| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $622,200 | $640,866 | $660,092 | $679,895 | $700,292 | $721,300 | $742,939 | $765,228 | $788,184 | $811,830 |
| Vacancy Losses | ($31,110) | ($32,043) | ($33,005) | ($33,995) | ($35,015) | ($36,065) | ($37,147) | ($38,261) | ($39,409) | ($40,591) |
| Operating Income | $591,090 | $608,823 | $627,087 | $645,900 | $665,277 | $685,235 | $705,792 | $726,966 | $748,775 | $771,238 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($13,875) | ($14,291) | ($14,720) | ($15,162) | ($15,616) | ($16,085) | ($16,567) | ($17,064) | ($17,576) | ($18,104) |
| Insurance | ($9,250) | ($9,528) | ($9,813) | ($10,108) | ($10,411) | ($10,723) | ($11,045) | ($11,376) | ($11,718) | ($12,069) |
| Management Fees | ($23,644) | ($24,353) | ($25,083) | ($25,836) | ($26,611) | ($27,409) | ($28,232) | ($29,079) | ($29,951) | ($30,850) |
| 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 | ($12,444) | ($12,817) | ($13,202) | ($13,598) | ($14,006) | ($14,426) | ($14,859) | ($15,305) | ($15,764) | ($16,237) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($59,213) | ($60,989) | ($62,819) | ($64,703) | ($66,644) | ($68,644) | ($70,703) | ($72,824) | ($75,009) | ($77,259) |
| 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 | $531,877 | $547,834 | $564,269 | $581,197 | $598,633 | $616,592 | $635,089 | $654,142 | $673,766 | $693,979 |
| - Mortgage Payments | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) | ($420,875) |
| = Cash Flow | $111,002 | $126,959 | $143,394 | $160,322 | $177,758 | $195,717 | $214,214 | $233,267 | $252,891 | $273,104 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $555,000 | $588,300 | $623,598 | $661,014 | $700,675 | $742,715 | $787,278 | $834,515 | $884,586 | $937,661 |
| = Gross Equity Income | $666,002 | $715,259 | $766,992 | $821,336 | $878,432 | $938,432 | $1,001,492 | $1,067,782 | $1,137,477 | $1,210,765 |
| Capitalization Rate | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% |
| Cash on Cash Return | 3.5% | 4.0% | 4.5% | 5.0% | 5.6% | 6.2% | 6.7% | 7.3% | 7.9% | 8.6% |
| Return on Equity | 20.0% | 18.3% | 16.9% | 15.8% | 14.9% | 14.1% | 13.5% | 12.9% | 12.4% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $9,805,000 | $10,393,300 | $11,016,898 | $11,677,912 | $12,378,587 | $13,121,302 | $13,908,580 | $14,743,095 | $15,627,680 | $16,565,341 |
| - Loan Balance | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) | ($6,475,000) |
| = Equity | $3,330,000 | $3,918,300 | $4,541,898 | $5,202,912 | $5,903,587 | $6,646,302 | $7,433,580 | $8,268,095 | $9,152,680 | $10,090,341 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $2,349,500 | $2,878,970 | $3,440,208 | $4,035,121 | $4,665,728 | $5,334,172 | $6,042,722 | $6,793,785 | $7,589,912 | $8,433,807 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $3,330,000 | $3,918,300 | $4,541,898 | $5,202,912 | $5,903,587 | $6,646,302 | $7,433,580 | $8,268,095 | $9,152,680 | $10,090,341 |
| - Closing Costs | ($686,350) | ($727,531) | ($771,183) | ($817,454) | ($866,501) | ($918,491) | ($973,601) | ($1,032,017) | ($1,093,938) | ($1,159,574) |
| = Proceeds After Sale | $2,643,650 | $3,190,769 | $3,770,715 | $4,385,458 | $5,037,086 | $5,727,811 | $6,459,979 | $7,236,078 | $8,058,743 | $8,930,767 |
| + Cumulative Cash Flow | $111,002 | $237,961 | $381,355 | $541,676 | $719,434 | $915,151 | $1,129,365 | $1,362,632 | $1,615,524 | $1,888,628 |
| - Initial Cash Invested | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) | ($3,182,000) |
| = Net Profit | ($427,348) | $246,730 | $970,070 | $1,745,135 | $2,574,520 | $3,460,961 | $4,407,344 | $5,416,710 | $6,492,266 | $7,637,395 |
| Internal Rate of Return | -13.4% | 3.9% | 9.6% | 12.1% | 13.3% | 14.0% | 14.3% | 14.4% | 14.5% | 14.5% |
| Return on Investment | -13.4% | 7.8% | 30.5% | 54.8% | 80.9% | 108.8% | 138.5% | 170.2% | 204.0% | 240.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.