| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $144,000 | $148,320 | $152,770 | $157,353 | $162,073 | $166,935 | $171,944 | $177,102 | $182,415 | $187,887 |
| Vacancy Losses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Income | $144,000 | $148,320 | $152,770 | $157,353 | $162,073 | $166,935 | $171,944 | $177,102 | $182,415 | $187,887 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,333) | ($5,493) | ($5,658) | ($5,828) | ($6,003) | ($6,183) | ($6,368) | ($6,559) | ($6,756) | ($6,959) |
| Insurance | ($3,556) | ($3,662) | ($3,772) | ($3,885) | ($4,002) | ($4,122) | ($4,246) | ($4,373) | ($4,504) | ($4,639) |
| Management Fees | ($21,600) | ($22,248) | ($22,915) | ($23,603) | ($24,311) | ($25,040) | ($25,792) | ($26,565) | ($27,362) | ($28,183) |
| 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 | ($7,200) | ($7,416) | ($7,638) | ($7,868) | ($8,104) | ($8,347) | ($8,597) | ($8,855) | ($9,121) | ($9,394) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($37,689) | ($38,820) | ($39,984) | ($41,184) | ($42,419) | ($43,692) | ($45,002) | ($46,353) | ($47,743) | ($49,175) |
| 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 | $106,311 | $109,500 | $112,785 | $116,169 | $119,654 | $123,244 | $126,941 | $130,749 | $134,672 | $138,712 |
| - Mortgage Payments | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) | ($86,667) |
| = Cash Flow | $19,644 | $22,834 | $26,119 | $29,502 | $32,987 | $36,577 | $40,274 | $44,083 | $48,005 | $52,045 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $106,667 | $113,067 | $119,851 | $127,042 | $134,664 | $142,744 | $151,309 | $160,387 | $170,010 | $180,211 |
| = Gross Equity Income | $126,311 | $135,900 | $145,969 | $156,544 | $167,652 | $179,321 | $191,583 | $204,470 | $218,015 | $232,256 |
| Capitalization Rate | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.4% |
| Cash on Cash Return | 3.7% | 4.4% | 5.0% | 5.6% | 6.3% | 7.0% | 7.7% | 8.4% | 9.2% | 9.9% |
| Return on Equity | 22.9% | 20.5% | 18.6% | 17.2% | 16.0% | 15.1% | 14.3% | 13.6% | 13.1% | 12.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $1,884,444 | $1,997,510 | $2,117,361 | $2,244,403 | $2,379,067 | $2,521,811 | $2,673,119 | $2,833,506 | $3,003,517 | $3,183,728 |
| - Loan Balance | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) | ($1,333,333) |
| = Equity | $551,111 | $664,177 | $784,028 | $911,070 | $1,045,734 | $1,188,478 | $1,339,787 | $1,500,174 | $1,670,184 | $1,850,395 |
| Loan-to-Value Ratio | 70.8% | 66.7% | 63.0% | 59.4% | 56.0% | 52.9% | 49.9% | 47.1% | 44.4% | 41.9% |
| Potential Cash-Out Refi | $362,667 | $464,426 | $572,292 | $686,630 | $807,827 | $936,297 | $1,072,475 | $1,216,823 | $1,369,832 | $1,532,022 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $551,111 | $664,177 | $784,028 | $911,070 | $1,045,734 | $1,188,478 | $1,339,787 | $1,500,174 | $1,670,184 | $1,850,395 |
| - Closing Costs | ($131,911) | ($139,826) | ($148,215) | ($157,108) | ($166,535) | ($176,527) | ($187,118) | ($198,345) | ($210,246) | ($222,861) |
| = Proceeds After Sale | $419,200 | $524,352 | $635,813 | $753,962 | $879,199 | $1,011,951 | $1,152,668 | $1,301,828 | $1,459,938 | $1,627,534 |
| + Cumulative Cash Flow | $19,644 | $42,478 | $68,597 | $98,099 | $131,087 | $167,664 | $207,938 | $252,021 | $300,026 | $352,071 |
| - Initial Cash Invested | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) | ($524,444) |
| = Net Profit | ($85,600) | $42,386 | $179,966 | $327,617 | $485,842 | $655,171 | $836,162 | $1,029,405 | $1,235,520 | $1,455,161 |
| Internal Rate of Return | -16.3% | 4.0% | 10.7% | 13.5% | 14.9% | 15.5% | 15.8% | 15.9% | 15.9% | 15.9% |
| Return on Investment | -16.3% | 8.1% | 34.3% | 62.5% | 92.6% | 124.9% | 159.4% | 196.3% | 235.6% | 277.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
