| 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 | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) | ($23,967) |
| = Cash Flow | $1,383 | $2,144 | $2,927 | $3,734 | $4,565 | $5,421 | $6,303 | $7,211 | $8,146 | $9,110 |
| + Principal Reduction | $3,801 | $4,045 | $4,306 | $4,583 | $4,877 | $5,191 | $5,525 | $5,880 | $6,259 | $6,661 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $31,134 | $33,696 | $36,390 | $39,224 | $42,204 | $45,339 | $48,638 | $52,110 | $55,765 | $59,613 |
| 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 | 1.1% | 1.7% | 2.3% | 2.9% | 3.5% | 4.2% | 4.9% | 5.6% | 6.3% | 7.0% |
| Return on Equity | 22.6% | 19.9% | 17.9% | 16.5% | 15.3% | 14.4% | 13.6% | 12.9% | 12.4% | 11.9% |
| 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 | ($320,574) | ($316,529) | ($312,223) | ($307,640) | ($302,763) | ($297,572) | ($292,047) | ($286,166) | ($279,908) | ($273,247) |
| = Equity | $137,876 | $169,428 | $202,892 | $238,381 | $276,020 | $315,938 | $358,273 | $403,173 | $450,792 | $501,295 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.6% | 56.3% | 52.3% | 48.5% | 44.9% | 41.5% | 38.3% | 35.3% |
| Potential Cash-Out Refi | $23,263 | $47,939 | $74,113 | $101,876 | $131,324 | $162,560 | $195,693 | $230,838 | $268,117 | $307,660 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $137,876 | $169,428 | $202,892 | $238,381 | $276,020 | $315,938 | $358,273 | $403,173 | $450,792 | $501,295 |
| - 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 | $105,784 | $135,411 | $166,834 | $200,159 | $235,505 | $272,992 | $312,751 | $354,919 | $399,643 | $447,077 |
| + Cumulative Cash Flow | $1,383 | $3,527 | $6,455 | $10,189 | $14,754 | $20,175 | $26,478 | $33,689 | $41,835 | $50,945 |
| - Initial Cash Invested | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) |
| = Net Profit | ($22,582) | $9,189 | $43,538 | $80,598 | $120,509 | $163,417 | $209,479 | $258,858 | $311,728 | $368,272 |
| Internal Rate of Return | -17.4% | 3.5% | 10.2% | 13.1% | 14.4% | 15.0% | 15.2% | 15.3% | 15.2% | 15.1% |
| Return on Investment | -17.4% | 7.1% | 33.6% | 62.1% | 92.9% | 125.9% | 161.4% | 199.5% | 240.3% | 283.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
