,749 | $35,791 | $36,865 | $37,971 | $39,110 | $40,283 | $41,492 |
| Vacancy Losses | ($2,544) | ($2,620) | ($2,699) | ($2,780) | ($2,863) | ($2,949) | ($3,038) | ($3,129) | ($3,223) | ($3,319) |
| Operating Income | $29,256 | $30,134 | $31,038 | $31,969 | $32,928 | $33,916 | $34,933 | $35,981 | $37,061 | $38,172 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,348) | ($2,418) | ($2,491) | ($2,566) | ($2,643) | ($2,722) | ($2,804) | ($2,888) | ($2,974) | ($3,064) |
| Insurance | ($1,565) | ($1,612) | ($1,661) | ($1,711) | ($1,762) | ($1,815) | ($1,869) | ($1,925) | ($1,983) | ($2,042) |
| 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 | ($1,590) | ($1,638) | ($1,687) | ($1,737) | ($1,790) | ($1,843) | ($1,899) | ($1,955) | ($2,014) | ($2,075) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,503) | ($5,668) | ($5,839) | ($6,014) | ($6,194) | ($6,380) | ($6,571) | ($6,768) | ($6,972) | ($7,181) |
| 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 | $23,753 | $24,465 | $25,199 | $25,955 | $26,734 | $27,536 | $28,362 | $29,213 | $30,089 | $30,992 |
| - Mortgage Payments | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) | ($22,262) |
| = Cash Flow | $1,491 | $2,203 | $2,937 | $3,693 | $4,472 | $5,274 | $6,100 | $6,951 | $7,827 | $8,730 |
| + Principal Reduction | $3,281 | $3,500 | $3,735 | $3,985 | $4,252 | $4,537 | $4,840 | $5,164 | $5,510 | $5,879 |
| + Appreciation | $75,061 | $27,984 | $29,663 | $31,443 | $33,329 | $35,329 | $37,449 | $39,696 | $42,078 | $44,602 |
| = Gross Equity Income | $79,832 | $33,688 | $36,335 | $39,121 | $42,053 | $45,140 | $48,389 | $51,811 | $55,415 | $59,212 |
| Capitalization Rate | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% |
| Cash on Cash Return | 1.3% | 1.9% | 2.5% | 3.2% | 3.8% | 4.5% | 5.2% | 6.0% | 6.7% | 7.5% |
| Return on Equity | 45.3% | 16.2% | 15.1% | 14.1% | 13.4% | 12.8% | 12.2% | 11.7% | 11.3% | 11.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $466,400 | $494,384 | $524,047 | $555,490 | $588,819 | $624,148 | $661,597 | $701,293 | $743,371 | $787,973 |
| - Loan Balance | ($290,224) | ($286,723) | ($282,989) | ($279,004) | ($274,752) | ($270,215) | ($265,375) | ($260,211) | ($254,700) | ($248,821) |
| = Equity | $176,176 | $207,661 | $241,059 | $276,486 | $314,067 | $353,933 | $396,222 | $441,083 | $488,670 | $539,152 |
| Loan-to-Value Ratio | 62.2% | 58.0% | 54.0% | 50.2% | 46.7% | 43.3% | 40.1% | 37.1% | 34.3% | 31.6% |
| Potential Cash-Out Refi | $129,536 | $158,222 | $188,654 | $220,937 | $255,185 | $291,518 | $330,062 | $370,953 | $414,333 | $460,355 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $176,176 | $207,661 | $241,059 | $276,486 | $314,067 | $353,933 | $396,222 | $441,083 | $488,670 | $539,152 |
| - Closing Costs | ($32,648) | ($34,607) | ($36,683) | ($38,884) | ($41,217) | ($43,690) | ($46,312) | ($49,091) | ($52,036) | ($55,158) |
| = Proceeds After Sale | $143,528 | $173,054 | $204,375 | $237,602 | $272,850 | $310,243 | $349,910 | $391,992 | $436,635 | $483,994 |
| + Cumulative Cash Flow | $1,491 | $3,694 | $6,632 | $10,325 | $14,797 | $20,071 | $26,171 | $33,122 | $40,949 | $49,679 |
| - Initial Cash Invested | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) | ($116,423) |
| = Net Profit | $28,596 | $60,325 | $94,583 | $131,503 | $171,223 | $213,890 | $259,658 | $308,690 | $361,160 | $417,250 |
| Internal Rate of Return | 24.6% | 23.3% | 22.2% | 21.1% | 20.3% | 19.5% | 18.9% | 18.3% | 17.8% | 17.3% |
| Return on Investment | 24.6% | 51.8% | 81.2% | 113.0% | 147.1% | 183.7% | 223.0% | 265.1% | 310.2% | 358.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
