| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $34,800 | $35,844 | $36,919 | $38,027 | $39,168 | $40,343 | $41,553 | $42,800 | $44,084 | $45,406 |
| Vacancy Losses | ($2,784) | ($2,868) | ($2,954) | ($3,042) | ($3,133) | ($3,227) | ($3,324) | ($3,424) | ($3,527) | ($3,632) |
| Operating Income | $32,016 | $32,976 | $33,966 | $34,985 | $36,034 | $37,115 | $38,229 | $39,376 | $40,557 | $41,774 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,522) | ($2,598) | ($2,675) | ($2,756) | ($2,838) | ($2,924) | ($3,011) | ($3,102) | ($3,195) | ($3,291) |
| Insurance | ($1,236) | ($1,273) | ($1,312) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) | ($1,613) |
| 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 | ($1,332) | ($1,372) | ($1,413) | ($1,456) | ($1,499) | ($1,544) | ($1,590) | ($1,638) | ($1,687) | ($1,738) |
| Maintenance | ($696) | ($717) | ($738) | ($761) | ($783) | ($807) | ($831) | ($856) | ($882) | ($908) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,818) | ($7,023) | ($7,233) | ($7,450) | ($7,674) | ($7,904) | ($8,141) | ($8,385) | ($8,637) | ($8,896) |
| 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 | $25,198 | $25,954 | $26,732 | $27,534 | $28,360 | $29,211 | $30,088 | $30,990 | $31,920 | $32,878 |
| - Mortgage Payments | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($27,757) | ($27,757) | ($27,757) |
| = Cash Flow | $2,925 | $3,681 | $4,460 | $5,262 | $6,088 | $6,939 | $7,815 | $3,233 | $4,163 | $5,120 |
| + Principal Reduction | $5,116 | $5,377 | $5,652 | $5,940 | $6,244 | $6,563 | $6,898 | $9,792 | $10,395 | $11,035 |
| + Appreciation | $29,669 | $31,450 | $33,337 | $35,337 | $37,457 | $39,704 | $42,087 | $44,612 | $47,289 | $50,126 |
| = Gross Equity Income | $37,711 | $40,508 | $43,448 | $46,539 | $49,788 | $53,205 | $56,799 | $57,637 | $61,847 | $66,282 |
| Capitalization Rate | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | 1.9% | 2.3% | 2.8% | 3.4% | 3.9% | 4.4% | 5.0% | 2.1% | 2.7% | 3.3% |
| Return on Equity | 20.6% | 18.4% | 16.8% | 15.5% | 14.5% | 13.6% | 12.9% | 11.7% | 11.2% | 10.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $524,159 | $555,609 | $588,946 | $624,282 | $661,739 | $701,444 | $743,530 | $788,142 | $835,430 | $885,556 |
| - Loan Balance | ($341,027) | ($335,649) | ($329,998) | ($324,057) | ($317,813) | ($311,251) | ($304,353) | ($294,561) | ($284,165) | ($273,130) |
| = Equity | $183,133 | $219,959 | $258,948 | $300,225 | $343,926 | $390,193 | $439,177 | $493,581 | $551,265 | $612,426 |
| 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 | $130,717 | $164,399 | $200,053 | $237,797 | $277,752 | $320,048 | $364,824 | $414,767 | $467,722 | $523,871 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $183,133 | $219,959 | $258,948 | $300,225 | $343,926 | $390,193 | $439,177 | $493,581 | $551,265 | $612,426 |
| - Closing Costs | ($36,691) | ($38,893) | ($41,226) | ($43,700) | ($46,322) | ($49,101) | ($52,047) | ($55,170) | ($58,480) | ($61,989) |
| = Proceeds After Sale | $146,441 | $181,067 | $217,722 | $256,525 | $297,604 | $341,092 | $387,130 | $438,411 | $492,785 | $550,437 |
| + Cumulative Cash Flow | $2,925 | $6,606 | $11,066 | $16,328 | $22,415 | $29,354 | $37,169 | $40,402 | $44,564 | $49,685 |
| - Initial Cash Invested | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) |
| = Net Profit | ($7,387) | $30,920 | $72,034 | $116,100 | $163,266 | $213,692 | $267,545 | $322,060 | $380,596 | $443,369 |
| Internal Rate of Return | -4.7% | 9.5% | 13.7% | 15.2% | 15.8% | 16.0% | 16.0% | 15.8% | 15.5% | 15.2% |
| Return on Investment | -4.7% | 19.7% | 46.0% | 74.1% | 104.2% | 136.3% | 170.7% | 205.5% | 242.8% | 282.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
