Property Information
IN ESCROW
CLIENT
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 | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) |
| = Cash Flow | $2,517 | $2,982 | $3,461 | $3,954 | $4,463 | $4,986 | $5,525 | $6,081 | $6,653 | $7,242 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $16,800 | $17,808 | $18,876 | $20,009 | $21,210 | $22,482 | $23,831 | $25,261 | $26,777 | $28,383 |
| = Gross Equity Income | $19,317 | $20,790 | $22,338 | $23,964 | $25,672 | $27,468 | $29,356 | $31,342 | $33,429 | $35,625 |
| 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 | 2.5% | 2.9% | 3.4% | 3.9% | 4.4% | 4.9% | 5.4% | 6.0% | 6.5% | 7.1% |
| Return on Equity | 19.2% | 17.5% | 16.2% | 15.2% | 14.4% | 13.7% | 13.0% | 12.5% | 12.1% | 11.7% |
| 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 | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) |
| = Equity | $100,800 | $118,608 | $137,484 | $157,494 | $178,703 | $201,185 | $225,016 | $250,277 | $277,054 | $305,437 |
| 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 | $26,600 | $39,956 | $54,113 | $69,120 | $85,027 | $101,889 | $119,762 | $138,708 | $158,791 | $180,078 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $100,800 | $118,608 | $137,484 | $157,494 | $178,703 | $201,185 | $225,016 | $250,277 | $277,054 | $305,437 |
| - 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 | $80,024 | $96,585 | $114,141 | $132,749 | $152,474 | $173,382 | $195,545 | $219,038 | $243,940 | $270,337 |
| + Cumulative Cash Flow | $2,517 | $5,499 | $8,960 | $12,915 | $17,377 | $22,364 | $27,889 | $33,969 | $40,622 | $47,863 |
| - Initial Cash Invested | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) | ($101,920) |
| = Net Profit | ($19,379) | $165 | $21,181 | $43,744 | $67,931 | $93,826 | $121,514 | $151,087 | $182,642 | $216,280 |
| Internal Rate of Return | -19.0% | 0.1% | 6.7% | 9.7% | 11.2% | 12.1% | 12.6% | 12.9% | 13.0% | 13.1% |
| Return on Investment | -19.0% | 0.2% | 20.8% | 42.9% | 66.7% | 92.1% | 119.2% | 148.2% | 179.2% | 212.2% |
*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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