| 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 | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) |
| = Cash Flow | $57 | $749 | $1,462 | $2,197 | $2,954 | $3,733 | $4,536 | $5,363 | $6,214 | $7,092 |
| + 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 | $30,084 | $32,579 | $35,204 | $37,965 | $40,869 | $43,925 | $47,142 | $50,527 | $54,091 | $57,843 |
| 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 | 0.0% | 0.6% | 1.1% | 1.7% | 2.3% | 2.9% | 3.5% | 4.1% | 4.8% | 5.5% |
| Return on Equity | 21.8% | 19.2% | 17.3% | 15.9% | 14.7% | 13.8% | 13.1% | 12.5% | 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 | ($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 | $57 | $806 | $2,268 | $4,465 | $7,419 | $11,152 | $15,688 | $21,050 | $27,265 | $34,356 |
| - 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 | ($23,633) | $7,021 | $40,184 | $75,986 | $114,562 | $156,056 | $200,621 | $248,417 | $299,612 | $354,386 |
| Internal Rate of Return | -18.2% | 2.7% | 9.4% | 12.3% | 13.6% | 14.2% | 14.5% | 14.6% | 14.6% | 14.5% |
| Return on Investment | -18.2% | 5.4% | 31.0% | 58.6% | 88.3% | 120.3% | 154.6% | 191.5% | 230.9% | 273.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.