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Pre-Leased Property
Edmond, OK 73013
3 bedrooms 2 bathrooms
3BR, 2BA, Built in 2021
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected Rent | $22,740 | $23,422 | $24,125 | $24,849 | $25,594 | $26,362 | $27,153 | $27,967 | $28,806 | $29,671 |
| Vacancy Losses | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,048) | ($2,109) | ($2,172) | ($2,237) | ($2,305) | ($2,374) |
| Operating Income | $20,921 | $21,548 | $22,195 | $22,861 | $23,547 | $24,253 | $24,981 | $25,730 | $26,502 | $27,297 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Property Taxes | ($3,500) | ($3,605) | ($3,713) | ($3,825) | ($3,939) | ($4,057) | ($4,179) | ($4,305) | ($4,434) | ($4,567) |
| Insurance | ($1,176) | ($1,211) | ($1,248) | ($1,285) | ($1,324) | ($1,363) | ($1,404) | ($1,446) | ($1,490) | ($1,534) |
| 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 | ($288) | ($297) | ($306) | ($315) | ($324) | ($334) | ($344) | ($354) | ($365) | ($376) |
| Maintenance | ($455) | ($468) | ($482) | ($497) | ($512) | ($527) | ($543) | ($559) | ($576) | ($593) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,419) | ($5,581) | ($5,749) | ($5,921) | ($6,099) | ($6,282) | ($6,470) | ($6,664) | ($6,864) | ($7,070) |
| 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 | $15,502 | $15,967 | $16,446 | $16,939 | $17,448 | $17,971 | $18,510 | $19,066 | $19,637 | $20,227 |
| - Mortgage Payments | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) | ($15,722) |
| = Cash Flow | ($220) | $246 | $725 | $1,218 | $1,726 | $2,250 | $2,789 | $3,344 | $3,916 | $4,505 |
| + Principal Reduction | $2,403 | $2,561 | $2,729 | $2,909 | $3,099 | $3,303 | $3,520 | $3,751 | $3,997 | $4,259 |
| + Appreciation | $16,800 | $17,808 | $18,876 | $20,009 | $21,210 | $22,482 | $23,831 | $25,261 | $26,777 | $28,383 |
| = Gross Equity Income | $18,984 | $20,615 | $22,330 | $24,136 | $26,035 | $28,035 | $30,140 | $32,356 | $34,690 | $37,148 |
| Capitalization Rate | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% |
| Cash on Cash Return | -0.3% | 0.3% | 0.8% | 1.4% | 2.0% | 2.6% | 3.2% | 3.9% | 4.5% | 5.2% |
| Return on Equity | 21.3% | 18.8% | 17.0% | 15.7% | 14.6% | 13.7% | 13.0% | 12.4% | 11.9% | 11.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Value | $296,800 | $314,608 | $333,484 | $353,494 | $374,703 | $397,185 | $421,016 | $446,277 | $473,054 | $501,437 |
| - Loan Balance | ($207,597) | ($205,035) | ($202,306) | ($199,397) | ($196,298) | ($192,995) | ($189,475) | ($185,724) | ($181,727) | ($177,468) |
| = Equity | $89,203 | $109,573 | $131,179 | $154,096 | $178,405 | $204,191 | $231,541 | $260,553 | $291,327 | $323,970 |
| Loan-to-Value Ratio | 69.9% | 65.2% | 60.7% | 56.4% | 52.4% | 48.6% | 45.0% | 41.6% | 38.4% | 35.4% |
| Potential Cash-Out Refi | $15,003 | $30,921 | $47,807 | $65,723 | $84,730 | $104,894 | $126,287 | $148,984 | $173,064 | $198,610 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $89,203 | $109,573 | $131,179 | $154,096 | $178,405 | $204,191 | $231,541 | $260,553 | $291,327 | $323,970 |
| - Closing Costs | ($20,776) | ($22,023) | ($23,344) | ($24,745) | ($26,229) | ($27,803) | ($29,471) | ($31,239) | ($33,114) | ($35,101) |
| = Proceeds After Sale | $68,427 | $87,550 | $107,835 | $129,352 | $152,176 | $176,388 | $202,070 | $229,314 | $258,213 | $288,869 |
| + Cumulative Cash Flow | ($220) | $26 | $750 | $1,968 | $3,694 | $5,944 | $8,733 | $12,077 | $15,992 | $20,497 |
| - Approximate Cash Invested | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) | ($86,625) |
| = Net Profit | ($18,417) | $951 | $21,960 | $44,695 | $69,246 | $95,706 | $124,178 | $154,765 | $187,581 | $222,742 |
| Internal Rate of Return | -21.3% | 0.5% | 7.8% | 11.0% | 12.5% | 13.3% | 13.7% | 13.9% | 13.9% | 13.9% |
| Return on Investment | -21.3% | 1.1% | 25.4% | 51.6% | 79.9% | 110.5% | 143.4% | 178.7% | 216.5% | 257.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
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