| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $232,272 | $239,240 | $246,417 | $253,810 | $261,424 | $269,267 | $277,345 | $285,665 | $294,235 | $303,062 |
| Vacancy Losses | ($18,582) | ($19,139) | ($19,713) | ($20,305) | ($20,914) | ($21,541) | ($22,188) | ($22,853) | ($23,539) | ($24,245) |
| Operating Income | $213,690 | $220,101 | $226,704 | $233,505 | $240,510 | $247,726 | $255,157 | $262,812 | $270,696 | $278,817 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($8,125) | ($8,369) | ($8,620) | ($8,878) | ($9,145) | ($9,419) | ($9,702) | ($9,993) | ($10,293) | ($10,601) |
| Insurance | ($3,250) | ($3,348) | ($3,448) | ($3,551) | ($3,658) | ($3,768) | ($3,881) | ($3,997) | ($4,117) | ($4,241) |
| Management Fees | ($17,095) | ($17,608) | ($18,136) | ($18,680) | ($19,241) | ($19,818) | ($20,413) | ($21,025) | ($21,656) | ($22,305) |
| 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 | ($18,582) | ($19,139) | ($19,713) | ($20,305) | ($20,914) | ($21,541) | ($22,188) | ($22,853) | ($23,539) | ($24,245) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($47,052) | ($48,464) | ($49,917) | ($51,415) | ($52,957) | ($54,546) | ($56,183) | ($57,868) | ($59,604) | ($61,392) |
| 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 | $166,638 | $171,637 | $176,787 | $182,090 | $187,553 | $193,179 | $198,975 | $204,944 | $211,092 | $217,425 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $166,638 | $171,637 | $176,787 | $182,090 | $187,553 | $193,179 | $198,975 | $204,944 | $211,092 | $217,425 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $195,000 | $206,700 | $219,102 | $232,248 | $246,183 | $260,954 | $276,611 | $293,208 | $310,800 | $329,448 |
| = Gross Equity Income | $361,638 | $378,337 | $395,889 | $414,338 | $433,736 | $454,133 | $475,586 | $498,152 | $521,893 | $546,874 |
| Capitalization Rate | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% | 3.8% | 3.7% |
| Cash on Cash Return | 5.0% | 5.1% | 5.3% | 5.4% | 5.6% | 5.8% | 5.9% | 6.1% | 6.3% | 6.5% |
| Return on Equity | 10.5% | 10.4% | 10.2% | 10.1% | 10.0% | 9.9% | 9.7% | 9.6% | 9.5% | 9.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $3,445,000 | $3,651,700 | $3,870,802 | $4,103,050 | $4,349,233 | $4,610,187 | $4,886,798 | $5,180,006 | $5,490,807 | $5,820,255 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $3,445,000 | $3,651,700 | $3,870,802 | $4,103,050 | $4,349,233 | $4,610,187 | $4,886,798 | $5,180,006 | $5,490,807 | $5,820,255 |
| Loan-to-Value Ratio | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Potential Cash-Out Refi | $3,100,500 | $3,286,530 | $3,483,722 | $3,692,745 | $3,914,310 | $4,149,168 | $4,398,119 | $4,662,006 | $4,941,726 | $5,238,230 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $3,445,000 | $3,651,700 | $3,870,802 | $4,103,050 | $4,349,233 | $4,610,187 | $4,886,798 | $5,180,006 | $5,490,807 | $5,820,255 |
| - Closing Costs | ($241,150) | ($255,619) | ($270,956) | ($287,214) | ($304,446) | ($322,713) | ($342,076) | ($362,600) | ($384,356) | ($407,418) |
| = Proceeds After Sale | $3,203,850 | $3,396,081 | $3,599,846 | $3,815,837 | $4,044,787 | $4,287,474 | $4,544,722 | $4,817,406 | $5,106,450 | $5,412,837 |
| + Cumulative Cash Flow | $166,638 | $338,276 | $515,062 | $697,152 | $884,705 | $1,077,885 | $1,276,859 | $1,481,803 | $1,692,896 | $1,910,321 |
| - Initial Cash Invested | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) | ($3,347,500) |
| = Net Profit | $22,988 | $386,857 | $767,408 | $1,165,489 | $1,581,992 | $2,017,859 | $2,474,082 | $2,951,709 | $3,451,846 | $3,975,658 |
| Internal Rate of Return | 0.7% | 5.8% | 7.5% | 8.3% | 8.8% | 9.1% | 9.3% | 9.4% | 9.5% | 9.5% |
| Return on Investment | 0.7% | 11.6% | 22.9% | 34.8% | 47.3% | 60.3% | 73.9% | 88.2% | 103.1% | 118.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
