Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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Gross Rent | $15,000 | $15,450 | $15,914 | $16,391 | $16,883 | $17,389 | $17,911 | $18,448 | $19,002 | $19,572 |
Vacancy Losses | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
Operating Income | $13,800 | $14,214 | $14,640 | $15,080 | $15,532 | $15,998 | $16,478 | $16,972 | $17,481 | $18,006 |
Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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Property Taxes | ($1,859) | ($1,915) | ($1,972) | ($2,031) | ($2,092) | ($2,155) | ($2,220) | ($2,286) | ($2,355) | ($2,425) |
Insurance | ($728) | ($750) | ($772) | ($796) | ($819) | ($844) | ($869) | ($895) | ($922) | ($950) |
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 | ($300) | ($309) | ($318) | ($328) | ($338) | ($348) | ($358) | ($369) | ($380) | ($391) |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Operating Expenses | ($2,887) | ($2,973) | ($3,063) | ($3,155) | ($3,249) | ($3,347) | ($3,447) | ($3,550) | ($3,657) | ($3,767) |
Income Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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Net Operating Income | $10,913 | $11,241 | $11,578 | $11,925 | $12,283 | $12,651 | $13,031 | $13,422 | $13,824 | $14,239 |
- Mortgage Payments | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) | ($8,927) |
= Cash Flow | $1,987 | $2,314 | $2,651 | $2,999 | $3,356 | $3,725 | $4,104 | $4,495 | $4,898 | $5,313 |
+ Principal Reduction | $1,268 | $1,355 | $1,447 | $1,546 | $1,652 | $1,764 | $1,885 | $2,014 | $2,151 | $2,298 |
+ Appreciation | $9,294 | $9,852 | $10,443 | $11,069 | $11,733 | $12,437 | $13,184 | $13,975 | $14,813 | $15,702 |
= Gross Equity Income | $12,549 | $13,520 | $14,541 | $15,614 | $16,741 | $17,927 | $19,173 | $20,484 | $21,862 | $23,313 |
Capitalization Rate | 6.6% | 6.5% | 6.3% | 6.1% | 5.9% | 5.8% | 5.6% | 5.4% | 5.3% | 5.1% |
Cash on Cash Return | 4.3% | 5.0% | 5.7% | 6.5% | 7.2% | 8.0% | 8.8% | 9.7% | 10.5% | 11.4% |
Return on Equity | 25.5% | 22.4% | 20.1% | 18.4% | 17.0% | 15.9% | 15.0% | 14.3% | 13.6% | 13.1% |
Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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Market Value | $164,194 | $174,046 | $184,488 | $195,558 | $207,291 | $219,729 | $232,912 | $246,887 | $261,700 | $277,402 |
- Loan Balance | ($114,907) | ($113,552) | ($112,105) | ($110,559) | ($108,908) | ($107,143) | ($105,259) | ($103,245) | ($101,094) | ($98,796) |
= Equity | $49,287 | $60,493 | $72,383 | $84,998 | $98,383 | $112,585 | $127,654 | $143,642 | $160,607 | $178,607 |
Loan-to-Value Ratio | 70.0% | 65.2% | 60.8% | 56.5% | 52.5% | 48.8% | 45.2% | 41.8% | 38.6% | 35.6% |
Potential Cash-Out Refi | $8,239 | $16,982 | $26,261 | $36,109 | $46,561 | $57,653 | $69,426 | $81,920 | $95,181 | $109,256 |
Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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Equity | $49,287 | $60,493 | $72,383 | $84,998 | $98,383 | $112,585 | $127,654 | $143,642 | $160,607 | $178,607 |
- Closing Costs | ($11,494) | ($12,183) | ($12,914) | ($13,689) | ($14,510) | ($15,381) | ($16,304) | ($17,282) | ($18,319) | ($19,418) |
= Proceeds After Sale | $37,793 | $48,310 | $59,469 | $71,309 | $83,873 | $97,204 | $111,350 | $126,360 | $142,287 | $159,188 |
+ Cumulative Cash Flow | $1,987 | $4,301 | $6,952 | $9,950 | $13,307 | $17,031 | $21,136 | $25,631 | $30,529 | $35,842 |
- Initial Cash Invested | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) | ($46,470) |
= Net Profit | ($6,690) | $6,141 | $19,951 | $34,790 | $50,710 | $67,766 | $86,016 | $105,521 | $126,347 | $148,560 |
Internal Rate of Return | -14.4% | 6.5% | 13.1% | 15.8% | 17.0% | 17.5% | 17.6% | 17.6% | 17.5% | 17.4% |
Return on Investment | -14.4% | 13.2% | 42.9% | 74.9% | 109.1% | 145.8% | 185.1% | 227.1% | 271.9% | 319.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.