| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $33,600 | $34,608 | $35,646 | $36,716 | $37,817 | $38,952 | $40,120 | $41,324 | $42,563 | $43,840 |
| Vacancy Losses | ($2,688) | ($2,769) | ($2,852) | ($2,937) | ($3,025) | ($3,116) | ($3,210) | ($3,306) | ($3,405) | ($3,507) |
| Operating Income | $30,912 | $31,839 | $32,795 | $33,778 | $34,792 | $35,835 | $36,911 | $38,018 | $39,158 | $40,333 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,730) | ($2,812) | ($2,896) | ($2,983) | ($3,073) | ($3,165) | ($3,260) | ($3,357) | ($3,458) | ($3,562) |
| Insurance | ($1,137) | ($1,172) | ($1,207) | ($1,243) | ($1,280) | ($1,319) | ($1,358) | ($1,399) | ($1,441) | ($1,484) |
| 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 | ($1,500) | ($1,545) | ($1,591) | ($1,639) | ($1,688) | ($1,739) | ($1,791) | ($1,845) | ($1,900) | ($1,957) |
| Maintenance | ($672) | ($692) | ($713) | ($734) | ($756) | ($779) | ($802) | ($826) | ($851) | ($877) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,071) | ($7,284) | ($7,502) | ($7,727) | ($7,959) | ($8,198) | ($8,444) | ($8,697) | ($8,958) | ($9,227) |
| 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 | $23,841 | $24,556 | $25,292 | $26,051 | $26,833 | $27,638 | $28,467 | $29,321 | $30,201 | $31,107 |
| - Mortgage Payments | ($20,493) | ($20,493) | ($20,493) | ($20,493) | ($20,493) | ($20,493) | ($20,493) | ($25,540) | ($25,540) | ($25,540) |
| = Cash Flow | $3,347 | $4,062 | $4,799 | $5,558 | $6,339 | $7,144 | $7,973 | $3,781 | $4,661 | $5,567 |
| + Principal Reduction | $4,707 | $4,948 | $5,200 | $5,466 | $5,745 | $6,038 | $6,347 | $9,010 | $9,565 | $10,154 |
| + Appreciation | $27,299 | $28,937 | $30,674 | $32,514 | $34,465 | $36,533 | $38,725 | $41,048 | $43,511 | $46,122 |
| = Gross Equity Income | $35,354 | $37,947 | $40,673 | $43,538 | $46,549 | $49,715 | $53,045 | $53,839 | $57,737 | $61,842 |
| Capitalization Rate | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | 2.3% | 2.8% | 3.3% | 3.9% | 4.4% | 5.0% | 5.5% | 2.6% | 3.2% | 3.9% |
| Return on Equity | 21.0% | 18.7% | 17.1% | 15.8% | 14.7% | 13.8% | 13.1% | 11.9% | 11.4% | 11.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $482,289 | $511,227 | $541,900 | $574,414 | $608,879 | $645,412 | $684,137 | $725,185 | $768,696 | $814,818 |
| - Loan Balance | ($313,786) | ($308,838) | ($303,638) | ($298,172) | ($292,427) | ($286,389) | ($280,042) | ($271,032) | ($261,467) | ($251,313) |
| = Equity | $168,504 | $202,389 | $238,263 | $276,243 | $316,452 | $359,023 | $404,095 | $454,153 | $507,229 | $563,505 |
| 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 | $120,275 | $151,266 | $184,073 | $218,801 | $255,565 | $294,482 | $335,681 | $381,635 | $430,359 | $482,023 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $168,504 | $202,389 | $238,263 | $276,243 | $316,452 | $359,023 | $404,095 | $454,153 | $507,229 | $563,505 |
| - Closing Costs | ($33,760) | ($35,786) | ($37,933) | ($40,209) | ($42,622) | ($45,179) | ($47,890) | ($50,763) | ($53,809) | ($57,037) |
| = Proceeds After Sale | $134,744 | $166,603 | $200,330 | $236,034 | $273,831 | $313,845 | $356,205 | $403,390 | $453,420 | $506,467 |
| + Cumulative Cash Flow | $3,347 | $7,409 | $12,208 | $17,766 | $24,106 | $31,250 | $39,223 | $43,004 | $47,665 | $53,231 |
| - Initial Cash Invested | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) | ($144,232) |
| = Net Profit | ($6,141) | $29,781 | $68,306 | $109,568 | $153,705 | $200,863 | $251,197 | $302,162 | $356,853 | $415,467 |
| Internal Rate of Return | -4.3% | 9.9% | 14.1% | 15.6% | 16.2% | 16.4% | 16.3% | 16.1% | 15.8% | 15.6% |
| Return on Investment | -4.3% | 20.6% | 47.4% | 76.0% | 106.6% | 139.3% | 174.2% | 209.5% | 247.4% | 288.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.