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BEAUTIFUL NEW CONSTRUCTION HOME
Mesa, AZ 85212
4 bedrooms 2.5 bathrooms
3 BR, 2BA, NEW CONSTRUCTION
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected 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 |
| Estimated 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 | ($576) | ($593) | ($611) | ($629) | ($648) | ($668) | ($688) | ($708) | ($730) | ($752) |
| 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 | ($6,362) | ($6,553) | ($6,750) | ($6,952) | ($7,161) | ($7,375) | ($7,597) | ($7,825) | ($8,059) | ($8,301) |
| 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 | $25,654 | $26,423 | $27,216 | $28,033 | $28,874 | $29,740 | $30,632 | $31,551 | $32,498 | $33,472 |
| - Mortgage Payments | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($22,273) | ($27,757) | ($27,757) | ($27,757) |
| = Cash Flow | $3,381 | $4,151 | $4,943 | $5,760 | $6,601 | $7,467 | $8,359 | $3,794 | $4,740 | $5,715 |
| + 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 | $38,167 | $40,978 | $43,932 | $47,037 | $50,302 | $53,734 | $57,344 | $58,198 | $62,424 | $66,877 |
| Capitalization Rate | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | 2.2% | 2.6% | 3.2% | 3.7% | 4.2% | 4.8% | 5.3% | 2.4% | 3.0% | 3.6% |
| Return on Equity | 20.8% | 18.6% | 17.0% | 15.7% | 14.6% | 13.8% | 13.1% | 11.8% | 11.3% | 10.9% |
| 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 | $3,381 | $7,532 | $12,475 | $18,235 | $24,836 | $32,303 | $40,663 | $44,457 | $49,197 | $54,912 |
| - Approximate Cash Invested | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) | ($156,753) |
| = Net Profit | ($6,931) | $31,845 | $73,444 | $118,007 | $165,687 | $216,642 | $271,039 | $326,115 | $385,229 | $448,596 |
| Internal Rate of Return | -4.4% | 9.8% | 13.9% | 15.5% | 16.1% | 16.2% | 16.2% | 16.0% | 15.7% | 15.4% |
| Return on Investment | -4.4% | 20.3% | 46.9% | 75.3% | 105.7% | 138.2% | 172.9% | 208.0% | 245.8% | 286.2% |
*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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