| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $36,000 | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 |
| Vacancy Losses | ($2,880) | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) |
| Operating Income | $33,120 | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,789) | ($2,873) | ($2,959) | ($3,048) | ($3,139) | ($3,234) | ($3,331) | ($3,431) | ($3,533) | ($3,639) |
| Insurance | ($1,162) | ($1,197) | ($1,233) | ($1,270) | ($1,308) | ($1,347) | ($1,388) | ($1,429) | ($1,472) | ($1,516) |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,704) | ($5,875) | ($6,051) | ($6,232) | ($6,419) | ($6,612) | ($6,810) | ($7,015) | ($7,225) | ($7,442) |
| 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 | $27,416 | $28,239 | $29,086 | $29,959 | $30,857 | $31,783 | $32,737 | $33,719 | $34,730 | $35,772 |
| - Mortgage Payments | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) | ($21,559) |
| = Cash Flow | $5,857 | $6,680 | $7,527 | $8,399 | $9,298 | $10,224 | $11,177 | $12,159 | $13,171 | $14,213 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $27,893 | $29,567 | $31,341 | $33,221 | $35,215 | $37,328 | $39,567 | $41,941 | $44,458 | $47,125 |
| = Gross Equity Income | $33,751 | $36,247 | $38,868 | $41,621 | $44,513 | $47,552 | $50,745 | $54,101 | $57,629 | $61,338 |
| Capitalization Rate | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% |
| Cash on Cash Return | 4.0% | 4.5% | 5.1% | 5.7% | 6.3% | 6.9% | 7.6% | 8.3% | 8.9% | 9.6% |
| Return on Equity | 20.2% | 18.4% | 17.0% | 15.9% | 15.0% | 14.2% | 13.6% | 13.0% | 12.5% | 12.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $492,783 | $522,350 | $553,691 | $586,913 | $622,128 | $659,455 | $699,023 | $740,964 | $785,422 | $832,547 |
| - Loan Balance | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) | ($325,423) |
| = Equity | $167,360 | $196,927 | $228,268 | $261,490 | $296,705 | $334,032 | $373,600 | $415,541 | $459,999 | $507,124 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $118,082 | $144,692 | $172,899 | $202,799 | $234,492 | $268,087 | $303,697 | $341,445 | $381,457 | $423,869 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $167,360 | $196,927 | $228,268 | $261,490 | $296,705 | $334,032 | $373,600 | $415,541 | $459,999 | $507,124 |
| - Closing Costs | ($34,495) | ($36,565) | ($38,758) | ($41,084) | ($43,549) | ($46,162) | ($48,932) | ($51,867) | ($54,980) | ($58,278) |
| = Proceeds After Sale | $132,866 | $160,363 | $189,510 | $220,406 | $253,156 | $287,870 | $324,668 | $363,674 | $405,019 | $448,846 |
| + Cumulative Cash Flow | $5,857 | $12,537 | $20,063 | $28,463 | $37,761 | $47,985 | $59,162 | $71,322 | $84,493 | $98,706 |
| - Initial Cash Invested | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) | ($147,370) |
| = Net Profit | ($8,647) | $25,529 | $62,203 | $101,499 | $143,547 | $188,485 | $236,460 | $287,625 | $342,142 | $400,181 |
| Internal Rate of Return | -5.9% | 8.5% | 12.9% | 14.7% | 15.5% | 15.8% | 15.9% | 15.9% | 15.8% | 15.7% |
| Return on Investment | -5.9% | 17.3% | 42.2% | 68.9% | 97.4% | 127.9% | 160.5% | 195.2% | 232.2% | 271.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
