| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $43,200 | $44,496 | $45,831 | $47,206 | $48,622 | $50,081 | $51,583 | $53,131 | $54,724 | $56,366 |
| Vacancy Losses | ($3,456) | ($3,560) | ($3,666) | ($3,776) | ($3,890) | ($4,006) | ($4,127) | ($4,250) | ($4,378) | ($4,509) |
| Operating Income | $39,744 | $40,936 | $42,164 | $43,429 | $44,732 | $46,074 | $47,456 | $48,880 | $50,347 | $51,857 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,160) | ($2,225) | ($2,292) | ($2,360) | ($2,431) | ($2,504) | ($2,579) | ($2,657) | ($2,736) | ($2,818) |
| Insurance | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Management Fees | ($3,180) | ($3,275) | ($3,373) | ($3,474) | ($3,579) | ($3,686) | ($3,797) | ($3,910) | ($4,028) | ($4,149) |
| 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 | ($2,160) | ($2,225) | ($2,292) | ($2,360) | ($2,431) | ($2,504) | ($2,579) | ($2,657) | ($2,736) | ($2,818) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,580) | ($8,837) | ($9,102) | ($9,375) | ($9,656) | ($9,946) | ($10,244) | ($10,552) | ($10,868) | ($11,194) |
| 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 | $31,164 | $32,099 | $33,062 | $34,054 | $35,076 | $36,128 | $37,212 | $38,328 | $39,478 | $40,663 |
| - Mortgage Payments | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) | ($25,043) |
| = Cash Flow | $6,122 | $7,057 | $8,020 | $9,012 | $10,033 | $11,086 | $12,169 | $13,286 | $14,436 | $15,620 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $32,400 | $34,344 | $36,405 | $38,589 | $40,904 | $43,359 | $45,960 | $48,718 | $51,641 | $54,739 |
| = Gross Equity Income | $38,522 | $41,401 | $44,424 | $47,601 | $50,938 | $54,444 | $58,129 | $62,003 | $66,076 | $70,359 |
| 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 | 3.1% | 3.6% | 4.1% | 4.6% | 5.1% | 5.6% | 6.1% | 6.7% | 7.3% | 7.9% |
| Return on Equity | 19.8% | 18.1% | 16.8% | 15.7% | 14.8% | 14.0% | 13.4% | 12.8% | 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 | $572,400 | $606,744 | $643,149 | $681,738 | $722,642 | $766,000 | $811,960 | $860,678 | $912,319 | $967,058 |
| - Loan Balance | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) | ($378,000) |
| = Equity | $194,400 | $228,744 | $265,149 | $303,738 | $344,642 | $388,000 | $433,960 | $482,678 | $534,319 | $589,058 |
| 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 | $137,160 | $168,070 | $200,834 | $235,564 | $272,378 | $311,400 | $352,764 | $396,610 | $443,087 | $492,352 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $194,400 | $228,744 | $265,149 | $303,738 | $344,642 | $388,000 | $433,960 | $482,678 | $534,319 | $589,058 |
| - Closing Costs | ($40,068) | ($42,472) | ($45,020) | ($47,722) | ($50,585) | ($53,620) | ($56,837) | ($60,247) | ($63,862) | ($67,694) |
| = Proceeds After Sale | $154,332 | $186,272 | $220,128 | $256,016 | $294,057 | $334,380 | $377,123 | $422,431 | $470,456 | $521,364 |
| + Cumulative Cash Flow | $6,122 | $13,179 | $21,199 | $30,210 | $40,244 | $51,329 | $63,499 | $76,785 | $91,220 | $106,840 |
| - Initial Cash Invested | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) | ($197,988) |
| = Net Profit | ($37,534) | $1,463 | $43,339 | $88,238 | $136,313 | $187,722 | $242,634 | $301,227 | $363,689 | $430,216 |
| Internal Rate of Return | -19.0% | 0.4% | 7.0% | 10.1% | 11.6% | 12.5% | 13.0% | 13.3% | 13.4% | 13.5% |
| Return on Investment | -19.0% | 0.7% | 21.9% | 44.6% | 68.8% | 94.8% | 122.5% | 152.1% | 183.7% | 217.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
