| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $272,172 | $280,337 | $288,747 | $297,410 | $306,332 | $315,522 | $324,988 | $334,737 | $344,779 | $355,123 |
| Vacancy Losses | ($21,774) | ($22,427) | ($23,100) | ($23,793) | ($24,507) | ($25,242) | ($25,999) | ($26,779) | ($27,582) | ($28,410) |
| Operating Income | $250,398 | $257,910 | $265,647 | $273,617 | $281,825 | $290,280 | $298,989 | $307,958 | $317,197 | $326,713 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,500) | ($3,605) | ($3,713) | ($3,825) | ($3,939) | ($4,057) | ($4,179) | ($4,305) | ($4,434) | ($4,567) |
| Insurance | ($6,300) | ($6,489) | ($6,684) | ($6,884) | ($7,091) | ($7,303) | ($7,523) | ($7,748) | ($7,981) | ($8,220) |
| Management Fees | ($20,032) | ($20,633) | ($21,252) | ($21,889) | ($22,546) | ($23,222) | ($23,919) | ($24,637) | ($25,376) | ($26,137) |
| 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 | ($13,609) | ($14,017) | ($14,437) | ($14,870) | ($15,317) | ($15,776) | ($16,249) | ($16,737) | ($17,239) | ($17,756) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($43,440) | ($44,744) | ($46,086) | ($47,469) | ($48,893) | ($50,359) | ($51,870) | ($53,426) | ($55,029) | ($56,680) |
| 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 | $206,958 | $213,167 | $219,562 | $226,148 | $232,933 | $239,921 | $247,118 | $254,532 | $262,168 | $270,033 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $206,958 | $213,167 | $219,562 | $226,148 | $232,933 | $239,921 | $247,118 | $254,532 | $262,168 | $270,033 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $210,000 | $222,600 | $235,956 | $250,113 | $265,120 | $281,027 | $297,889 | $315,762 | $334,708 | $354,791 |
| = Gross Equity Income | $416,958 | $435,767 | $455,518 | $476,262 | $498,053 | $520,948 | $545,007 | $570,294 | $596,876 | $624,824 |
| Capitalization Rate | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% |
| Cash on Cash Return | 5.7% | 5.9% | 6.1% | 6.3% | 6.5% | 6.7% | 6.9% | 7.1% | 7.3% | 7.5% |
| Return on Equity | 11.2% | 11.1% | 10.9% | 10.8% | 10.6% | 10.5% | 10.4% | 10.2% | 10.1% | 10.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $3,710,000 | $3,932,600 | $4,168,556 | $4,418,669 | $4,683,790 | $4,964,817 | $5,262,706 | $5,578,468 | $5,913,176 | $6,267,967 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $3,710,000 | $3,932,600 | $4,168,556 | $4,418,669 | $4,683,790 | $4,964,817 | $5,262,706 | $5,578,468 | $5,913,176 | $6,267,967 |
| 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 | $3,339,000 | $3,539,340 | $3,751,700 | $3,976,802 | $4,215,411 | $4,468,335 | $4,736,435 | $5,020,621 | $5,321,859 | $5,641,170 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $3,710,000 | $3,932,600 | $4,168,556 | $4,418,669 | $4,683,790 | $4,964,817 | $5,262,706 | $5,578,468 | $5,913,176 | $6,267,967 |
| - Closing Costs | ($259,700) | ($275,282) | ($291,799) | ($309,307) | ($327,865) | ($347,537) | ($368,389) | ($390,493) | ($413,922) | ($438,758) |
| = Proceeds After Sale | $3,450,300 | $3,657,318 | $3,876,757 | $4,109,363 | $4,355,924 | $4,617,280 | $4,894,316 | $5,187,975 | $5,499,254 | $5,829,209 |
| + Cumulative Cash Flow | $206,958 | $420,124 | $639,686 | $865,834 | $1,098,767 | $1,338,688 | $1,585,806 | $1,840,338 | $2,102,506 | $2,372,539 |
| - Initial Cash Invested | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) | ($3,605,000) |
| = Net Profit | $52,258 | $472,442 | $911,443 | $1,370,197 | $1,849,691 | $2,350,967 | $2,875,123 | $3,423,314 | $3,996,760 | $4,596,748 |
| Internal Rate of Return | 1.4% | 6.5% | 8.2% | 9.0% | 9.5% | 9.8% | 10.0% | 10.1% | 10.2% | 10.3% |
| Return on Investment | 1.4% | 13.1% | 25.3% | 38.0% | 51.3% | 65.2% | 79.8% | 95.0% | 110.9% | 127.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
