| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $32,400 | $33,372 | $34,373 | $35,404 | $36,466 | $37,560 | $38,687 | $39,848 | $41,043 | $42,275 |
| Vacancy Losses | ($2,592) | ($2,670) | ($2,750) | ($2,832) | ($2,917) | ($3,005) | ($3,095) | ($3,188) | ($3,283) | ($3,382) |
| Operating Income | $29,808 | $30,702 | $31,623 | $32,572 | $33,549 | $34,556 | $35,592 | $36,660 | $37,760 | $38,893 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,558) | ($4,786) | ($5,026) | ($5,277) | ($5,541) | ($5,818) | ($6,109) | ($6,414) | ($6,735) | ($7,072) |
| Insurance | ($1,500) | ($1,574) | ($1,653) | ($1,736) | ($1,823) | ($1,914) | ($2,009) | ($2,110) | ($2,215) | ($2,326) |
| Management Fees | ($2,385) | ($2,456) | ($2,530) | ($2,606) | ($2,684) | ($2,764) | ($2,847) | ($2,933) | ($3,021) | ($3,111) |
| 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 | ($2,592) | ($2,722) | ($2,858) | ($3,001) | ($3,151) | ($3,308) | ($3,474) | ($3,647) | ($3,830) | ($4,021) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($11,035) | ($11,539) | ($12,066) | ($12,619) | ($13,198) | ($13,804) | ($14,439) | ($15,104) | ($15,801) | ($16,530) |
| 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 | $18,773 | $19,164 | $19,557 | $19,953 | $20,351 | $20,751 | $21,153 | $21,556 | $21,959 | $22,362 |
| - Mortgage Payments | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) | ($17,060) |
| = Cash Flow | $1,713 | $2,103 | $2,497 | $2,893 | $3,291 | $3,691 | $4,093 | $4,496 | $4,899 | $5,302 |
| + Principal Reduction | $2,514 | $2,682 | $2,862 | $3,054 | $3,258 | $3,476 | $3,709 | $3,958 | $4,223 | $4,506 |
| + Appreciation | $17,994 | $19,074 | $20,218 | $21,431 | $22,717 | $24,080 | $25,525 | $27,056 | $28,680 | $30,400 |
| = Gross Equity Income | $22,221 | $23,859 | $25,577 | $27,378 | $29,266 | $31,248 | $33,327 | $35,510 | $37,801 | $40,208 |
| Capitalization Rate | 5.9% | 5.7% | 5.5% | 5.3% | 5.1% | 4.9% | 4.7% | 4.5% | 4.3% | 4.2% |
| Cash on Cash Return | 2.0% | 2.4% | 2.9% | 3.4% | 3.8% | 4.3% | 4.7% | 5.2% | 5.7% | 6.1% |
| Return on Equity | 23.3% | 20.4% | 18.2% | 16.6% | 15.3% | 14.3% | 13.5% | 12.7% | 12.1% | 11.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $317,894 | $336,968 | $357,186 | $378,617 | $401,334 | $425,414 | $450,939 | $477,995 | $506,675 | $537,075 |
| - Loan Balance | ($222,411) | ($219,729) | ($216,866) | ($213,813) | ($210,554) | ($207,078) | ($203,369) | ($199,411) | ($195,188) | ($190,682) |
| = Equity | $95,483 | $117,239 | $140,319 | $164,804 | $190,779 | $218,336 | $247,570 | $278,584 | $311,487 | $346,393 |
| 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 | $16,010 | $32,997 | $51,023 | $70,150 | $90,446 | $111,982 | $134,835 | $159,085 | $184,818 | $212,124 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,483 | $117,239 | $140,319 | $164,804 | $190,779 | $218,336 | $247,570 | $278,584 | $311,487 | $346,393 |
| - Closing Costs | ($22,253) | ($23,588) | ($25,003) | ($26,503) | ($28,093) | ($29,779) | ($31,566) | ($33,460) | ($35,467) | ($37,595) |
| = Proceeds After Sale | $73,230 | $93,651 | $115,316 | $138,301 | $162,686 | $188,557 | $216,004 | $245,125 | $276,019 | $308,798 |
| + Cumulative Cash Flow | $1,713 | $3,817 | $6,313 | $9,206 | $12,497 | $16,188 | $20,281 | $24,777 | $29,676 | $34,978 |
| - Initial Cash Invested | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) | ($86,221) |
| = Net Profit | ($11,278) | $11,247 | $35,408 | $61,286 | $88,962 | $118,524 | $150,064 | $183,680 | $219,474 | $257,554 |
| Internal Rate of Return | -13.1% | 6.4% | 12.4% | 14.7% | 15.7% | 16.1% | 16.2% | 16.1% | 16.0% | 15.8% |
| Return on Investment | -13.1% | 13.0% | 41.1% | 71.1% | 103.2% | 137.5% | 174.0% | 213.0% | 254.5% | 298.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.