| 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 | ($2,640) | ($2,719) | ($2,801) | ($2,885) | ($2,971) | ($3,060) | ($3,152) | ($3,247) | ($3,344) | ($3,445) |
| Insurance | ($1,100) | ($1,133) | ($1,167) | ($1,202) | ($1,238) | ($1,275) | ($1,313) | ($1,353) | ($1,393) | ($1,435) |
| 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 | ($1,788) | ($1,842) | ($1,897) | ($1,954) | ($2,012) | ($2,073) | ($2,135) | ($2,199) | ($2,265) | ($2,333) |
| Maintenance | ($696) | ($717) | ($738) | ($761) | ($783) | ($807) | ($831) | ($856) | ($882) | ($908) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,256) | ($7,474) | ($7,698) | ($7,929) | ($8,167) | ($8,412) | ($8,664) | ($8,924) | ($9,192) | ($9,467) |
| 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 | $24,760 | $25,503 | $26,268 | $27,056 | $27,868 | $28,704 | $29,565 | $30,452 | $31,365 | $32,306 |
| - Mortgage Payments | ($19,818) | ($19,818) | ($19,818) | ($19,818) | ($19,818) | ($19,818) | ($19,818) | ($24,698) | ($24,698) | ($24,698) |
| = Cash Flow | $4,942 | $5,685 | $6,450 | $7,238 | $8,049 | $8,885 | $9,747 | $5,753 | $6,667 | $7,608 |
| + Principal Reduction | $4,552 | $4,785 | $5,029 | $5,286 | $5,556 | $5,839 | $6,137 | $8,713 | $9,250 | $9,819 |
| + Appreciation | $26,400 | $27,984 | $29,663 | $31,443 | $33,329 | $35,329 | $37,449 | $39,696 | $42,077 | $44,602 |
| = Gross Equity Income | $35,894 | $38,453 | $41,142 | $43,966 | $46,934 | $50,054 | $53,333 | $54,162 | $57,994 | $62,029 |
| Capitalization Rate | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 3.5% | 4.1% | 4.6% | 5.2% | 5.8% | 6.4% | 7.0% | 4.1% | 4.8% | 5.5% |
| Return on Equity | 22.0% | 19.6% | 17.9% | 16.5% | 15.3% | 14.4% | 13.6% | 12.3% | 11.8% | 11.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $466,399 | $494,383 | $524,046 | $555,489 | $588,818 | $624,147 | $661,596 | $701,292 | $743,369 | $787,971 |
| - Loan Balance | ($303,447) | ($298,662) | ($293,633) | ($288,348) | ($282,792) | ($276,953) | ($270,815) | ($262,102) | ($252,852) | ($243,033) |
| = Equity | $162,952 | $195,721 | $230,412 | $267,141 | $306,026 | $347,194 | $390,780 | $439,189 | $490,517 | $544,938 |
| 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 | $116,312 | $146,282 | $178,008 | $211,592 | $247,144 | $284,780 | $324,621 | $369,060 | $416,180 | $466,141 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $162,952 | $195,721 | $230,412 | $267,141 | $306,026 | $347,194 | $390,780 | $439,189 | $490,517 | $544,938 |
| - Closing Costs | ($32,648) | ($34,607) | ($36,683) | ($38,884) | ($41,217) | ($43,690) | ($46,312) | ($49,090) | ($52,036) | ($55,158) |
| = Proceeds After Sale | $130,304 | $161,114 | $193,729 | $228,257 | $264,809 | $303,504 | $344,469 | $390,099 | $438,481 | $489,780 |
| + Cumulative Cash Flow | $4,942 | $10,626 | $17,076 | $24,314 | $32,363 | $41,248 | $50,995 | $56,748 | $63,415 | $71,023 |
| - Initial Cash Invested | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) | ($139,480) |
| = Net Profit | ($4,234) | $32,260 | $71,326 | $113,091 | $157,692 | $205,273 | $255,984 | $307,368 | $362,416 | $421,323 |
| Internal Rate of Return | -3.0% | 11.1% | 15.2% | 16.7% | 17.2% | 17.3% | 17.3% | 17.0% | 16.7% | 16.4% |
| Return on Investment | -3.0% | 23.1% | 51.1% | 81.1% | 113.1% | 147.2% | 183.5% | 220.4% | 259.8% | 302.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.