| 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 | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) | ($24,824) |
| = Cash Flow | ($2,013) | ($1,329) | ($624) | $102 | $850 | $1,620 | $2,414 | $3,231 | $4,072 | $4,939 |
| + Principal Reduction | $3,168 | $3,396 | $3,642 | $3,904 | $4,186 | $4,488 | $4,812 | $5,160 | $5,532 | $5,932 |
| + Appreciation | $24,900 | $26,394 | $27,978 | $29,656 | $31,436 | $33,322 | $35,321 | $37,440 | $39,687 | $42,068 |
| = Gross Equity Income | $26,055 | $28,462 | $30,995 | $33,663 | $36,472 | $39,431 | $42,547 | $45,831 | $49,291 | $52,939 |
| 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 | -1.6% | -1.1% | -0.5% | 0.1% | 0.7% | 1.3% | 1.9% | 2.6% | 3.3% | 4.0% |
| Return on Equity | 19.8% | 17.6% | 16.0% | 14.8% | 13.9% | 13.1% | 12.5% | 12.0% | 11.5% | 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 | ($308,082) | ($304,686) | ($301,044) | ($297,140) | ($292,954) | ($288,465) | ($283,653) | ($278,493) | ($272,961) | ($267,029) |
| = Equity | $131,818 | $161,608 | $193,227 | $226,788 | $262,410 | $300,220 | $340,354 | $382,954 | $428,173 | $476,173 |
| Loan-to-Value Ratio | 70.0% | 65.3% | 60.9% | 56.7% | 52.7% | 49.0% | 45.5% | 42.1% | 38.9% | 35.9% |
| Potential Cash-Out Refi | $21,843 | $45,035 | $69,659 | $95,806 | $123,569 | $153,049 | $184,352 | $217,592 | $252,890 | $290,372 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $131,818 | $161,608 | $193,227 | $226,788 | $262,410 | $300,220 | $340,354 | $382,954 | $428,173 | $476,173 |
| - 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 | $101,025 | $128,968 | $158,628 | $190,113 | $223,535 | $259,012 | $296,673 | $336,653 | $379,094 | $424,149 |
| + Cumulative Cash Flow | ($2,013) | ($3,342) | ($3,965) | ($3,863) | ($3,013) | ($1,393) | $1,021 | $4,252 | $8,324 | $13,263 |
| - Initial Cash Invested | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) | ($124,500) |
| = Net Profit | ($25,488) | $1,126 | $30,163 | $61,750 | $96,022 | $133,120 | $173,194 | $216,405 | $262,918 | $312,912 |
| Internal Rate of Return | -20.5% | 0.4% | 7.4% | 10.4% | 11.9% | 12.7% | 13.1% | 13.3% | 13.3% | 13.3% |
| Return on Investment | -20.5% | 0.9% | 24.2% | 49.6% | 77.1% | 106.9% | 139.1% | 173.8% | 211.2% | 251.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
