| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $30,000 | $30,900 | $31,827 | $32,782 | $33,765 | $34,778 | $35,822 | $36,896 | $38,003 | $39,143 |
| Vacancy Losses | ($2,400) | ($2,472) | ($2,546) | ($2,623) | ($2,701) | ($2,782) | ($2,866) | ($2,952) | ($3,040) | ($3,131) |
| Operating Income | $27,600 | $28,428 | $29,281 | $30,159 | $31,064 | $31,996 | $32,956 | $33,945 | $34,963 | $36,012 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,212) | ($2,279) | ($2,347) | ($2,417) | ($2,490) | ($2,565) | ($2,642) | ($2,721) | ($2,802) | ($2,887) |
| Insurance | ($1,129) | ($1,163) | ($1,197) | ($1,233) | ($1,270) | ($1,309) | ($1,348) | ($1,388) | ($1,430) | ($1,473) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,560) | ($1,607) | ($1,655) | ($1,705) | ($1,756) | ($1,808) | ($1,863) | ($1,919) | ($1,976) | ($2,035) |
| Maintenance | ($600) | ($618) | ($637) | ($656) | ($675) | ($696) | ($716) | ($738) | ($760) | ($783) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,533) | ($6,729) | ($6,931) | ($7,139) | ($7,353) | ($7,574) | ($7,801) | ($8,035) | ($8,276) | ($8,524) |
| 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 | $21,067 | $21,699 | $22,350 | $23,020 | $23,711 | $24,422 | $25,155 | $25,910 | $26,687 | $27,488 |
| - Mortgage Payments | ($20,336) | ($20,336) | ($20,336) | ($20,336) | ($20,336) | ($20,336) | ($20,336) | ($25,344) | ($25,344) | ($25,344) |
| = Cash Flow | $731 | $1,363 | $2,014 | $2,685 | $3,375 | $4,086 | $4,819 | $566 | $1,343 | $2,144 |
| + Principal Reduction | $4,671 | $4,910 | $5,160 | $5,424 | $5,701 | $5,992 | $6,298 | $8,941 | $9,491 | $10,076 |
| + Appreciation | $27,089 | $28,715 | $30,438 | $32,264 | $34,200 | $36,252 | $38,427 | $40,732 | $43,176 | $45,767 |
| = Gross Equity Income | $32,492 | $34,988 | $37,612 | $40,372 | $43,276 | $46,330 | $49,544 | $50,240 | $54,011 | $57,987 |
| Capitalization Rate | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% | 3.4% |
| Cash on Cash Return | 0.5% | 1.0% | 1.4% | 1.9% | 2.4% | 2.9% | 3.4% | 0.4% | 0.9% | 1.5% |
| Return on Equity | 19.4% | 17.4% | 15.9% | 14.7% | 13.8% | 13.0% | 12.4% | 11.1% | 10.7% | 10.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $478,579 | $507,294 | $537,732 | $569,996 | $604,195 | $640,447 | $678,874 | $719,606 | $762,783 | $808,550 |
| - Loan Balance | ($311,372) | ($306,462) | ($301,302) | ($295,878) | ($290,177) | ($284,185) | ($277,887) | ($268,946) | ($259,455) | ($249,379) |
| = Equity | $167,208 | $200,832 | $236,430 | $274,118 | $314,019 | $356,262 | $400,987 | $450,660 | $503,328 | $559,171 |
| Loan-to-Value Ratio | 65.1% | 60.4% | 56.0% | 51.9% | 48.0% | 44.4% | 40.9% | 37.4% | 34.0% | 30.8% |
| Potential Cash-Out Refi | $119,350 | $150,103 | $182,657 | $217,119 | $253,599 | $292,218 | $333,100 | $378,700 | $427,050 | $478,316 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $167,208 | $200,832 | $236,430 | $274,118 | $314,019 | $356,262 | $400,987 | $450,660 | $503,328 | $559,171 |
| - Closing Costs | ($33,501) | ($35,511) | ($37,641) | ($39,900) | ($42,294) | ($44,831) | ($47,521) | ($50,372) | ($53,395) | ($56,598) |
| = Proceeds After Sale | $133,707 | $165,322 | $198,789 | $234,218 | $271,725 | $311,431 | $353,466 | $400,288 | $449,933 | $502,572 |
| + Cumulative Cash Flow | $731 | $2,094 | $4,108 | $6,793 | $10,168 | $14,254 | $19,073 | $19,640 | $20,983 | $23,127 |
| - Initial Cash Invested | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) | ($143,122) |
| = Net Profit | ($8,684) | $24,293 | $59,775 | $97,889 | $138,770 | $182,563 | $229,417 | $276,805 | $327,794 | $382,577 |
| Internal Rate of Return | -6.1% | 8.2% | 12.4% | 14.0% | 14.7% | 14.9% | 14.9% | 14.8% | 14.5% | 14.3% |
| Return on Investment | -6.1% | 17.0% | 41.8% | 68.4% | 97.0% | 127.6% | 160.3% | 193.4% | 229.0% | 267.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
