| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $91,200 | $93,936 | $96,754 | $99,657 | $102,646 | $105,726 | $108,898 | $112,164 | $115,529 | $118,995 |
| Vacancy Losses | ($7,296) | ($7,515) | ($7,740) | ($7,973) | ($8,212) | ($8,458) | ($8,712) | ($8,973) | ($9,242) | ($9,520) |
| Operating Income | $83,904 | $86,421 | $89,014 | $91,684 | $94,435 | $97,268 | $100,186 | $103,191 | $106,287 | $109,476 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,800) | ($4,944) | ($5,092) | ($5,245) | ($5,402) | ($5,565) | ($5,731) | ($5,903) | ($6,080) | ($6,263) |
| Insurance | ($2,400) | ($2,472) | ($2,546) | ($2,623) | ($2,701) | ($2,782) | ($2,866) | ($2,952) | ($3,040) | ($3,131) |
| Management Fees | ($6,712) | ($6,914) | ($7,121) | ($7,335) | ($7,555) | ($7,781) | ($8,015) | ($8,255) | ($8,503) | ($8,758) |
| 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 | ($1,824) | ($1,879) | ($1,935) | ($1,993) | ($2,053) | ($2,115) | ($2,178) | ($2,243) | ($2,311) | ($2,380) |
| Other | ($6,000) | ($6,180) | ($6,365) | ($6,556) | ($6,753) | ($6,956) | ($7,164) | ($7,379) | ($7,601) | ($7,829) |
| Operating Expenses | ($21,736) | ($22,388) | ($23,060) | ($23,752) | ($24,464) | ($25,198) | ($25,954) | ($26,733) | ($27,535) | ($28,361) |
| 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 | $62,168 | $64,033 | $65,954 | $67,932 | $69,970 | $72,069 | $74,231 | $76,458 | $78,752 | $81,115 |
| - Mortgage Payments | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) | ($56,700) |
| = Cash Flow | $5,468 | $7,333 | $9,254 | $11,232 | $13,270 | $15,369 | $17,531 | $19,758 | $22,052 | $24,415 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $72,000 | $76,320 | $80,899 | $85,753 | $90,898 | $96,352 | $102,133 | $108,261 | $114,757 | $121,642 |
| = Gross Equity Income | $77,468 | $83,653 | $90,153 | $96,985 | $104,169 | $111,722 | $119,665 | $128,020 | $136,809 | $146,057 |
| Capitalization Rate | 4.9% | 4.7% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | 1.2% | 1.7% | 2.1% | 2.6% | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 5.6% |
| Return on Equity | 17.9% | 16.5% | 15.3% | 14.4% | 13.6% | 13.0% | 12.4% | 11.9% | 11.5% | 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 | $1,272,000 | $1,348,320 | $1,429,219 | $1,514,972 | $1,605,871 | $1,702,223 | $1,804,356 | $1,912,618 | $2,027,375 | $2,149,017 |
| - Loan Balance | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) | ($840,000) |
| = Equity | $432,000 | $508,320 | $589,219 | $674,972 | $765,871 | $862,223 | $964,356 | $1,072,618 | $1,187,375 | $1,309,017 |
| 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 | $304,800 | $373,488 | $446,297 | $523,475 | $605,284 | $692,001 | $783,921 | $881,356 | $984,637 | $1,094,116 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $432,000 | $508,320 | $589,219 | $674,972 | $765,871 | $862,223 | $964,356 | $1,072,618 | $1,187,375 | $1,309,017 |
| - Closing Costs | ($89,040) | ($94,382) | ($100,045) | ($106,048) | ($112,411) | ($119,156) | ($126,305) | ($133,883) | ($141,916) | ($150,431) |
| = Proceeds After Sale | $342,960 | $413,938 | $489,174 | $568,924 | $653,460 | $743,067 | $838,051 | $938,734 | $1,045,459 | $1,158,586 |
| + Cumulative Cash Flow | $5,468 | $12,800 | $22,054 | $33,286 | $46,557 | $61,926 | $79,457 | $99,216 | $121,268 | $145,683 |
| - Initial Cash Invested | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) | ($439,680) |
| = Net Profit | ($91,252) | ($12,942) | $71,548 | $162,531 | $260,336 | $365,313 | $477,829 | $598,270 | $727,047 | $864,589 |
| Internal Rate of Return | -20.8% | -1.5% | 5.2% | 8.3% | 10.0% | 10.9% | 11.5% | 11.8% | 12.0% | 12.1% |
| Return on Investment | -20.8% | -2.9% | 16.3% | 37.0% | 59.2% | 83.1% | 108.7% | 136.1% | 165.4% | 196.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
