| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $37,680 | $38,810 | $39,975 | $41,174 | $42,409 | $43,681 | $44,992 | $46,342 | $47,732 | $49,164 |
| Vacancy Losses | ($3,014) | ($3,105) | ($3,198) | ($3,294) | ($3,393) | ($3,495) | ($3,599) | ($3,707) | ($3,819) | ($3,933) |
| Operating Income | $34,666 | $35,706 | $36,777 | $37,880 | $39,016 | $40,187 | $41,393 | $42,634 | $43,913 | $45,231 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,406) | ($5,568) | ($5,735) | ($5,908) | ($6,085) | ($6,267) | ($6,455) | ($6,649) | ($6,848) | ($7,054) |
| Insurance | ($1,644) | ($1,693) | ($1,744) | ($1,796) | ($1,850) | ($1,905) | ($1,962) | ($2,021) | ($2,082) | ($2,144) |
| 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 | ($754) | ($776) | ($799) | ($823) | ($848) | ($874) | ($900) | ($927) | ($955) | ($983) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,803) | ($8,037) | ($8,279) | ($8,527) | ($8,783) | ($9,046) | ($9,318) | ($9,597) | ($9,885) | ($10,182) |
| 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 | $26,862 | $27,668 | $28,498 | $29,353 | $30,234 | $31,141 | $32,075 | $33,037 | $34,028 | $35,049 |
| - Mortgage Payments | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) |
| = Cash Flow | $3,837 | $4,643 | $5,473 | $6,328 | $7,208 | $8,115 | $9,049 | $10,012 | $11,003 | $12,024 |
| + Principal Reduction | $4,077 | $4,323 | $4,584 | $4,861 | $5,154 | $5,465 | $5,795 | $6,145 | $6,516 | $6,909 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $33,864 | $36,473 | $39,214 | $42,095 | $45,124 | $48,308 | $51,655 | $55,176 | $58,879 | $62,775 |
| Capitalization Rate | 5.9% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% |
| Cash on Cash Return | 3.0% | 3.6% | 4.2% | 4.9% | 5.6% | 6.3% | 7.0% | 7.7% | 8.5% | 9.3% |
| Return on Equity | 24.5% | 21.5% | 19.2% | 17.6% | 16.3% | 15.2% | 14.3% | 13.6% | 13.0% | 12.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Loan Balance | ($320,298) | ($315,975) | ($311,390) | ($306,529) | ($301,375) | ($295,910) | ($290,114) | ($283,969) | ($277,453) | ($270,544) |
| = Equity | $138,152 | $169,982 | $203,724 | $239,492 | $277,408 | $317,600 | $360,206 | $405,370 | $453,246 | $503,998 |
| Loan-to-Value Ratio | 69.9% | 65.0% | 60.5% | 56.1% | 52.1% | 48.2% | 44.6% | 41.2% | 38.0% | 34.9% |
| Potential Cash-Out Refi | $23,540 | $48,493 | $74,946 | $102,987 | $132,712 | $164,223 | $197,626 | $233,035 | $270,572 | $310,362 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $138,152 | $169,982 | $203,724 | $239,492 | $277,408 | $317,600 | $360,206 | $405,370 | $453,246 | $503,998 |
| - Closing Costs | ($32,092) | ($34,017) | ($36,058) | ($38,221) | ($40,515) | ($42,946) | ($45,522) | ($48,254) | ($51,149) | ($54,218) |
| = Proceeds After Sale | $106,061 | $135,965 | $167,666 | $201,270 | $236,893 | $274,654 | $314,683 | $357,116 | $402,097 | $449,780 |
| + Cumulative Cash Flow | $3,837 | $8,479 | $13,952 | $20,279 | $27,487 | $35,602 | $44,652 | $54,663 | $65,666 | $77,690 |
| - Initial Cash Invested | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) | ($129,750) |
| = Net Profit | ($19,853) | $14,695 | $51,868 | $91,800 | $134,630 | $180,507 | $229,585 | $282,030 | $338,014 | $397,719 |
| Internal Rate of Return | -15.3% | 5.6% | 12.2% | 14.9% | 16.0% | 16.6% | 16.7% | 16.7% | 16.6% | 16.5% |
| Return on Investment | -15.3% | 11.3% | 40.0% | 70.8% | 103.8% | 139.1% | 176.9% | 217.4% | 260.5% | 306.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.