| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $57,600 | $59,328 | $61,108 | $62,941 | $64,829 | $66,774 | $68,777 | $70,841 | $72,966 | $75,155 |
| Vacancy Losses | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Operating Income | $54,720 | $56,362 | $58,052 | $59,794 | $61,588 | $63,435 | $65,339 | $67,299 | $69,318 | $71,397 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,125) | ($3,219) | ($3,315) | ($3,415) | ($3,517) | ($3,623) | ($3,731) | ($3,843) | ($3,959) | ($4,077) |
| Insurance | ($1,875) | ($1,931) | ($1,989) | ($2,049) | ($2,110) | ($2,174) | ($2,239) | ($2,306) | ($2,375) | ($2,446) |
| Management Fees | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| 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 | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Other | ($8,270) | ($8,519) | ($8,774) | ($9,037) | ($9,308) | ($9,588) | ($9,875) | ($10,172) | ($10,477) | ($10,791) |
| Operating Expenses | ($17,350) | ($17,871) | ($18,407) | ($18,959) | ($19,528) | ($20,114) | ($20,717) | ($21,339) | ($21,979) | ($22,638) |
| 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 | $37,370 | $38,491 | $39,645 | $40,835 | $42,060 | $43,322 | $44,621 | $45,960 | $47,339 | $48,759 |
| - Mortgage Payments | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) | ($35,554) |
| = Cash Flow | $1,816 | $2,937 | $4,092 | $5,281 | $6,506 | $7,768 | $9,067 | $10,406 | $11,785 | $13,205 |
| + Principal Reduction | $5,239 | $5,590 | $5,965 | $6,364 | $6,790 | $7,245 | $7,730 | $8,248 | $8,800 | $9,390 |
| + Appreciation | $31,250 | $32,813 | $34,453 | $36,176 | $37,985 | $39,884 | $41,878 | $43,972 | $46,170 | $48,479 |
| = Gross Equity Income | $38,305 | $41,340 | $44,509 | $47,821 | $51,281 | $54,897 | $58,676 | $62,626 | $66,756 | $71,074 |
| Capitalization Rate | 5.7% | 5.6% | 5.5% | 5.4% | 5.3% | 5.2% | 5.1% | 5.0% | 4.9% | 4.8% |
| Cash on Cash Return | 1.0% | 1.7% | 2.4% | 3.0% | 3.8% | 4.5% | 5.2% | 6.0% | 6.8% | 7.6% |
| Return on Equity | 19.9% | 17.9% | 16.4% | 15.2% | 14.3% | 13.5% | 12.9% | 12.3% | 11.9% | 11.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $656,250 | $689,063 | $723,516 | $759,691 | $797,676 | $837,560 | $879,438 | $923,410 | $969,580 | $1,018,059 |
| - Loan Balance | ($463,511) | ($457,920) | ($451,956) | ($445,592) | ($438,801) | ($431,556) | ($423,826) | ($415,578) | ($406,778) | ($397,388) |
| = Equity | $192,739 | $231,142 | $271,560 | $314,100 | $358,875 | $406,003 | $455,612 | $507,832 | $562,802 | $620,671 |
| Loan-to-Value Ratio | 70.6% | 66.5% | 62.5% | 58.7% | 55.0% | 51.5% | 48.2% | 45.0% | 42.0% | 39.0% |
| Potential Cash-Out Refi | $127,114 | $162,236 | $199,208 | $238,131 | $279,107 | $322,247 | $367,668 | $415,491 | $465,844 | $518,865 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $192,739 | $231,142 | $271,560 | $314,100 | $358,875 | $406,003 | $455,612 | $507,832 | $562,802 | $620,671 |
| - Closing Costs | ($45,938) | ($48,234) | ($50,646) | ($53,178) | ($55,837) | ($58,629) | ($61,561) | ($64,639) | ($67,871) | ($71,264) |
| = Proceeds After Sale | $146,802 | $182,908 | $220,914 | $260,921 | $303,037 | $347,374 | $394,051 | $443,193 | $494,932 | $549,407 |
| + Cumulative Cash Flow | $1,816 | $4,753 | $8,844 | $14,125 | $20,631 | $28,399 | $37,466 | $47,872 | $59,657 | $72,862 |
| - Initial Cash Invested | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) | ($173,438) |
| = Net Profit | ($24,820) | $14,223 | $56,320 | $101,609 | $150,231 | $202,336 | $258,080 | $317,628 | $381,151 | $448,832 |
| Internal Rate of Return | -14.3% | 4.0% | 9.9% | 12.4% | 13.6% | 14.2% | 14.4% | 14.5% | 14.5% | 14.4% |
| Return on Investment | -14.3% | 8.2% | 32.5% | 58.6% | 86.6% | 116.7% | 148.8% | 183.1% | 219.8% | 258.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.