| 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 | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) |
| = Cash Flow | ($629) | $129 | $909 | $1,712 | $2,540 | $3,392 | $4,270 | $5,174 | $6,105 | $7,065 |
| + Principal Reduction | $3,301 | $3,540 | $3,795 | $4,069 | $4,363 | $4,678 | $5,016 | $5,378 | $5,766 | $6,182 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $28,623 | $31,175 | $33,861 | $36,688 | $39,664 | $42,797 | $46,096 | $49,571 | $53,231 | $57,088 |
| 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 | -0.5% | 0.1% | 0.7% | 1.3% | 2.0% | 2.6% | 3.3% | 4.0% | 4.7% | 5.4% |
| Return on Equity | 20.8% | 18.5% | 16.8% | 15.5% | 14.5% | 13.7% | 13.0% | 12.4% | 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 | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Loan Balance | ($321,074) | ($317,534) | ($313,739) | ($309,669) | ($305,306) | ($300,629) | ($295,613) | ($290,236) | ($284,470) | ($278,288) |
| = Equity | $137,376 | $168,423 | $201,376 | $236,352 | $273,476 | $312,881 | $354,707 | $399,104 | $446,230 | $496,254 |
| 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 | $22,764 | $46,934 | $72,597 | $99,847 | $128,780 | $159,504 | $192,127 | $226,769 | $263,555 | $302,618 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $137,376 | $168,423 | $201,376 | $236,352 | $273,476 | $312,881 | $354,707 | $399,104 | $446,230 | $496,254 |
| - 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 | $105,285 | $134,406 | $165,318 | $198,130 | $232,961 | $269,935 | $309,185 | $350,850 | $395,081 | $442,036 |
| + Cumulative Cash Flow | ($629) | ($500) | $409 | $2,121 | $4,661 | $8,052 | $12,322 | $17,496 | $23,601 | $30,666 |
| - 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 | ($25,094) | $4,156 | $35,977 | $70,501 | $107,872 | $148,238 | $191,757 | $238,596 | $288,932 | $342,952 |
| Internal Rate of Return | -19.3% | 1.6% | 8.5% | 11.4% | 12.9% | 13.6% | 13.9% | 14.1% | 14.1% | 14.1% |
| Return on Investment | -19.3% | 3.2% | 27.7% | 54.3% | 83.1% | 114.2% | 147.8% | 183.9% | 222.7% | 264.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
