| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $91,800 | $94,554 | $97,391 | $100,312 | $103,322 | $106,421 | $109,614 | $112,902 | $116,289 | $119,778 |
| Vacancy Losses | ($7,344) | ($7,564) | ($7,791) | ($8,025) | ($8,266) | ($8,514) | ($8,769) | ($9,032) | ($9,303) | ($9,582) |
| Operating Income | $84,456 | $86,990 | $89,599 | $92,287 | $95,056 | $97,908 | $100,845 | $103,870 | $106,986 | $110,196 |
| 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 | ($13,513) | ($13,918) | ($14,336) | ($14,766) | ($15,209) | ($15,665) | ($16,135) | ($16,619) | ($17,118) | ($17,631) |
| 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 | ($2,754) | ($2,837) | ($2,922) | ($3,009) | ($3,100) | ($3,193) | ($3,288) | ($3,387) | ($3,489) | ($3,593) |
| Other | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | ($11,129) | ($11,463) | ($11,807) | ($12,161) | ($12,526) |
| Operating Expenses | ($29,505) | ($30,390) | ($31,302) | ($32,241) | ($33,208) | ($34,204) | ($35,230) | ($36,287) | ($37,376) | ($38,497) |
| 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 | $54,951 | $56,600 | $58,298 | $60,046 | $61,848 | $63,703 | $65,614 | $67,583 | $69,610 | $71,699 |
| - Mortgage Payments | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) | ($30,434) |
| = Cash Flow | $24,517 | $26,166 | $27,864 | $29,612 | $31,414 | $33,269 | $35,180 | $37,149 | $39,176 | $41,265 |
| + 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 | $61,102 | $64,977 | $69,037 | $73,292 | $77,752 | $82,428 | $87,332 | $92,476 | $97,872 | $103,534 |
| Capitalization Rate | 9.7% | 9.4% | 9.1% | 8.9% | 8.6% | 8.4% | 8.2% | 7.9% | 7.7% | 7.5% |
| Cash on Cash Return | 15.9% | 17.0% | 18.1% | 19.3% | 20.4% | 21.6% | 22.9% | 24.2% | 25.5% | 26.8% |
| Return on Equity | 35.9% | 31.1% | 27.6% | 24.9% | 22.8% | 21.2% | 19.8% | 18.6% | 17.6% | 16.8% |
| 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 | $24,517 | $50,683 | $78,546 | $108,158 | $139,572 | $172,842 | $208,022 | $245,171 | $284,347 | $325,612 |
| - 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 | $1,342 | $63,937 | $130,449 | $201,065 | $275,980 | $355,401 | $439,545 | $528,642 | $622,933 | $722,671 |
| Internal Rate of Return | 0.9% | 20.3% | 25.7% | 27.4% | 27.8% | 27.8% | 27.5% | 27.1% | 26.7% | 26.3% |
| Return on Investment | 0.9% | 41.6% | 84.8% | 130.7% | 179.4% | 231.1% | 285.8% | 343.7% | 405.0% | 469.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
