| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $308,400 | $317,652 | $327,182 | $336,997 | $347,107 | $357,520 | $368,246 | $379,293 | $390,672 | $402,392 |
| Vacancy Losses | ($24,672) | ($25,412) | ($26,175) | ($26,960) | ($27,769) | ($28,602) | ($29,460) | ($30,343) | ($31,254) | ($32,191) |
| Operating Income | $283,728 | $292,240 | $301,007 | $310,037 | $319,338 | $328,919 | $338,786 | $348,950 | $359,418 | $370,201 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,750) | ($4,893) | ($5,039) | ($5,190) | ($5,346) | ($5,507) | ($5,672) | ($5,842) | ($6,017) | ($6,198) |
| Insurance | ($7,500) | ($7,725) | ($7,957) | ($8,195) | ($8,441) | ($8,695) | ($8,955) | ($9,224) | ($9,501) | ($9,786) |
| Management Fees | ($8,512) | ($8,767) | ($9,030) | ($9,301) | ($9,580) | ($9,868) | ($10,164) | ($10,468) | ($10,783) | ($11,106) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($76,500) | ($78,795) | ($81,159) | ($83,594) | ($86,101) | ($88,684) | ($91,345) | ($94,085) | ($96,908) | ($99,815) |
| Maintenance | ($9,252) | ($9,530) | ($9,815) | ($10,110) | ($10,413) | ($10,726) | ($11,047) | ($11,379) | ($11,720) | ($12,072) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($106,514) | ($109,709) | ($113,001) | ($116,391) | ($119,882) | ($123,479) | ($127,183) | ($130,999) | ($134,929) | ($138,976) |
| 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 | $177,214 | $182,531 | $188,007 | $193,647 | $199,456 | $205,440 | $211,603 | $217,951 | $224,490 | $231,224 |
| - Mortgage Payments | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) | ($142,215) |
| = Cash Flow | $34,999 | $40,315 | $45,791 | $51,431 | $57,241 | $63,224 | $69,388 | $75,736 | $82,274 | $89,009 |
| + Principal Reduction | $20,957 | $22,361 | $23,859 | $25,456 | $27,161 | $28,980 | $30,921 | $32,992 | $35,202 | $37,559 |
| + Appreciation | $150,000 | $159,000 | $168,540 | $178,652 | $189,372 | $200,734 | $212,778 | $225,545 | $239,077 | $253,422 |
| = Gross Equity Income | $205,956 | $221,676 | $238,190 | $255,540 | $273,774 | $292,939 | $313,087 | $334,272 | $356,553 | $379,990 |
| Capitalization Rate | 6.7% | 6.5% | 6.3% | 6.1% | 6.0% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% |
| Cash on Cash Return | 4.9% | 5.6% | 6.4% | 7.2% | 8.0% | 8.8% | 9.7% | 10.5% | 11.4% | 12.4% |
| Return on Equity | 25.9% | 22.7% | 20.4% | 18.6% | 17.2% | 16.1% | 15.2% | 14.4% | 13.7% | 13.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $2,650,000 | $2,809,000 | $2,977,540 | $3,156,192 | $3,345,564 | $3,546,298 | $3,759,076 | $3,984,620 | $4,223,697 | $4,477,119 |
| - Loan Balance | ($1,854,043) | ($1,831,682) | ($1,807,823) | ($1,782,367) | ($1,755,206) | ($1,726,225) | ($1,695,304) | ($1,662,312) | ($1,627,111) | ($1,589,552) |
| = Equity | $795,957 | $977,318 | $1,169,717 | $1,373,826 | $1,590,358 | $1,820,073 | $2,063,772 | $2,322,308 | $2,596,587 | $2,887,568 |
| 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 | $530,957 | $696,418 | $871,963 | $1,058,206 | $1,255,802 | $1,465,443 | $1,687,864 | $1,923,846 | $2,174,217 | $2,439,856 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $795,957 | $977,318 | $1,169,717 | $1,373,826 | $1,590,358 | $1,820,073 | $2,063,772 | $2,322,308 | $2,596,587 | $2,887,568 |
| - Closing Costs | ($185,500) | ($196,630) | ($208,428) | ($220,933) | ($234,189) | ($248,241) | ($263,135) | ($278,923) | ($295,659) | ($313,398) |
| = Proceeds After Sale | $610,457 | $780,688 | $961,289 | $1,152,892 | $1,356,169 | $1,571,832 | $1,800,636 | $2,043,385 | $2,300,928 | $2,574,169 |
| + Cumulative Cash Flow | $34,999 | $75,314 | $121,105 | $172,537 | $229,777 | $293,002 | $362,389 | $438,125 | $520,399 | $609,408 |
| - Initial Cash Invested | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) | ($718,750) |
| = Net Profit | ($73,294) | $137,252 | $363,644 | $606,679 | $867,196 | $1,146,083 | $1,444,276 | $1,762,760 | $2,102,577 | $2,464,827 |
| Internal Rate of Return | -10.2% | 9.3% | 15.2% | 17.5% | 18.4% | 18.7% | 18.8% | 18.7% | 18.5% | 18.2% |
| Return on Investment | -10.2% | 19.1% | 50.6% | 84.4% | 120.7% | 159.5% | 200.9% | 245.3% | 292.5% | 342.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
