Property Information
Pre-Leased Property
Edmond, OK 73013
3 bedrooms 2 bathrooms
3BR, 2BA, Built in 2021
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross 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 |
| 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 | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) | ($15,928) |
| = Cash Flow | ($426) | $39 | $518 | $1,011 | $1,520 | $2,043 | $2,582 | $3,137 | $3,709 | $4,299 |
| + Principal Reduction | $2,347 | $2,504 | $2,672 | $2,851 | $3,042 | $3,246 | $3,463 | $3,695 | $3,943 | $4,207 |
| + Appreciation | $16,800 | $17,808 | $18,876 | $20,009 | $21,210 | $22,482 | $23,831 | $25,261 | $26,777 | $28,383 |
| = Gross Equity Income | $18,721 | $20,351 | $22,067 | $23,872 | $25,771 | $27,771 | $29,876 | $32,093 | $34,429 | $36,888 |
| 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 | -0.5% | 0.0% | 0.6% | 1.2% | 1.8% | 2.4% | 3.0% | 3.6% | 4.3% | 5.0% |
| Return on Equity | 21.0% | 18.6% | 16.8% | 15.5% | 14.5% | 13.6% | 12.9% | 12.3% | 11.8% | 11.4% |
| 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 | ($207,653) | ($205,148) | ($202,476) | ($199,625) | ($196,583) | ($193,338) | ($189,874) | ($186,179) | ($182,237) | ($178,030) |
| = Equity | $89,147 | $109,460 | $131,008 | $153,868 | $178,120 | $203,848 | $231,142 | $260,098 | $290,817 | $323,407 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $14,947 | $30,808 | $47,637 | $65,495 | $84,444 | $104,552 | $125,888 | $148,529 | $172,554 | $198,048 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $89,147 | $109,460 | $131,008 | $153,868 | $178,120 | $203,848 | $231,142 | $260,098 | $290,817 | $323,407 |
| - 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 | $68,371 | $87,437 | $107,664 | $129,124 | $151,891 | $176,045 | $201,671 | $228,859 | $257,703 | $288,306 |
| + Cumulative Cash Flow | ($426) | ($387) | $131 | $1,142 | $2,662 | $4,705 | $7,287 | $10,424 | $14,134 | $18,432 |
| - Initial Cash Invested | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) | ($86,100) |
| = Net Profit | ($18,155) | $950 | $21,695 | $44,166 | $68,453 | $94,650 | $122,858 | $153,183 | $185,737 | $220,639 |
| Internal Rate of Return | -21.1% | 0.5% | 7.8% | 10.9% | 12.4% | 13.2% | 13.6% | 13.8% | 13.8% | 13.8% |
| Return on Investment | -21.1% | 1.1% | 25.2% | 51.3% | 79.5% | 109.9% | 142.7% | 177.9% | 215.7% | 256.3% |
*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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