| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $67,200 | $69,216 | $71,292 | $73,431 | $75,634 | $77,903 | $80,240 | $82,648 | $85,127 | $87,681 |
| Vacancy Losses | ($5,376) | ($5,537) | ($5,703) | ($5,875) | ($6,051) | ($6,232) | ($6,419) | ($6,612) | ($6,810) | ($7,014) |
| Operating Income | $61,824 | $63,679 | $65,589 | $67,557 | $69,583 | $71,671 | $73,821 | $76,036 | $78,317 | $80,666 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,710) | ($1,761) | ($1,814) | ($1,869) | ($1,925) | ($1,982) | ($2,042) | ($2,103) | ($2,166) | ($2,231) |
| Insurance | ($1,140) | ($1,174) | ($1,209) | ($1,246) | ($1,283) | ($1,322) | ($1,361) | ($1,402) | ($1,444) | ($1,487) |
| Management Fees | ($4,946) | ($5,094) | ($5,247) | ($5,405) | ($5,567) | ($5,734) | ($5,906) | ($6,083) | ($6,265) | ($6,453) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($7,572) | ($7,799) | ($8,033) | ($8,274) | ($8,522) | ($8,778) | ($9,041) | ($9,313) | ($9,592) | ($9,880) |
| Maintenance | ($5,376) | ($5,537) | ($5,703) | ($5,875) | ($6,051) | ($6,232) | ($6,419) | ($6,612) | ($6,810) | ($7,014) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($20,744) | ($21,366) | ($22,007) | ($22,667) | ($23,347) | ($24,048) | ($24,769) | ($25,512) | ($26,278) | ($27,066) |
| 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 | $41,080 | $42,312 | $43,582 | $44,889 | $46,236 | $47,623 | $49,052 | $50,523 | $52,039 | $53,600 |
| - Mortgage Payments | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) | ($32,425) |
| = Cash Flow | $8,655 | $9,887 | $11,157 | $12,464 | $13,811 | $15,198 | $16,627 | $18,098 | $19,614 | $21,175 |
| + Principal Reduction | $4,778 | $5,098 | $5,440 | $5,804 | $6,193 | $6,607 | $7,050 | $7,522 | $8,026 | $8,563 |
| + Appreciation | $34,200 | $36,252 | $38,427 | $40,733 | $43,177 | $45,767 | $48,513 | $51,424 | $54,510 | $57,780 |
| = Gross Equity Income | $47,633 | $51,238 | $55,024 | $59,001 | $63,180 | $67,573 | $72,190 | $77,045 | $82,149 | $87,519 |
| Capitalization Rate | 6.8% | 6.6% | 6.4% | 6.2% | 6.1% | 5.9% | 5.7% | 5.6% | 5.4% | 5.3% |
| Cash on Cash Return | 5.3% | 6.0% | 6.8% | 7.6% | 8.4% | 9.3% | 10.1% | 11.0% | 12.0% | 12.9% |
| Return on Equity | 26.2% | 23.0% | 20.6% | 18.8% | 17.4% | 16.3% | 15.3% | 14.6% | 13.9% | 13.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $604,200 | $640,452 | $678,879 | $719,612 | $762,789 | $808,556 | $857,069 | $908,493 | $963,003 | $1,020,783 |
| - Loan Balance | ($422,722) | ($417,623) | ($412,184) | ($406,380) | ($400,187) | ($393,579) | ($386,530) | ($379,007) | ($370,981) | ($362,418) |
| = Equity | $181,478 | $222,829 | $266,695 | $313,232 | $362,602 | $414,976 | $470,540 | $529,486 | $592,022 | $658,365 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $121,058 | $158,783 | $198,807 | $241,271 | $286,323 | $334,121 | $384,833 | $438,637 | $495,721 | $556,287 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $181,478 | $222,829 | $266,695 | $313,232 | $362,602 | $414,976 | $470,540 | $529,486 | $592,022 | $658,365 |
| - Closing Costs | ($42,294) | ($44,832) | ($47,522) | ($50,373) | ($53,395) | ($56,599) | ($59,995) | ($63,595) | ($67,410) | ($71,455) |
| = Proceeds After Sale | $139,184 | $177,997 | $219,174 | $262,859 | $309,206 | $358,377 | $410,545 | $465,892 | $524,611 | $586,910 |
| + Cumulative Cash Flow | $8,655 | $18,542 | $29,699 | $42,163 | $55,974 | $71,172 | $87,799 | $105,897 | $125,511 | $146,686 |
| - Initial Cash Invested | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) | ($163,875) |
| = Net Profit | ($16,036) | $32,664 | $84,998 | $141,148 | $201,306 | $265,675 | $334,469 | $407,914 | $486,248 | $569,722 |
| Internal Rate of Return | -9.8% | 9.7% | 15.6% | 17.9% | 18.8% | 19.1% | 19.1% | 19.0% | 18.8% | 18.5% |
| Return on Investment | -9.8% | 19.9% | 51.9% | 86.1% | 122.8% | 162.1% | 204.1% | 248.9% | 296.7% | 347.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
