| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $15,000 | $15,450 | $15,914 | $16,391 | $16,883 | $17,389 | $17,911 | $18,448 | $19,002 | $19,572 |
| Vacancy Losses | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| Operating Income | $13,800 | $14,214 | $14,640 | $15,080 | $15,532 | $15,998 | $16,478 | $16,972 | $17,481 | $18,006 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,704) | ($1,755) | ($1,808) | ($1,862) | ($1,918) | ($1,975) | ($2,035) | ($2,096) | ($2,158) | ($2,223) |
| Insurance | ($728) | ($750) | ($772) | ($796) | ($819) | ($844) | ($869) | ($895) | ($922) | ($950) |
| 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 | ($300) | ($309) | ($318) | ($328) | ($338) | ($348) | ($358) | ($369) | ($380) | ($391) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,732) | ($2,814) | ($2,898) | ($2,985) | ($3,075) | ($3,167) | ($3,262) | ($3,360) | ($3,461) | ($3,565) |
| 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 | $11,068 | $11,400 | $11,742 | $12,094 | $12,457 | $12,831 | $13,216 | $13,612 | $14,021 | $14,441 |
| - Mortgage Payments | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) | ($7,183) |
| = Cash Flow | $3,885 | $4,217 | $4,559 | $4,911 | $5,274 | $5,647 | $6,032 | $6,429 | $6,837 | $7,258 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $9,294 | $9,852 | $10,443 | $11,069 | $11,733 | $12,437 | $13,184 | $13,975 | $14,813 | $15,702 |
| = Gross Equity Income | $13,179 | $14,068 | $15,001 | $15,980 | $17,007 | $18,085 | $19,216 | $20,404 | $21,650 | $22,960 |
| Capitalization Rate | 6.7% | 6.6% | 6.4% | 6.2% | 6.0% | 5.8% | 5.7% | 5.5% | 5.4% | 5.2% |
| Cash on Cash Return | 6.9% | 7.5% | 8.1% | 8.7% | 9.4% | 10.0% | 10.7% | 11.4% | 12.1% | 12.9% |
| Return on Equity | 23.6% | 21.4% | 19.7% | 18.3% | 17.2% | 16.2% | 15.4% | 14.7% | 14.1% | 13.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $164,194 | $174,046 | $184,488 | $195,558 | $207,291 | $219,729 | $232,912 | $246,887 | $261,700 | $277,402 |
| - Loan Balance | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) | ($108,430) |
| = Equity | $55,764 | $65,616 | $76,058 | $87,128 | $98,861 | $111,299 | $124,482 | $138,457 | $153,270 | $168,972 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $14,716 | $22,104 | $29,936 | $38,238 | $47,038 | $56,366 | $66,254 | $76,735 | $87,845 | $99,622 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $55,764 | $65,616 | $76,058 | $87,128 | $98,861 | $111,299 | $124,482 | $138,457 | $153,270 | $168,972 |
| - Closing Costs | ($11,494) | ($12,183) | ($12,914) | ($13,689) | ($14,510) | ($15,381) | ($16,304) | ($17,282) | ($18,319) | ($19,418) |
| = Proceeds After Sale | $44,270 | $53,432 | $63,144 | $73,439 | $84,351 | $95,918 | $108,178 | $121,175 | $134,951 | $149,554 |
| + Cumulative Cash Flow | $3,885 | $8,101 | $12,660 | $17,571 | $22,845 | $28,492 | $34,525 | $40,953 | $47,791 | $55,049 |
| - Initial Cash Invested | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) | ($56,384) |
| = Net Profit | ($8,229) | $5,150 | $19,421 | $34,626 | $50,812 | $68,026 | $86,319 | $105,745 | $126,358 | $148,219 |
| Internal Rate of Return | -14.6% | 4.6% | 11.0% | 13.9% | 15.3% | 16.0% | 16.3% | 16.5% | 16.5% | 16.5% |
| Return on Investment | -14.6% | 9.1% | 34.4% | 61.4% | 90.1% | 120.6% | 153.1% | 187.5% | 224.1% | 262.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.