| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $42,480 | $43,754 | $45,067 | $46,419 | $47,812 | $49,246 | $50,723 | $52,245 | $53,812 | $55,427 |
| Vacancy Losses | ($3,398) | ($3,500) | ($3,605) | ($3,714) | ($3,825) | ($3,940) | ($4,058) | ($4,180) | ($4,305) | ($4,434) |
| Operating Income | $39,082 | $40,254 | $41,462 | $42,706 | $43,987 | $45,306 | $46,665 | $48,065 | $49,507 | $50,993 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($7,650) | ($7,880) | ($8,116) | ($8,359) | ($8,610) | ($8,868) | ($9,135) | ($9,409) | ($9,691) | ($9,982) |
| Insurance | ($1,275) | ($1,313) | ($1,353) | ($1,393) | ($1,435) | ($1,478) | ($1,522) | ($1,568) | ($1,615) | ($1,664) |
| Management Fees | ($3,127) | ($3,220) | ($3,317) | ($3,416) | ($3,519) | ($3,625) | ($3,733) | ($3,845) | ($3,961) | ($4,079) |
| 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 | ($850) | ($875) | ($901) | ($928) | ($956) | ($985) | ($1,014) | ($1,045) | ($1,076) | ($1,109) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($12,901) | ($13,288) | ($13,687) | ($14,097) | ($14,520) | ($14,956) | ($15,405) | ($15,867) | ($16,343) | ($16,833) |
| 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 | $26,180 | $26,966 | $27,775 | $28,608 | $29,466 | $30,350 | $31,261 | $32,199 | $33,165 | $34,160 |
| - Mortgage Payments | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) | ($24,177) |
| = Cash Flow | $2,004 | $2,789 | $3,598 | $4,431 | $5,290 | $6,174 | $7,084 | $8,022 | $8,988 | $9,983 |
| + Principal Reduction | $3,563 | $3,801 | $4,056 | $4,328 | $4,617 | $4,927 | $5,257 | $5,609 | $5,984 | $6,385 |
| + Appreciation | $25,500 | $27,030 | $28,652 | $30,371 | $32,193 | $34,125 | $36,172 | $38,343 | $40,643 | $43,082 |
| = Gross Equity Income | $31,067 | $33,621 | $36,306 | $39,130 | $42,100 | $45,225 | $48,513 | $51,973 | $55,615 | $59,450 |
| Capitalization Rate | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% |
| Cash on Cash Return | 1.6% | 2.3% | 2.9% | 3.6% | 4.3% | 5.1% | 5.8% | 6.6% | 7.4% | 8.2% |
| Return on Equity | 23.0% | 20.2% | 18.3% | 16.8% | 15.6% | 14.6% | 13.8% | 13.2% | 12.6% | 12.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $450,500 | $477,530 | $506,182 | $536,553 | $568,746 | $602,871 | $639,043 | $677,385 | $718,029 | $761,110 |
| - Loan Balance | ($315,187) | ($311,386) | ($307,330) | ($303,002) | ($298,385) | ($293,458) | ($288,201) | ($282,593) | ($276,608) | ($270,223) |
| = Equity | $135,313 | $166,144 | $198,852 | $233,550 | $270,361 | $309,413 | $350,841 | $394,793 | $441,420 | $490,887 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $90,263 | $118,391 | $148,234 | $179,895 | $213,486 | $249,125 | $286,937 | $327,054 | $369,617 | $414,776 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $135,313 | $166,144 | $198,852 | $233,550 | $270,361 | $309,413 | $350,841 | $394,793 | $441,420 | $490,887 |
| - Closing Costs | ($31,535) | ($33,427) | ($35,433) | ($37,559) | ($39,812) | ($42,201) | ($44,733) | ($47,417) | ($50,262) | ($53,278) |
| = Proceeds After Sale | $103,778 | $132,717 | $163,419 | $195,992 | $230,549 | $267,212 | $306,108 | $347,376 | $391,158 | $437,609 |
| + Cumulative Cash Flow | $2,004 | $4,793 | $8,391 | $12,823 | $18,112 | $24,286 | $31,370 | $39,392 | $48,380 | $58,363 |
| - Initial Cash Invested | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) | ($122,188) |
| = Net Profit | ($16,406) | $15,323 | $49,623 | $86,627 | $126,474 | $169,310 | $215,291 | $264,581 | $317,351 | $373,785 |
| Internal Rate of Return | -13.4% | 6.1% | 12.2% | 14.7% | 15.7% | 16.2% | 16.3% | 16.3% | 16.2% | 16.0% |
| Return on Investment | -13.4% | 12.5% | 40.6% | 70.9% | 103.5% | 138.6% | 176.2% | 216.5% | 259.7% | 305.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
