| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,540 | $37,636 | $38,765 | $39,928 | $41,126 | $42,360 | $43,631 | $44,940 | $46,288 | $47,676 |
| Vacancy Losses | ($2,923) | ($3,011) | ($3,101) | ($3,194) | ($3,290) | ($3,389) | ($3,490) | ($3,595) | ($3,703) | ($3,814) |
| Operating Income | $33,617 | $34,625 | $35,664 | $36,734 | $37,836 | $38,971 | $40,140 | $41,344 | $42,585 | $43,862 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,200) | ($2,266) | ($2,334) | ($2,404) | ($2,476) | ($2,550) | ($2,627) | ($2,706) | ($2,787) | ($2,871) |
| Insurance | ($1,320) | ($1,360) | ($1,400) | ($1,442) | ($1,486) | ($1,530) | ($1,576) | ($1,623) | ($1,672) | ($1,722) |
| Management Fees | ($2,689) | ($2,770) | ($2,853) | ($2,939) | ($3,027) | ($3,118) | ($3,211) | ($3,308) | ($3,407) | ($3,509) |
| 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 | ($1,827) | ($1,882) | ($1,938) | ($1,996) | ($2,056) | ($2,118) | ($2,182) | ($2,247) | ($2,314) | ($2,384) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,036) | ($8,277) | ($8,526) | ($8,782) | ($9,045) | ($9,316) | ($9,596) | ($9,884) | ($10,180) | ($10,486) |
| 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 | $25,580 | $26,348 | $27,138 | $27,952 | $28,791 | $29,655 | $30,544 | $31,461 | $32,405 | $33,377 |
| - Mortgage Payments | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) | ($20,405) |
| = Cash Flow | $5,175 | $5,943 | $6,733 | $7,547 | $8,386 | $9,250 | $10,139 | $11,056 | $12,000 | $12,972 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $26,400 | $27,984 | $29,663 | $31,443 | $33,329 | $35,329 | $37,449 | $39,696 | $42,078 | $44,602 |
| = Gross Equity Income | $31,575 | $33,927 | $36,396 | $38,990 | $41,715 | $44,579 | $47,588 | $50,752 | $54,077 | $57,574 |
| Capitalization Rate | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% |
| Cash on Cash Return | 3.1% | 3.6% | 4.1% | 4.6% | 5.1% | 5.6% | 6.1% | 6.7% | 7.2% | 7.8% |
| Return on Equity | 19.9% | 18.2% | 16.8% | 15.8% | 14.9% | 14.1% | 13.5% | 12.9% | 12.4% | 12.0% |
| 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 | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) | ($308,000) |
| = Equity | $158,400 | $186,384 | $216,047 | $247,490 | $280,819 | $316,148 | $353,597 | $393,293 | $435,371 | $479,973 |
| 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 | $111,760 | $136,946 | $163,642 | $191,941 | $221,937 | $253,734 | $287,438 | $323,164 | $361,034 | $401,176 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $158,400 | $186,384 | $216,047 | $247,490 | $280,819 | $316,148 | $353,597 | $393,293 | $435,371 | $479,973 |
| - 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 | $125,752 | $151,777 | $179,364 | $208,606 | $239,602 | $272,458 | $307,286 | $344,203 | $383,335 | $424,815 |
| + Cumulative Cash Flow | $5,175 | $11,118 | $17,852 | $25,399 | $33,785 | $43,035 | $53,174 | $64,230 | $76,229 | $89,201 |
| - Initial Cash Invested | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) | ($165,728) |
| = Net Profit | ($34,801) | ($2,833) | $31,487 | $68,276 | $107,659 | $149,765 | $194,731 | $242,704 | $293,836 | $348,288 |
| Internal Rate of Return | -21.0% | -0.9% | 6.2% | 9.4% | 11.1% | 12.1% | 12.6% | 13.0% | 13.2% | 13.2% |
| Return on Investment | -21.0% | -1.7% | 19.0% | 41.2% | 65.0% | 90.4% | 117.5% | 146.4% | 177.3% | 210.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
