| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $30,000 | $30,900 | $31,827 | $32,782 | $33,765 | $34,778 | $35,822 | $36,896 | $38,003 | $39,143 |
| Vacancy Losses | ($2,400) | ($2,472) | ($2,546) | ($2,623) | ($2,701) | ($2,782) | ($2,866) | ($2,952) | ($3,040) | ($3,131) |
| Operating Income | $27,600 | $28,428 | $29,281 | $30,159 | $31,064 | $31,996 | $32,956 | $33,945 | $34,963 | $36,012 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($6,749) | ($6,951) | ($7,159) | ($7,374) | ($7,595) | ($7,823) | ($8,058) | ($8,300) | ($8,549) | ($8,805) |
| Insurance | ($1,800) | ($1,854) | ($1,909) | ($1,966) | ($2,025) | ($2,086) | ($2,149) | ($2,213) | ($2,280) | ($2,348) |
| 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 | ($120) | ($124) | ($127) | ($131) | ($135) | ($139) | ($143) | ($148) | ($152) | ($157) |
| Maintenance | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($9,868) | ($10,164) | ($10,469) | ($10,783) | ($11,107) | ($11,440) | ($11,783) | ($12,137) | ($12,501) | ($12,876) |
| 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 | $17,732 | $18,264 | $18,812 | $19,376 | $19,957 | $20,556 | $21,173 | $21,808 | $22,462 | $23,136 |
| - Mortgage Payments | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) | ($25,593) |
| = Cash Flow | ($7,861) | ($7,329) | ($6,781) | ($6,217) | ($5,636) | ($5,037) | ($4,420) | ($3,785) | ($3,131) | ($2,457) |
| + Principal Reduction | $3,772 | $4,024 | $4,294 | $4,581 | $4,888 | $5,215 | $5,565 | $5,937 | $6,335 | $6,759 |
| + Appreciation | $26,994 | $28,614 | $30,330 | $32,150 | $34,079 | $36,124 | $38,292 | $40,589 | $43,024 | $45,606 |
| = Gross Equity Income | $22,904 | $25,309 | $27,843 | $30,514 | $33,332 | $36,302 | $39,436 | $42,741 | $46,228 | $49,908 |
| Capitalization Rate | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% | 3.2% | 3.1% | 3.0% | 3.0% | 2.9% |
| Cash on Cash Return | -6.5% | -6.1% | -5.6% | -5.2% | -4.7% | -4.2% | -3.7% | -3.1% | -2.6% | -2.0% |
| Return on Equity | 16.0% | 14.4% | 13.2% | 12.3% | 11.6% | 11.1% | 10.6% | 10.2% | 9.9% | 9.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $476,894 | $505,508 | $535,838 | $567,988 | $602,068 | $638,192 | $676,483 | $717,072 | $760,097 | $805,702 |
| - Loan Balance | ($333,653) | ($329,629) | ($325,336) | ($320,755) | ($315,867) | ($310,651) | ($305,087) | ($299,149) | ($292,814) | ($286,055) |
| = Equity | $143,241 | $175,878 | $210,502 | $247,234 | $286,201 | $327,541 | $371,397 | $417,923 | $467,282 | $519,647 |
| 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 | $95,551 | $125,328 | $156,919 | $190,435 | $225,994 | $263,721 | $303,748 | $346,216 | $391,273 | $439,077 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $143,241 | $175,878 | $210,502 | $247,234 | $286,201 | $327,541 | $371,397 | $417,923 | $467,282 | $519,647 |
| - Closing Costs | ($33,383) | ($35,386) | ($37,509) | ($39,759) | ($42,145) | ($44,673) | ($47,354) | ($50,195) | ($53,207) | ($56,399) |
| = Proceeds After Sale | $109,858 | $140,493 | $172,994 | $207,475 | $244,056 | $282,867 | $324,043 | $367,728 | $414,076 | $463,248 |
| + Cumulative Cash Flow | ($7,861) | ($15,190) | ($21,972) | ($28,189) | ($33,825) | ($38,862) | ($43,282) | ($47,067) | ($50,198) | ($52,655) |
| - Initial Cash Invested | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) | ($120,348) |
| = Net Profit | ($18,352) | $4,954 | $30,674 | $58,938 | $89,884 | $123,657 | $160,413 | $200,313 | $243,529 | $290,245 |
| Internal Rate of Return | -15.2% | 2.0% | 7.4% | 9.7% | 10.8% | 11.4% | 11.6% | 11.7% | 11.7% | 11.7% |
| Return on Investment | -15.2% | 4.1% | 25.5% | 49.0% | 74.7% | 102.7% | 133.3% | 166.4% | 202.4% | 241.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
