| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $37,680 | $38,810 | $39,975 | $41,174 | $42,409 | $43,681 | $44,992 | $46,342 | $47,732 | $49,164 |
| Vacancy Losses | ($3,014) | ($3,105) | ($3,198) | ($3,294) | ($3,393) | ($3,495) | ($3,599) | ($3,707) | ($3,819) | ($3,933) |
| Operating Income | $34,666 | $35,706 | $36,777 | $37,880 | $39,016 | $40,187 | $41,393 | $42,634 | $43,913 | $45,231 |
| 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 | ($754) | ($776) | ($799) | ($823) | ($848) | ($874) | ($900) | ($927) | ($955) | ($983) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,803) | ($8,037) | ($8,279) | ($8,527) | ($8,783) | ($9,046) | ($9,318) | ($9,597) | ($9,885) | ($10,182) |
| 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 | $26,862 | $27,668 | $28,498 | $29,353 | $30,234 | $31,141 | $32,075 | $33,037 | $34,028 | $35,049 |
| - Mortgage Payments | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) | ($21,491) |
| = Cash Flow | $5,372 | $6,178 | $7,008 | $7,863 | $8,743 | $9,650 | $10,584 | $11,547 | $12,538 | $13,559 |
| + Principal Reduction | $3,805 | $4,035 | $4,279 | $4,537 | $4,811 | $5,101 | $5,409 | $5,735 | $6,082 | $6,449 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $35,127 | $37,720 | $40,444 | $43,306 | $46,315 | $49,478 | $52,804 | $56,301 | $59,980 | $63,849 |
| Capitalization Rate | 5.9% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% |
| Cash on Cash Return | 3.4% | 3.9% | 4.5% | 5.0% | 5.6% | 6.1% | 6.7% | 7.3% | 8.0% | 8.6% |
| Return on Equity | 22.0% | 19.7% | 18.0% | 16.7% | 15.6% | 14.7% | 13.9% | 13.3% | 12.7% | 12.2% |
| 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 | ($298,945) | ($294,910) | ($290,631) | ($286,094) | ($281,283) | ($276,182) | ($270,773) | ($265,038) | ($258,956) | ($252,508) |
| = Equity | $159,505 | $191,047 | $224,484 | $259,927 | $297,499 | $337,327 | $379,547 | $424,301 | $471,743 | $522,034 |
| Loan-to-Value Ratio | 65.2% | 60.7% | 56.4% | 52.4% | 48.6% | 45.0% | 41.6% | 38.4% | 35.4% | 32.6% |
| Potential Cash-Out Refi | $44,893 | $69,558 | $95,705 | $123,422 | $152,804 | $183,950 | $216,967 | $251,967 | $289,068 | $328,399 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $159,505 | $191,047 | $224,484 | $259,927 | $297,499 | $337,327 | $379,547 | $424,301 | $471,743 | $522,034 |
| - 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 | $127,414 | $157,030 | $188,426 | $221,706 | $256,984 | $294,382 | $334,024 | $376,048 | $420,594 | $467,816 |
| + Cumulative Cash Flow | $5,372 | $11,549 | $18,557 | $26,419 | $35,163 | $44,813 | $55,397 | $66,944 | $79,481 | $93,040 |
| - Initial Cash Invested | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) | ($157,430) |
| = Net Profit | ($24,644) | $11,150 | $49,552 | $90,695 | $134,717 | $181,764 | $231,991 | $285,561 | $342,646 | $403,426 |
| Internal Rate of Return | -15.7% | 3.5% | 9.9% | 12.6% | 13.9% | 14.6% | 14.9% | 15.0% | 15.0% | 15.0% |
| Return on Investment | -15.7% | 7.1% | 31.5% | 57.6% | 85.6% | 115.5% | 147.4% | 181.4% | 217.6% | 256.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.