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PADSPLIT MODEL
Mesa, AZ 85204
8 bedrooms 3 bathrooms
TURN KEY CO-LIVING HOME
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected 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 |
| Estimated 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 | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) | ($30,039) |
| = Cash Flow | $19,118 | $20,593 | $22,112 | $23,676 | $25,288 | $26,947 | $28,657 | $30,418 | $32,232 | $34,100 |
| + Principal Reduction | $4,592 | $4,894 | $5,215 | $5,557 | $5,922 | $6,311 | $6,725 | $7,167 | $7,637 | $8,139 |
| + Appreciation | $32,100 | $34,026 | $36,068 | $38,232 | $40,526 | $42,957 | $45,534 | $48,267 | $51,163 | $54,232 |
| = Gross Equity Income | $55,810 | $59,512 | $63,394 | $67,465 | $71,735 | $76,215 | $80,917 | $85,851 | $91,031 | $96,470 |
| 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 | 12.8% | 13.8% | 14.8% | 15.8% | 16.9% | 18.0% | 19.2% | 20.4% | 21.6% | 22.8% |
| Return on Equity | 32.7% | 28.4% | 25.3% | 22.9% | 21.0% | 19.5% | 18.3% | 17.2% | 16.4% | 15.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Value | $567,100 | $601,126 | $637,194 | $675,425 | $715,951 | $758,908 | $804,442 | $852,709 | $903,871 | $958,104 |
| - Loan Balance | ($396,658) | ($391,764) | ($386,549) | ($380,991) | ($375,069) | ($368,758) | ($362,033) | ($354,866) | ($347,229) | ($339,091) |
| = Equity | $170,442 | $209,362 | $250,645 | $294,434 | $340,881 | $390,149 | $442,409 | $497,842 | $556,642 | $619,013 |
| Loan-to-Value Ratio | 69.9% | 65.2% | 60.7% | 56.4% | 52.4% | 48.6% | 45.0% | 41.6% | 38.4% | 35.4% |
| Potential Cash-Out Refi | $113,732 | $149,249 | $186,925 | $226,891 | $269,286 | $314,259 | $361,965 | $412,572 | $466,255 | $523,203 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $170,442 | $209,362 | $250,645 | $294,434 | $340,881 | $390,149 | $442,409 | $497,842 | $556,642 | $619,013 |
| - 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 | $130,745 | $167,283 | $206,041 | $247,154 | $290,765 | $337,026 | $386,098 | $438,153 | $493,371 | $551,946 |
| + Cumulative Cash Flow | $19,118 | $39,710 | $61,822 | $85,498 | $110,785 | $137,733 | $166,390 | $196,807 | $229,039 | $263,139 |
| - Approximate Cash Invested | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) | ($149,466) |
| = Net Profit | $398 | $57,528 | $118,397 | $183,186 | $252,085 | $325,293 | $403,022 | $485,495 | $572,945 | $665,619 |
| Internal Rate of Return | 0.3% | 18.7% | 23.7% | 25.3% | 25.7% | 25.7% | 25.4% | 25.0% | 24.6% | 24.2% |
| Return on Investment | 0.3% | 38.5% | 79.2% | 122.6% | 168.7% | 217.6% | 269.6% | 324.8% | 383.3% | 445.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
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