| 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 | ($1,064) | ($1,096) | ($1,129) | ($1,163) | ($1,198) | ($1,233) | ($1,270) | ($1,309) | ($1,348) | ($1,388) |
| 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 | ($5,307) | ($5,466) | ($5,630) | ($5,799) | ($5,973) | ($6,152) | ($6,337) | ($6,527) | ($6,722) | ($6,924) |
| 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 | $15,614 | $16,082 | $16,565 | $17,062 | $17,574 | $18,101 | $18,644 | $19,203 | $19,779 | $20,373 |
| - Mortgage Payments | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) | ($10,757) |
| = Cash Flow | $4,857 | $5,325 | $5,808 | $6,305 | $6,816 | $7,344 | $7,887 | $8,446 | $9,022 | $9,615 |
| + Principal Reduction | $1,528 | $1,632 | $1,744 | $1,863 | $1,990 | $2,126 | $2,272 | $2,427 | $2,592 | $2,769 |
| + Appreciation | $16,800 | $17,808 | $18,876 | $20,009 | $21,210 | $22,482 | $23,831 | $25,261 | $26,777 | $28,383 |
| = Gross Equity Income | $23,185 | $24,766 | $26,428 | $28,177 | $30,016 | $31,952 | $33,989 | $36,134 | $38,391 | $40,768 |
| Capitalization Rate | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 3.2% | 3.5% | 3.8% | 4.1% | 4.4% | 4.8% | 5.1% | 5.5% | 5.9% | 6.2% |
| Return on Equity | 14.6% | 13.9% | 13.3% | 12.8% | 12.3% | 11.9% | 11.6% | 11.2% | 10.9% | 10.7% |
| 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 | ($138,472) | ($136,839) | ($135,095) | ($133,232) | ($131,242) | ($129,116) | ($126,844) | ($124,417) | ($121,825) | ($119,056) |
| = Equity | $158,328 | $177,769 | $198,389 | $220,261 | $243,461 | $268,070 | $294,172 | $321,860 | $351,229 | $382,382 |
| 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 | $84,128 | $99,117 | $115,018 | $131,888 | $149,785 | $168,773 | $188,918 | $210,291 | $232,966 | $257,022 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $158,328 | $177,769 | $198,389 | $220,261 | $243,461 | $268,070 | $294,172 | $321,860 | $351,229 | $382,382 |
| - 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 | $137,552 | $155,746 | $175,045 | $195,517 | $217,232 | $240,267 | $264,701 | $290,621 | $318,115 | $347,281 |
| + Cumulative Cash Flow | $4,857 | $10,182 | $15,989 | $22,294 | $29,110 | $36,454 | $44,341 | $52,787 | $61,809 | $71,424 |
| - Initial Cash Invested | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) |
| = Net Profit | ($11,591) | $11,928 | $37,035 | $63,811 | $92,342 | $122,721 | $155,042 | $189,407 | $225,924 | $264,705 |
| Internal Rate of Return | -7.5% | 3.9% | 7.7% | 9.4% | 10.4% | 10.9% | 11.3% | 11.5% | 11.6% | 11.6% |
| Return on Investment | -7.5% | 7.7% | 24.0% | 41.4% | 60.0% | 79.7% | 100.7% | 123.0% | 146.7% | 171.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.