| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $27,600 | $28,428 | $29,281 | $30,159 | $31,064 | $31,996 | $32,956 | $33,945 | $34,963 | $36,012 |
| Vacancy Losses | ($2,208) | ($2,274) | ($2,342) | ($2,413) | ($2,485) | ($2,560) | ($2,636) | ($2,716) | ($2,797) | ($2,881) |
| Operating Income | $25,392 | $26,154 | $26,938 | $27,747 | $28,579 | $29,436 | $30,319 | $31,229 | $32,166 | $33,131 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,660) | ($1,710) | ($1,761) | ($1,814) | ($1,868) | ($1,924) | ($1,982) | ($2,042) | ($2,103) | ($2,166) |
| Insurance | ($830) | ($855) | ($881) | ($907) | ($934) | ($962) | ($991) | ($1,021) | ($1,051) | ($1,083) |
| 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 | ($1,428) | ($1,471) | ($1,515) | ($1,560) | ($1,607) | ($1,655) | ($1,705) | ($1,756) | ($1,809) | ($1,863) |
| Maintenance | ($552) | ($569) | ($586) | ($603) | ($621) | ($640) | ($659) | ($679) | ($699) | ($720) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,470) | ($4,604) | ($4,742) | ($4,884) | ($5,031) | ($5,182) | ($5,337) | ($5,498) | ($5,662) | ($5,832) |
| 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 | $20,922 | $21,550 | $22,196 | $22,862 | $23,548 | $24,254 | $24,982 | $25,731 | $26,503 | $27,298 |
| - Mortgage Payments | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) | ($19,246) |
| = Cash Flow | $1,676 | $2,304 | $2,951 | $3,616 | $4,302 | $5,009 | $5,736 | $6,486 | $7,258 | $8,053 |
| + 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 | $26,576 | $28,698 | $30,928 | $33,273 | $35,738 | $38,331 | $41,057 | $43,926 | $46,945 | $50,121 |
| Capitalization Rate | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | 1.2% | 1.6% | 2.1% | 2.5% | 3.0% | 3.5% | 4.0% | 4.5% | 5.1% | 5.6% |
| Return on Equity | 17.8% | 16.3% | 15.2% | 14.3% | 13.5% | 12.9% | 12.3% | 11.8% | 11.4% | 11.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $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 | $105,410 | $129,165 | $154,344 | $181,035 | $209,327 | $239,317 | $271,106 | $304,802 | $340,520 | $378,382 |
| 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 | $1,676 | $3,980 | $6,931 | $10,547 | $14,850 | $19,858 | $25,595 | $32,081 | $39,338 | $47,391 |
| - Initial Cash Invested | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) | ($142,760) |
| = Net Profit | ($22,477) | $4,374 | $33,344 | $64,540 | $98,078 | $134,076 | $172,661 | $213,966 | $258,133 | $305,309 |
| Internal Rate of Return | -15.7% | 1.5% | 7.3% | 9.9% | 11.3% | 12.0% | 12.4% | 12.6% | 12.7% | 12.8% |
| Return on Investment | -15.7% | 3.1% | 23.4% | 45.2% | 68.7% | 93.9% | 120.9% | 149.9% | 180.8% | 213.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
