| 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 | ($4,590) | ($4,728) | ($4,870) | ($5,016) | ($5,166) | ($5,321) | ($5,481) | ($5,645) | ($5,814) | ($5,989) |
| Operating Income | $87,210 | $89,826 | $92,521 | $95,297 | $98,156 | $101,100 | $104,133 | $107,257 | $110,475 | $113,789 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Management Fees | ($10,465) | ($10,779) | ($11,103) | ($11,436) | ($11,779) | ($12,132) | ($12,496) | ($12,871) | ($13,257) | ($13,655) |
| 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 | ($1,836) | ($1,891) | ($1,948) | ($2,006) | ($2,066) | ($2,128) | ($2,192) | ($2,258) | ($2,326) | ($2,396) |
| Other | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | ($11,129) | ($11,463) | ($11,807) | ($12,161) | ($12,526) |
| Operating Expenses | ($21,901) | ($22,558) | ($23,235) | ($23,932) | ($24,650) | ($25,389) | ($26,151) | ($26,936) | ($27,744) | ($28,576) |
| 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 | $65,309 | $67,268 | $69,286 | $71,365 | $73,506 | $75,711 | $77,982 | $80,322 | $82,731 | $85,213 |
| - Mortgage Payments | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) | ($35,912) |
| = Cash Flow | $29,397 | $31,356 | $33,374 | $35,453 | $37,594 | $39,799 | $42,070 | $44,410 | $46,820 | $49,301 |
| + Principal Reduction | $3,945 | $4,252 | $4,582 | $4,938 | $5,321 | $5,734 | $6,179 | $6,659 | $7,176 | $7,733 |
| + Appreciation | $32,100 | $34,026 | $36,068 | $38,232 | $40,526 | $42,957 | $45,534 | $48,267 | $51,163 | $54,232 |
| = Gross Equity Income | $65,443 | $69,634 | $74,024 | $78,622 | $83,440 | $88,490 | $93,784 | $99,335 | $105,158 | $111,267 |
| Capitalization Rate | 11.5% | 11.2% | 10.9% | 10.6% | 10.3% | 10.0% | 9.7% | 9.4% | 9.2% | 8.9% |
| Cash on Cash Return | 22.3% | 23.8% | 25.4% | 26.9% | 28.6% | 30.2% | 32.0% | 33.7% | 35.6% | 37.5% |
| Return on Equity | 45.7% | 38.4% | 33.3% | 29.7% | 26.8% | 24.6% | 22.8% | 21.3% | 20.0% | 19.0% |
| 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 | ($424,055) | ($419,803) | ($415,221) | ($410,283) | ($404,963) | ($399,229) | ($393,050) | ($386,391) | ($379,215) | ($371,482) |
| = Equity | $143,045 | $181,323 | $221,973 | $265,142 | $310,988 | $359,679 | $411,393 | $466,318 | $524,656 | $586,621 |
| Loan-to-Value Ratio | 74.8% | 69.8% | 65.2% | 60.7% | 56.6% | 52.6% | 48.9% | 45.3% | 42.0% | 38.8% |
| Potential Cash-Out Refi | $86,335 | $121,211 | $158,253 | $197,599 | $239,393 | $283,788 | $330,948 | $381,047 | $434,269 | $490,811 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $143,045 | $181,323 | $221,973 | $265,142 | $310,988 | $359,679 | $411,393 | $466,318 | $524,656 | $586,621 |
| - 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 | $103,348 | $139,244 | $177,369 | $217,862 | $260,872 | $306,556 | $355,082 | $406,628 | $461,385 | $519,554 |
| + Cumulative Cash Flow | $29,397 | $60,754 | $94,128 | $129,581 | $167,175 | $206,974 | $249,044 | $293,454 | $340,274 | $389,575 |
| - Initial Cash Invested | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) | ($131,610) |
| = Net Profit | $1,136 | $68,388 | $139,887 | $215,833 | $296,437 | $381,920 | $472,516 | $568,473 | $670,049 | $777,519 |
| Internal Rate of Return | 0.9% | 25.6% | 32.1% | 34.1% | 34.5% | 34.3% | 33.9% | 33.4% | 32.8% | 32.4% |
| Return on Investment | 0.9% | 52.0% | 106.3% | 164.0% | 225.2% | 290.2% | 359.0% | 431.9% | 509.1% | 590.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
