| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $50,400 | $51,912 | $53,469 | $55,073 | $56,726 | $58,427 | $60,180 | $61,986 | $63,845 | $65,761 |
| Vacancy Losses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Income | $50,400 | $51,912 | $53,469 | $55,073 | $56,726 | $58,427 | $60,180 | $61,986 | $63,845 | $65,761 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,300) | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) | ($1,552) | ($1,599) | ($1,647) | ($1,696) |
| Insurance | ($325) | ($335) | ($345) | ($355) | ($366) | ($377) | ($388) | ($400) | ($412) | ($424) |
| Management Fees | ($4,032) | ($4,153) | ($4,278) | ($4,406) | ($4,538) | ($4,674) | ($4,814) | ($4,959) | ($5,108) | ($5,261) |
| 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 | ($2,520) | ($2,596) | ($2,673) | ($2,754) | ($2,836) | ($2,921) | ($3,009) | ($3,099) | ($3,192) | ($3,288) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,177) | ($8,422) | ($8,675) | ($8,935) | ($9,203) | ($9,479) | ($9,764) | ($10,057) | ($10,358) | ($10,669) |
| 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 | $42,223 | $43,490 | $44,794 | $46,138 | $47,522 | $48,948 | $50,416 | $51,929 | $53,487 | $55,091 |
| - Mortgage Payments | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) | ($30,144) |
| = Cash Flow | $12,079 | $13,346 | $14,651 | $15,994 | $17,379 | $18,804 | $20,273 | $21,785 | $23,343 | $24,948 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $39,000 | $41,340 | $43,820 | $46,450 | $49,237 | $52,191 | $55,322 | $58,642 | $62,160 | $65,890 |
| = Gross Equity Income | $51,079 | $54,686 | $58,471 | $62,444 | $66,615 | $70,995 | $75,595 | $80,427 | $85,503 | $90,837 |
| Capitalization Rate | 6.1% | 6.0% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% |
| Cash on Cash Return | 5.4% | 6.0% | 6.6% | 7.2% | 7.8% | 8.4% | 9.1% | 9.7% | 10.4% | 11.2% |
| Return on Equity | 21.8% | 19.9% | 18.3% | 17.1% | 16.1% | 15.2% | 14.5% | 13.8% | 13.3% | 12.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $689,000 | $730,340 | $774,160 | $820,610 | $869,847 | $922,037 | $977,360 | $1,036,001 | $1,098,161 | $1,164,051 |
| - Loan Balance | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) | ($455,000) |
| = Equity | $234,000 | $275,340 | $319,160 | $365,610 | $414,847 | $467,037 | $522,360 | $581,001 | $643,161 | $709,051 |
| 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 | $165,100 | $202,306 | $241,744 | $283,549 | $327,862 | $374,834 | $424,624 | $477,401 | $533,345 | $592,646 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $234,000 | $275,340 | $319,160 | $365,610 | $414,847 | $467,037 | $522,360 | $581,001 | $643,161 | $709,051 |
| - Closing Costs | ($48,230) | ($51,124) | ($54,191) | ($57,443) | ($60,889) | ($64,543) | ($68,415) | ($72,520) | ($76,871) | ($81,484) |
| = Proceeds After Sale | $185,770 | $224,216 | $264,969 | $308,167 | $353,957 | $402,495 | $453,944 | $508,481 | $566,290 | $627,567 |
| + Cumulative Cash Flow | $12,079 | $25,425 | $40,076 | $56,070 | $73,449 | $92,253 | $112,526 | $134,311 | $157,654 | $182,602 |
| - Initial Cash Invested | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) | ($223,600) |
| = Net Profit | ($25,751) | $26,041 | $81,445 | $140,638 | $203,806 | $271,148 | $342,870 | $419,192 | $500,344 | $586,569 |
| Internal Rate of Return | -11.5% | 5.8% | 11.4% | 13.9% | 15.0% | 15.6% | 15.9% | 16.0% | 16.0% | 15.9% |
| Return on Investment | -11.5% | 11.6% | 36.4% | 62.9% | 91.1% | 121.3% | 153.3% | 187.5% | 223.8% | 262.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.