| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $35,880 | $36,956 | $38,065 | $39,207 | $40,383 | $41,595 | $42,843 | $44,128 | $45,452 | $46,815 |
| Vacancy Losses | ($2,870) | ($2,957) | ($3,045) | ($3,137) | ($3,231) | ($3,328) | ($3,427) | ($3,530) | ($3,636) | ($3,745) |
| Operating Income | $33,010 | $34,000 | $35,020 | $36,070 | $37,153 | $38,267 | $39,415 | $40,598 | $41,816 | $43,070 |
| 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 | ($718) | ($739) | ($761) | ($784) | ($808) | ($832) | ($857) | ($883) | ($909) | ($936) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,767) | ($8,000) | ($8,240) | ($8,488) | ($8,742) | ($9,004) | ($9,275) | ($9,553) | ($9,839) | ($10,135) |
| 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 | $25,242 | $26,000 | $26,780 | $27,583 | $28,410 | $29,263 | $30,141 | $31,045 | $31,976 | $32,935 |
| - Mortgage Payments | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) |
| = Cash Flow | $2,217 | $2,974 | $3,754 | $4,557 | $5,385 | $6,237 | $7,115 | $8,019 | $8,951 | $9,910 |
| + Principal Reduction | $4,077 | $4,323 | $4,584 | $4,861 | $5,154 | $5,465 | $5,795 | $6,145 | $6,516 | $6,909 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $32,244 | $34,804 | $37,496 | $40,325 | $43,300 | $46,429 | $49,721 | $53,183 | $56,827 | $60,661 |
| Capitalization Rate | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.3% |
| Cash on Cash Return | 1.7% | 2.3% | 2.9% | 3.5% | 4.2% | 4.8% | 5.5% | 6.2% | 6.9% | 7.6% |
| Return on Equity | 23.3% | 20.5% | 18.4% | 16.8% | 15.6% | 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 | ($320,298) | ($315,975) | ($311,390) | ($306,529) | ($301,375) | ($295,910) | ($290,114) | ($283,969) | ($277,453) | ($270,544) |
| = Equity | $138,152 | $169,982 | $203,724 | $239,492 | $277,408 | $317,600 | $360,206 | $405,370 | $453,246 | $503,998 |
| Loan-to-Value Ratio | 69.9% | 65.0% | 60.5% | 56.1% | 52.1% | 48.2% | 44.6% | 41.2% | 38.0% | 34.9% |
| Potential Cash-Out Refi | $23,540 | $48,493 | $74,946 | $102,987 | $132,712 | $164,223 | $197,626 | $233,035 | $270,572 | $310,362 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $138,152 | $169,982 | $203,724 | $239,492 | $277,408 | $317,600 | $360,206 | $405,370 | $453,246 | $503,998 |
| - 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 | $106,061 | $135,965 | $167,666 | $201,270 | $236,893 | $274,654 | $314,683 | $357,116 | $402,097 | $449,780 |
| + Cumulative Cash Flow | $2,217 | $5,191 | $8,944 | $13,502 | $18,887 | $25,124 | $32,239 | $40,258 | $49,208 | $59,118 |
| - 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 | ($21,473) | $11,406 | $46,861 | $85,022 | $126,029 | $170,028 | $217,172 | $267,624 | $321,556 | $379,148 |
| Internal Rate of Return | -16.5% | 4.3% | 11.0% | 13.7% | 15.0% | 15.6% | 15.8% | 15.8% | 15.7% | 15.6% |
| Return on Investment | -16.5% | 8.8% | 36.1% | 65.5% | 97.1% | 131.0% | 167.4% | 206.3% | 247.8% | 292.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.