| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $19,800 | $20,394 | $21,006 | $21,636 | $22,285 | $22,954 | $23,642 | $24,352 | $25,082 | $25,835 |
| Vacancy Losses | ($1,584) | ($1,632) | ($1,680) | ($1,731) | ($1,783) | ($1,836) | ($1,891) | ($1,948) | ($2,007) | ($2,067) |
| Operating Income | $18,216 | $18,762 | $19,325 | $19,905 | $20,502 | $21,117 | $21,751 | $22,403 | $23,075 | $23,768 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,693) | ($1,743) | ($1,796) | ($1,850) | ($1,905) | ($1,962) | ($2,021) | ($2,082) | ($2,144) | ($2,208) |
| Insurance | ($1,094) | ($1,126) | ($1,160) | ($1,195) | ($1,231) | ($1,268) | ($1,306) | ($1,345) | ($1,385) | ($1,427) |
| 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 | ($360) | ($371) | ($382) | ($393) | ($405) | ($417) | ($430) | ($443) | ($456) | ($470) |
| Maintenance | ($990) | ($1,020) | ($1,050) | ($1,082) | ($1,114) | ($1,148) | ($1,182) | ($1,218) | ($1,254) | ($1,292) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,168) | ($5,323) | ($5,483) | ($5,648) | ($5,817) | ($5,991) | ($6,171) | ($6,356) | ($6,547) | ($6,743) |
| 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 | $13,048 | $13,439 | $13,842 | $14,258 | $14,685 | $15,126 | $15,580 | $16,047 | $16,528 | $17,024 |
| - Mortgage Payments | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) | ($12,076) |
| = Cash Flow | $972 | $1,363 | $1,766 | $2,182 | $2,609 | $3,050 | $3,504 | $3,971 | $4,452 | $4,948 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $15,624 | $16,561 | $17,555 | $18,608 | $19,725 | $20,908 | $22,163 | $23,493 | $24,902 | $26,396 |
| = Gross Equity Income | $16,596 | $17,925 | $19,321 | $20,790 | $22,334 | $23,958 | $25,667 | $27,464 | $29,355 | $31,345 |
| Capitalization Rate | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | 1.0% | 1.4% | 1.9% | 2.3% | 2.7% | 3.2% | 3.7% | 4.2% | 4.7% | 5.2% |
| Return on Equity | 17.7% | 16.2% | 15.1% | 14.2% | 13.4% | 12.8% | 12.3% | 11.8% | 11.4% | 11.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $276,024 | $292,585 | $310,141 | $328,749 | $348,474 | $369,382 | $391,545 | $415,038 | $439,940 | $466,337 |
| - Loan Balance | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) | ($182,280) |
| = Equity | $93,744 | $110,305 | $127,861 | $146,469 | $166,194 | $187,102 | $209,265 | $232,758 | $257,660 | $284,057 |
| 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 | $66,142 | $81,047 | $96,847 | $113,594 | $131,347 | $150,164 | $170,111 | $191,254 | $213,666 | $237,423 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $93,744 | $110,305 | $127,861 | $146,469 | $166,194 | $187,102 | $209,265 | $232,758 | $257,660 | $284,057 |
| - Closing Costs | ($19,322) | ($20,481) | ($21,710) | ($23,012) | ($24,393) | ($25,857) | ($27,408) | ($29,053) | ($30,796) | ($32,644) |
| = Proceeds After Sale | $74,422 | $89,824 | $106,151 | $123,457 | $141,801 | $161,246 | $181,857 | $203,705 | $226,864 | $251,413 |
| + Cumulative Cash Flow | $972 | $2,335 | $4,101 | $6,282 | $8,892 | $11,942 | $15,445 | $19,416 | $23,868 | $28,817 |
| - Initial Cash Invested | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) | ($94,916) |
| = Net Profit | ($19,522) | ($2,757) | $15,336 | $34,823 | $55,777 | $78,271 | $102,386 | $128,206 | $155,817 | $185,314 |
| Internal Rate of Return | -20.6% | -1.5% | 5.2% | 8.3% | 9.9% | 10.8% | 11.4% | 11.7% | 11.9% | 12.0% |
| Return on Investment | -20.6% | -2.9% | 16.2% | 36.7% | 58.8% | 82.5% | 107.9% | 135.1% | 164.2% | 195.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
