| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $48,000 | $49,440 | $50,923 | $52,451 | $54,024 | $55,645 | $57,315 | $59,034 | $60,805 | $62,629 |
| Vacancy Losses | ($3,840) | ($3,955) | ($4,074) | ($4,196) | ($4,322) | ($4,452) | ($4,585) | ($4,723) | ($4,864) | ($5,010) |
| Operating Income | $44,160 | $45,485 | $46,849 | $48,255 | $49,702 | $51,194 | $52,729 | $54,311 | $55,941 | $57,619 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($7,372) | ($7,741) | ($8,128) | ($8,534) | ($8,961) | ($9,409) | ($9,879) | ($10,373) | ($10,892) | ($11,436) |
| Insurance | ($2,425) | ($2,546) | ($2,674) | ($2,807) | ($2,948) | ($3,095) | ($3,250) | ($3,412) | ($3,583) | ($3,762) |
| Management Fees | ($3,533) | ($3,639) | ($3,748) | ($3,860) | ($3,976) | ($4,095) | ($4,218) | ($4,345) | ($4,475) | ($4,610) |
| 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 | ($3,840) | ($4,032) | ($4,234) | ($4,445) | ($4,668) | ($4,901) | ($5,146) | ($5,403) | ($5,673) | ($5,957) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($17,170) | ($17,958) | ($18,783) | ($19,647) | ($20,552) | ($21,500) | ($22,493) | ($23,534) | ($24,623) | ($25,765) |
| 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 | $26,990 | $27,527 | $28,067 | $28,608 | $29,150 | $29,693 | $30,236 | $30,778 | $31,317 | $31,854 |
| - Mortgage Payments | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) | ($27,590) |
| = Cash Flow | ($600) | ($63) | $477 | $1,018 | $1,561 | $2,104 | $2,646 | $3,188 | $3,727 | $4,264 |
| + Principal Reduction | $4,066 | $4,338 | $4,629 | $4,939 | $5,269 | $5,622 | $5,999 | $6,400 | $6,829 | $7,286 |
| + Appreciation | $29,100 | $30,846 | $32,697 | $34,659 | $36,738 | $38,942 | $41,279 | $43,756 | $46,381 | $49,164 |
| = Gross Equity Income | $32,566 | $35,121 | $37,802 | $40,615 | $43,568 | $46,668 | $49,924 | $53,344 | $56,938 | $60,714 |
| Capitalization Rate | 5.2% | 5.1% | 4.9% | 4.7% | 4.5% | 4.3% | 4.1% | 4.0% | 3.8% | 3.7% |
| Cash on Cash Return | -0.4% | 0.0% | 0.3% | 0.7% | 1.1% | 1.5% | 1.9% | 2.3% | 2.7% | 3.1% |
| Return on Equity | 21.1% | 18.5% | 16.7% | 15.2% | 14.1% | 13.2% | 12.5% | 11.8% | 11.3% | 10.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $514,100 | $544,946 | $577,643 | $612,301 | $649,039 | $687,982 | $729,261 | $773,016 | $819,397 | $868,561 |
| - Loan Balance | ($359,684) | ($355,346) | ($350,718) | ($345,779) | ($340,510) | ($334,888) | ($328,889) | ($322,488) | ($315,659) | ($308,373) |
| = Equity | $154,416 | $189,600 | $226,925 | $266,522 | $308,530 | $353,094 | $400,372 | $450,528 | $503,738 | $560,188 |
| 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 | $25,891 | $53,363 | $82,514 | $113,447 | $146,270 | $181,099 | $218,057 | $257,274 | $298,889 | $343,048 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $154,416 | $189,600 | $226,925 | $266,522 | $308,530 | $353,094 | $400,372 | $450,528 | $503,738 | $560,188 |
| - Closing Costs | ($35,987) | ($38,146) | ($40,435) | ($42,861) | ($45,433) | ($48,159) | ($51,048) | ($54,111) | ($57,358) | ($60,799) |
| = Proceeds After Sale | $118,429 | $151,454 | $186,490 | $223,661 | $263,097 | $304,935 | $349,324 | $396,417 | $446,380 | $499,389 |
| + Cumulative Cash Flow | ($600) | ($662) | ($185) | $833 | $2,393 | $4,497 | $7,143 | $10,331 | $14,059 | $18,323 |
| - Initial Cash Invested | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) | ($139,438) |
| = Net Profit | ($21,608) | $11,354 | $46,867 | $85,056 | $126,053 | $169,995 | $217,029 | $267,310 | $321,001 | $378,274 |
| Internal Rate of Return | -15.5% | 4.0% | 10.1% | 12.6% | 13.7% | 14.2% | 14.4% | 14.4% | 14.3% | 14.2% |
| Return on Investment | -15.5% | 8.1% | 33.6% | 61.0% | 90.4% | 121.9% | 155.6% | 191.7% | 230.2% | 271.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.