| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $33,480 | $34,484 | $35,519 | $36,584 | $37,682 | $38,812 | $39,977 | $41,176 | $42,411 | $43,684 |
| Vacancy Losses | ($2,678) | ($2,759) | ($2,842) | ($2,927) | ($3,015) | ($3,105) | ($3,198) | ($3,294) | ($3,393) | ($3,495) |
| Operating Income | $30,802 | $31,726 | $32,677 | $33,658 | $34,667 | $35,707 | $36,779 | $37,882 | $39,019 | $40,189 |
| 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 | ($670) | ($690) | ($710) | ($732) | ($754) | ($776) | ($800) | ($824) | ($848) | ($874) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,719) | ($7,951) | ($8,189) | ($8,435) | ($8,688) | ($8,949) | ($9,217) | ($9,494) | ($9,779) | ($10,072) |
| 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 | $23,082 | $23,775 | $24,488 | $25,223 | $25,979 | $26,759 | $27,561 | $28,388 | $29,240 | $30,117 |
| - Mortgage Payments | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) | ($25,871) |
| = Cash Flow | ($2,789) | ($2,096) | ($1,383) | ($648) | $108 | $888 | $1,691 | $2,517 | $3,369 | $4,246 |
| + 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 | $26,463 | $28,951 | $31,570 | $34,328 | $37,233 | $40,293 | $43,517 | $46,914 | $50,495 | $54,270 |
| Capitalization Rate | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% |
| Cash on Cash Return | -2.1% | -1.6% | -1.1% | -0.5% | 0.1% | 0.7% | 1.3% | 1.9% | 2.6% | 3.3% |
| Return on Equity | 19.3% | 17.2% | 15.7% | 14.5% | 13.6% | 12.9% | 12.3% | 11.8% | 11.3% | 10.9% |
| 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 | ($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 | ($2,789) | ($4,885) | ($6,267) | ($6,916) | ($6,807) | ($5,919) | ($4,229) | ($1,711) | $1,658 | $5,904 |
| - 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 | ($27,254) | ($228) | $29,300 | $61,465 | $96,404 | $134,266 | $175,206 | $219,389 | $266,989 | $318,190 |
| Internal Rate of Return | -21.0% | -0.1% | 6.9% | 10.0% | 11.5% | 12.3% | 12.7% | 12.9% | 13.0% | 13.0% |
| Return on Investment | -21.0% | -0.2% | 22.6% | 47.4% | 74.3% | 103.5% | 135.0% | 169.1% | 205.8% | 245.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.