| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $84,000 | $86,520 | $89,116 | $91,789 | $94,543 | $97,379 | $100,300 | $103,309 | $106,409 | $109,601 |
| Vacancy Losses | ($6,720) | ($6,922) | ($7,129) | ($7,343) | ($7,563) | ($7,790) | ($8,024) | ($8,265) | ($8,513) | ($8,768) |
| Operating Income | $77,280 | $79,598 | $81,986 | $84,446 | $86,979 | $89,589 | $92,276 | $95,045 | $97,896 | $100,833 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,047) | ($2,109) | ($2,172) | ($2,237) | ($2,304) | ($2,373) |
| Insurance | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,047) | ($2,109) | ($2,172) | ($2,237) | ($2,304) | ($2,373) |
| Management Fees | ($12,365) | ($12,736) | ($13,118) | ($13,511) | ($13,917) | ($14,334) | ($14,764) | ($15,207) | ($15,663) | ($16,133) |
| 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 | ($2,520) | ($2,596) | ($2,673) | ($2,754) | ($2,836) | ($2,921) | ($3,009) | ($3,099) | ($3,192) | ($3,288) |
| Other | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | ($11,129) | ($11,463) | ($11,807) | ($12,161) | ($12,526) |
| Operating Expenses | ($28,123) | ($28,966) | ($29,835) | ($30,731) | ($31,652) | ($32,602) | ($33,580) | ($34,587) | ($35,625) | ($36,694) |
| 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 | $49,157 | $50,632 | $52,151 | $53,715 | $55,327 | $56,987 | $58,696 | $60,457 | $62,271 | $64,139 |
| - Mortgage Payments | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) |
| = Cash Flow | $18,723 | $20,198 | $21,717 | $23,281 | $24,893 | $26,553 | $28,262 | $30,023 | $31,837 | $33,705 |
| + Principal Reduction | $4,485 | $4,785 | $5,106 | $5,448 | $5,812 | $6,202 | $6,617 | $7,060 | $7,533 | $8,038 |
| + Appreciation | $32,100 | $34,026 | $36,068 | $38,232 | $40,526 | $42,957 | $45,534 | $48,267 | $51,163 | $54,232 |
| = Gross Equity Income | $55,308 | $59,009 | $62,890 | $66,961 | $71,231 | $75,711 | $80,414 | $85,350 | $90,532 | $95,975 |
| Capitalization Rate | 8.7% | 8.4% | 8.2% | 8.0% | 7.7% | 7.5% | 7.3% | 7.1% | 6.9% | 6.7% |
| Cash on Cash Return | 12.2% | 13.1% | 14.1% | 15.1% | 16.2% | 17.3% | 18.4% | 19.5% | 20.7% | 21.9% |
| Return on Equity | 32.5% | 28.2% | 25.1% | 22.8% | 20.9% | 19.4% | 18.2% | 17.2% | 16.3% | 15.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $567,100 | $601,126 | $637,194 | $675,425 | $715,951 | $758,908 | $804,442 | $852,709 | $903,871 | $958,104 |
| - Loan Balance | ($396,765) | ($391,980) | ($386,874) | ($381,427) | ($375,614) | ($369,412) | ($362,795) | ($355,735) | ($348,202) | ($340,165) |
| = Equity | $170,335 | $209,146 | $250,319 | $293,999 | $340,336 | $389,495 | $441,647 | $496,973 | $555,669 | $617,939 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $113,625 | $149,033 | $186,600 | $226,456 | $268,741 | $313,604 | $361,203 | $411,703 | $465,282 | $522,129 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $170,335 | $209,146 | $250,319 | $293,999 | $340,336 | $389,495 | $441,647 | $496,973 | $555,669 | $617,939 |
| - Closing Costs | ($39,697) | ($42,079) | ($44,604) | ($47,280) | ($50,117) | ($53,124) | ($56,311) | ($59,690) | ($63,271) | ($67,067) |
| = Proceeds After Sale | $130,638 | $167,067 | $205,716 | $246,719 | $290,220 | $336,372 | $385,336 | $437,284 | $492,398 | $550,872 |
| + Cumulative Cash Flow | $18,723 | $38,921 | $60,638 | $83,919 | $108,812 | $135,365 | $163,627 | $193,650 | $225,487 | $259,192 |
| - Initial Cash Invested | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) | ($153,813) |
| = Net Profit | ($4,452) | $52,176 | $112,541 | $176,825 | $245,219 | $317,924 | $395,150 | $477,121 | $564,072 | $656,251 |
| Internal Rate of Return | -2.9% | 16.6% | 22.1% | 24.0% | 24.6% | 24.7% | 24.5% | 24.2% | 23.8% | 23.5% |
| Return on Investment | -2.9% | 33.9% | 73.2% | 115.0% | 159.4% | 206.7% | 256.9% | 310.2% | 366.7% | 426.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
