| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,240 | $37,327 | $38,447 | $39,600 | $40,788 | $42,012 | $43,272 | $44,571 | $45,908 | $47,285 |
| Vacancy Losses | ($2,899) | ($2,986) | ($3,076) | ($3,168) | ($3,263) | ($3,361) | ($3,462) | ($3,566) | ($3,673) | ($3,783) |
| Operating Income | $33,341 | $34,341 | $35,371 | $36,432 | $37,525 | $38,651 | $39,811 | $41,005 | $42,235 | $43,502 |
| 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 | ($725) | ($747) | ($769) | ($792) | ($816) | ($840) | ($865) | ($891) | ($918) | ($946) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,775) | ($8,008) | ($8,248) | ($8,495) | ($8,750) | ($9,013) | ($9,283) | ($9,562) | ($9,849) | ($10,144) |
| 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 | $25,566 | $26,333 | $27,123 | $27,937 | $28,775 | $29,638 | $30,527 | $31,443 | $32,387 | $33,358 |
| - Mortgage Payments | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) | ($23,026) |
| = Cash Flow | $2,541 | $3,308 | $4,098 | $4,911 | $5,749 | $6,613 | $7,502 | $8,418 | $9,361 | $10,333 |
| + 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 | $32,568 | $35,138 | $37,839 | $40,679 | $43,665 | $46,805 | $50,108 | $53,582 | $57,237 | $61,084 |
| Capitalization Rate | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% |
| Cash on Cash Return | 2.0% | 2.5% | 3.2% | 3.8% | 4.4% | 5.1% | 5.8% | 6.5% | 7.2% | 8.0% |
| Return on Equity | 23.6% | 20.7% | 18.6% | 17.0% | 15.7% | 14.7% | 13.9% | 13.2% | 12.6% | 12.1% |
| 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 | $2,541 | $5,848 | $9,946 | $14,857 | $20,607 | $27,219 | $34,721 | $43,139 | $52,500 | $62,832 |
| - 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 | ($21,149) | $12,064 | $47,862 | $86,378 | $127,749 | $172,124 | $219,655 | $270,505 | $324,847 | $382,862 |
| Internal Rate of Return | -16.3% | 4.6% | 11.2% | 14.0% | 15.2% | 15.8% | 16.0% | 16.0% | 15.9% | 15.8% |
| Return on Investment | -16.3% | 9.3% | 36.9% | 66.6% | 98.5% | 132.7% | 169.3% | 208.5% | 250.4% | 295.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.