| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $14,400 | $14,832 | $15,277 | $15,735 | $16,207 | $16,694 | $17,194 | $17,710 | $18,241 | $18,789 |
| Vacancy Losses | ($1,152) | ($1,187) | ($1,222) | ($1,259) | ($1,297) | ($1,335) | ($1,376) | ($1,417) | ($1,459) | ($1,503) |
| Operating Income | $13,248 | $13,645 | $14,055 | $14,476 | $14,911 | $15,358 | $15,819 | $16,293 | $16,782 | $17,286 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,299) | ($1,338) | ($1,378) | ($1,420) | ($1,462) | ($1,506) | ($1,551) | ($1,598) | ($1,646) | ($1,695) |
| Insurance | ($840) | ($865) | ($891) | ($917) | ($945) | ($973) | ($1,003) | ($1,033) | ($1,064) | ($1,095) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Maintenance | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,395) | ($4,527) | ($4,663) | ($4,802) | ($4,947) | ($5,095) | ($5,248) | ($5,405) | ($5,567) | ($5,734) |
| 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 | $8,853 | $9,119 | $9,392 | $9,674 | $9,964 | $10,263 | $10,571 | $10,888 | $11,215 | $11,551 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $8,853 | $9,119 | $9,392 | $9,674 | $9,964 | $10,263 | $10,571 | $10,888 | $11,215 | $11,551 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $11,994 | $12,714 | $13,476 | $14,285 | $15,142 | $16,051 | $17,014 | $18,035 | $19,117 | $20,264 |
| = Gross Equity Income | $20,847 | $21,832 | $22,869 | $23,959 | $25,106 | $26,314 | $27,585 | $28,923 | $30,331 | $31,815 |
| Capitalization Rate | 4.2% | 4.1% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% | 3.2% |
| Cash on Cash Return | 4.3% | 4.4% | 4.5% | 4.7% | 4.8% | 4.9% | 5.1% | 5.2% | 5.4% | 5.6% |
| Return on Equity | 9.8% | 9.7% | 9.6% | 9.5% | 9.4% | 9.3% | 9.2% | 9.1% | 9.0% | 8.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $211,894 | $224,608 | $238,084 | $252,369 | $267,511 | $283,562 | $300,576 | $318,610 | $337,727 | $357,990 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $211,894 | $224,608 | $238,084 | $252,369 | $267,511 | $283,562 | $300,576 | $318,610 | $337,727 | $357,990 |
| 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 | $190,705 | $202,147 | $214,276 | $227,132 | $240,760 | $255,206 | $270,518 | $286,749 | $303,954 | $322,191 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $211,894 | $224,608 | $238,084 | $252,369 | $267,511 | $283,562 | $300,576 | $318,610 | $337,727 | $357,990 |
| - Closing Costs | ($14,833) | ($15,723) | ($16,666) | ($17,666) | ($18,726) | ($19,849) | ($21,040) | ($22,303) | ($23,641) | ($25,059) |
| = Proceeds After Sale | $197,061 | $208,885 | $221,418 | $234,703 | $248,786 | $263,713 | $279,535 | $296,308 | $314,086 | $332,931 |
| + Cumulative Cash Flow | $8,853 | $17,972 | $27,364 | $37,038 | $47,002 | $57,265 | $67,836 | $78,724 | $89,939 | $101,491 |
| - Initial Cash Invested | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) | ($207,896) |
| = Net Profit | ($1,982) | $18,961 | $40,886 | $63,845 | $87,892 | $113,082 | $139,476 | $167,136 | $196,129 | $226,526 |
| Internal Rate of Return | -1.0% | 4.6% | 6.4% | 7.3% | 7.9% | 8.2% | 8.4% | 8.6% | 8.7% | 8.8% |
| Return on Investment | -1.0% | 9.1% | 19.7% | 30.7% | 42.3% | 54.4% | 67.1% | 80.4% | 94.3% | 109.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
