| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $33,000 | $33,990 | $35,010 | $36,060 | $37,142 | $38,256 | $39,404 | $40,586 | $41,803 | $43,058 |
| Vacancy Losses | ($2,640) | ($2,719) | ($2,801) | ($2,885) | ($2,971) | ($3,060) | ($3,152) | ($3,247) | ($3,344) | ($3,445) |
| Operating Income | $30,360 | $31,271 | $32,209 | $33,175 | $34,170 | $35,196 | $36,251 | $37,339 | $38,459 | $39,613 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,188) | ($5,343) | ($5,503) | ($5,669) | ($5,839) | ($6,014) | ($6,194) | ($6,380) | ($6,571) | ($6,769) |
| Insurance | ($1,702) | ($1,753) | ($1,805) | ($1,859) | ($1,915) | ($1,973) | ($2,032) | ($2,093) | ($2,155) | ($2,220) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| 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 | ($660) | ($680) | ($700) | ($721) | ($743) | ($765) | ($788) | ($812) | ($836) | ($861) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,549) | ($7,775) | ($8,009) | ($8,249) | ($8,496) | ($8,751) | ($9,014) | ($9,284) | ($9,563) | ($9,850) |
| 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 | $22,811 | $23,495 | $24,200 | $24,926 | $25,674 | $26,444 | $27,238 | $28,055 | $28,896 | $29,763 |
| - Mortgage Payments | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) |
| = Cash Flow | $3,565 | $4,250 | $4,955 | $5,681 | $6,428 | $7,199 | $7,992 | $8,809 | $9,651 | $10,518 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $24,900 | $26,394 | $27,978 | $29,656 | $31,436 | $33,322 | $35,321 | $37,440 | $39,687 | $42,068 |
| = Gross Equity Income | $28,465 | $30,644 | $32,932 | $35,337 | $37,864 | $40,520 | $43,313 | $46,249 | $49,338 | $52,586 |
| Capitalization Rate | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% |
| Cash on Cash Return | 2.3% | 2.7% | 3.2% | 3.6% | 4.1% | 4.6% | 5.1% | 5.6% | 6.2% | 6.7% |
| Return on Equity | 19.1% | 17.4% | 16.2% | 15.1% | 14.3% | 13.6% | 13.0% | 12.5% | 12.0% | 11.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $439,900 | $466,294 | $494,272 | $523,928 | $555,364 | $588,685 | $624,007 | $661,447 | $701,134 | $743,202 |
| - Loan Balance | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) | ($290,500) |
| = Equity | $149,400 | $175,794 | $203,772 | $233,428 | $264,864 | $298,185 | $333,507 | $370,947 | $410,634 | $452,702 |
| 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 | $39,425 | $59,221 | $80,204 | $102,446 | $126,023 | $151,014 | $177,505 | $205,585 | $235,350 | $266,901 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $149,400 | $175,794 | $203,772 | $233,428 | $264,864 | $298,185 | $333,507 | $370,947 | $410,634 | $452,702 |
| - Closing Costs | ($30,793) | ($32,641) | ($34,599) | ($36,675) | ($38,875) | ($41,208) | ($43,680) | ($46,301) | ($49,079) | ($52,024) |
| = Proceeds After Sale | $118,607 | $143,153 | $169,173 | $196,753 | $225,988 | $256,977 | $289,826 | $324,646 | $361,554 | $400,678 |
| + Cumulative Cash Flow | $3,565 | $7,815 | $12,770 | $18,450 | $24,879 | $32,077 | $40,069 | $48,878 | $58,529 | $69,047 |
| - Initial Cash Invested | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) | ($156,870) |
| = Net Profit | ($34,698) | ($5,901) | $25,072 | $58,333 | $93,997 | $132,185 | $173,025 | $216,654 | $263,213 | $312,854 |
| Internal Rate of Return | -22.1% | -1.9% | 5.2% | 8.5% | 10.3% | 11.3% | 11.9% | 12.2% | 12.4% | 12.6% |
| Return on Investment | -22.1% | -3.8% | 16.0% | 37.2% | 59.9% | 84.3% | 110.3% | 138.1% | 167.8% | 199.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
