| 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 | ($3,360) | ($3,461) | ($3,565) | ($3,672) | ($3,782) | ($3,895) | ($4,012) | ($4,132) | ($4,256) | ($4,384) |
| Insurance | ($1,092) | ($1,125) | ($1,159) | ($1,193) | ($1,229) | ($1,266) | ($1,304) | ($1,343) | ($1,383) | ($1,425) |
| Management Fees | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| 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 | ($5,915) | ($6,092) | ($6,275) | ($6,463) | ($6,657) | ($6,857) | ($7,063) | ($7,274) | ($7,493) | ($7,717) |
| 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 | $15,006 | $15,456 | $15,920 | $16,397 | $16,889 | $17,396 | $17,918 | $18,455 | $19,009 | $19,579 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $15,006 | $15,456 | $15,920 | $16,397 | $16,889 | $17,396 | $17,918 | $18,455 | $19,009 | $19,579 |
| + 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 | $31,806 | $33,264 | $34,796 | $36,407 | $38,099 | $39,878 | $41,749 | $43,716 | $45,786 | $47,963 |
| Capitalization Rate | 5.1% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.3% | 4.1% | 4.0% | 3.9% |
| Cash on Cash Return | 5.3% | 5.5% | 5.6% | 5.8% | 6.0% | 6.2% | 6.3% | 6.5% | 6.7% | 6.9% |
| Return on Equity | 10.7% | 10.6% | 10.4% | 10.3% | 10.2% | 10.0% | 9.9% | 9.8% | 9.7% | 9.6% |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $296,800 | $314,608 | $333,484 | $353,494 | $374,703 | $397,185 | $421,016 | $446,277 | $473,054 | $501,437 |
| Loan-to-Value Ratio | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Potential Cash-Out Refi | $222,600 | $235,956 | $250,113 | $265,120 | $281,027 | $297,889 | $315,762 | $334,708 | $354,791 | $376,078 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $296,800 | $314,608 | $333,484 | $353,494 | $374,703 | $397,185 | $421,016 | $446,277 | $473,054 | $501,437 |
| - 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 | $276,024 | $292,585 | $310,141 | $328,749 | $348,474 | $369,382 | $391,545 | $415,038 | $439,940 | $466,337 |
| + Cumulative Cash Flow | $15,006 | $30,462 | $46,382 | $62,780 | $79,669 | $97,065 | $114,983 | $133,438 | $152,448 | $172,027 |
| - Initial Cash Invested | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) | ($282,800) |
| = Net Profit | $8,230 | $40,248 | $73,723 | $108,729 | $145,343 | $183,647 | $223,728 | $265,676 | $309,588 | $355,564 |
| Internal Rate of Return | 2.9% | 7.1% | 8.4% | 9.1% | 9.5% | 9.7% | 9.8% | 9.9% | 10.0% | 10.0% |
| Return on Investment | 2.9% | 14.2% | 26.1% | 38.4% | 51.4% | 64.9% | 79.1% | 93.9% | 109.5% | 125.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.