| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,000 | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 |
| Vacancy Losses | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Operating Income | $33,120 | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 |
| 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 | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,770) | ($8,003) | ($8,243) | ($8,490) | ($8,745) | ($9,007) | ($9,277) | ($9,556) | ($9,842) | ($10,138) |
| 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 | $25,350 | $26,111 | $26,894 | $27,701 | $28,532 | $29,388 | $30,270 | $31,178 | $32,113 | $33,076 |
| - Mortgage Payments | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) | ($16,616) |
| = Cash Flow | $8,734 | $9,495 | $10,278 | $11,085 | $11,916 | $12,772 | $13,653 | $14,562 | $15,497 | $16,460 |
| + Principal Reduction | $2,360 | $2,522 | $2,694 | $2,878 | $3,074 | $3,284 | $3,509 | $3,748 | $4,004 | $4,278 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $37,045 | $39,523 | $42,129 | $44,869 | $47,751 | $50,783 | $53,973 | $57,329 | $60,861 | $64,580 |
| Capitalization Rate | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% |
| Cash on Cash Return | 3.7% | 4.0% | 4.3% | 4.7% | 5.0% | 5.4% | 5.7% | 6.1% | 6.5% | 6.9% |
| Return on Equity | 15.1% | 14.4% | 13.7% | 13.2% | 12.7% | 12.3% | 11.9% | 11.5% | 11.2% | 10.9% |
| 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 | ($213,890) | ($211,368) | ($208,674) | ($205,797) | ($202,723) | ($199,438) | ($195,930) | ($192,182) | ($188,178) | ($183,900) |
| = Equity | $244,560 | $274,589 | $306,440 | $340,225 | $376,060 | $414,071 | $454,390 | $497,158 | $542,522 | $590,642 |
| Loan-to-Value Ratio | 46.7% | 43.5% | 40.5% | 37.7% | 35.0% | 32.5% | 30.1% | 27.9% | 25.8% | 23.7% |
| Potential Cash-Out Refi | $129,948 | $153,100 | $177,661 | $203,719 | $231,364 | $260,694 | $291,810 | $324,823 | $359,847 | $397,006 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $244,560 | $274,589 | $306,440 | $340,225 | $376,060 | $414,071 | $454,390 | $497,158 | $542,522 | $590,642 |
| - 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 | $212,469 | $240,572 | $270,382 | $302,003 | $335,545 | $371,126 | $408,868 | $448,904 | $491,373 | $536,424 |
| + Cumulative Cash Flow | $8,734 | $18,229 | $28,507 | $39,592 | $51,508 | $64,280 | $77,933 | $92,495 | $107,992 | $124,452 |
| - Initial Cash Invested | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) | ($237,875) |
| = Net Profit | ($16,672) | $20,926 | $61,014 | $103,720 | $149,178 | $197,530 | $248,926 | $303,523 | $361,490 | $423,001 |
| Internal Rate of Return | -7.0% | 4.4% | 8.2% | 9.9% | 10.9% | 11.4% | 11.7% | 11.9% | 12.0% | 12.0% |
| Return on Investment | -7.0% | 8.8% | 25.6% | 43.6% | 62.7% | 83.0% | 104.6% | 127.6% | 152.0% | 177.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.