| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 | $48,381 |
| Vacancy Losses | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) | ($3,870) |
| Operating Income | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 | $44,511 |
| 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 | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) | ($968) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,791) | ($8,025) | ($8,266) | ($8,514) | ($8,769) | ($9,032) | ($9,303) | ($9,582) | ($9,870) | ($10,166) |
| 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 | $26,322 | $27,112 | $27,925 | $28,763 | $29,626 | $30,515 | $31,430 | $32,373 | $33,344 | $34,345 |
| - Mortgage Payments | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) |
| = Cash Flow | $3,297 | $4,086 | $4,900 | $5,737 | $6,600 | $7,489 | $8,405 | $9,347 | $10,319 | $11,319 |
| + 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 | $33,324 | $35,917 | $38,641 | $41,505 | $44,516 | $47,681 | $51,010 | $54,512 | $58,195 | $62,070 |
| Capitalization Rate | 5.7% | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% |
| Cash on Cash Return | 2.5% | 3.1% | 3.8% | 4.4% | 5.1% | 5.8% | 6.5% | 7.2% | 8.0% | 8.7% |
| Return on Equity | 24.1% | 21.1% | 19.0% | 17.3% | 16.0% | 15.0% | 14.2% | 13.4% | 12.8% | 12.3% |
| 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 | $3,297 | $7,383 | $12,283 | $18,020 | $24,620 | $32,110 | $40,514 | $49,861 | $60,180 | $71,499 |
| - 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 | ($20,393) | $13,598 | $50,199 | $89,541 | $131,763 | $177,014 | $225,447 | $277,228 | $332,528 | $391,529 |
| Internal Rate of Return | -15.7% | 5.2% | 11.8% | 14.5% | 15.7% | 16.2% | 16.4% | 16.4% | 16.3% | 16.2% |
| Return on Investment | -15.7% | 10.5% | 38.7% | 69.0% | 101.6% | 136.4% | 173.8% | 213.7% | 256.3% | 301.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.