| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,000 | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 |
| Vacancy Losses | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Operating Income | $33,120 | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,406) | ($5,568) | ($5,735) | ($5,908) | ($6,085) | ($6,267) | ($6,455) | ($6,649) | ($6,848) | ($7,054) |
| Insurance | ($1,644) | ($1,693) | ($1,744) | ($1,796) | ($1,850) | ($1,905) | ($1,962) | ($2,021) | ($2,082) | ($2,144) |
| 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 | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,770) | ($8,003) | ($8,243) | ($8,490) | ($8,745) | ($9,007) | ($9,277) | ($9,556) | ($9,842) | ($10,138) |
| 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 | $25,350 | $26,111 | $26,894 | $27,701 | $28,532 | $29,388 | $30,270 | $31,178 | $32,113 | $33,076 |
| - Mortgage Payments | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) | ($23,337) |
| = Cash Flow | $2,013 | $2,773 | $3,557 | $4,363 | $5,194 | $6,050 | $6,932 | $7,840 | $8,775 | $9,739 |
| + Principal Reduction | $3,983 | $4,229 | $4,490 | $4,767 | $5,061 | $5,373 | $5,704 | $6,056 | $6,430 | $6,826 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $31,946 | $34,509 | $37,204 | $40,037 | $43,017 | $46,150 | $49,447 | $52,915 | $56,565 | $60,407 |
| Capitalization Rate | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% |
| Cash on Cash Return | 1.5% | 2.0% | 2.6% | 3.2% | 3.8% | 4.4% | 5.1% | 5.8% | 6.4% | 7.1% |
| Return on Equity | 23.1% | 20.3% | 18.3% | 16.7% | 15.5% | 14.6% | 13.8% | 13.1% | 12.5% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Loan Balance | ($320,392) | ($316,163) | ($311,673) | ($306,906) | ($301,845) | ($296,472) | ($290,768) | ($284,712) | ($278,282) | ($271,456) |
| = Equity | $138,058 | $169,794 | $203,442 | $239,115 | $276,937 | $317,037 | $359,552 | $404,627 | $452,418 | $503,086 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.2% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $23,446 | $48,305 | $74,663 | $102,610 | $132,242 | $163,660 | $196,972 | $232,293 | $269,743 | $309,450 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $138,058 | $169,794 | $203,442 | $239,115 | $276,937 | $317,037 | $359,552 | $404,627 | $452,418 | $503,086 |
| - Closing Costs | ($32,092) | ($34,017) | ($36,058) | ($38,221) | ($40,515) | ($42,946) | ($45,522) | ($48,254) | ($51,149) | ($54,218) |
| = Proceeds After Sale | $105,967 | $135,777 | $167,384 | $200,894 | $236,423 | $274,092 | $314,030 | $356,374 | $401,269 | $448,868 |
| + Cumulative Cash Flow | $2,013 | $4,786 | $8,343 | $12,706 | $17,901 | $23,951 | $30,883 | $38,723 | $47,499 | $57,237 |
| - Initial Cash Invested | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) | ($136,238) |
| = Net Profit | ($28,258) | $4,326 | $39,489 | $77,362 | $118,086 | $161,805 | $208,675 | $258,859 | $312,530 | $369,868 |
| Internal Rate of Return | -20.7% | 1.6% | 9.0% | 12.2% | 13.7% | 14.4% | 14.8% | 14.9% | 14.9% | 14.9% |
| Return on Investment | -20.7% | 3.2% | 29.0% | 56.8% | 86.7% | 118.8% | 153.2% | 190.0% | 229.4% | 271.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
