| 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 | ($2,238) | ($2,305) | ($2,374) | ($2,445) | ($2,519) | ($2,594) | ($2,672) | ($2,752) | ($2,835) | ($2,920) |
| Insurance | ($1,399) | ($1,441) | ($1,484) | ($1,528) | ($1,574) | ($1,622) | ($1,670) | ($1,720) | ($1,772) | ($1,825) |
| 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 | ($1,140) | ($1,174) | ($1,209) | ($1,246) | ($1,283) | ($1,322) | ($1,361) | ($1,402) | ($1,444) | ($1,487) |
| Maintenance | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,529) | ($6,725) | ($6,926) | ($7,134) | ($7,348) | ($7,569) | ($7,796) | ($8,029) | ($8,270) | ($8,518) |
| 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 | $26,591 | $27,389 | $28,211 | $29,057 | $29,929 | $30,827 | $31,751 | $32,704 | $33,685 | $34,696 |
| - Mortgage Payments | ($25,200) | ($25,200) | ($25,200) | ($25,200) | ($25,200) | ($25,200) | ($25,200) | ($31,406) | ($31,406) | ($31,406) |
| = Cash Flow | $1,391 | $2,189 | $3,010 | $3,857 | $4,728 | $5,626 | $6,551 | $1,298 | $2,279 | $3,290 |
| + Principal Reduction | $5,789 | $6,084 | $6,395 | $6,721 | $7,064 | $7,425 | $7,804 | $11,080 | $11,762 | $12,486 |
| + Appreciation | $33,569 | $35,584 | $37,719 | $39,982 | $42,381 | $44,923 | $47,619 | $50,476 | $53,505 | $56,715 |
| = Gross Equity Income | $40,749 | $43,856 | $47,124 | $50,560 | $54,173 | $57,975 | $61,974 | $62,854 | $67,545 | $72,491 |
| Capitalization Rate | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% |
| Cash on Cash Return | 0.8% | 1.2% | 1.7% | 2.2% | 2.7% | 3.2% | 3.7% | 0.7% | 1.3% | 1.9% |
| Return on Equity | 19.7% | 17.6% | 16.1% | 14.9% | 13.9% | 13.1% | 12.5% | 11.3% | 10.8% | 10.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $593,059 | $628,643 | $666,362 | $706,343 | $748,724 | $793,647 | $841,266 | $891,742 | $945,247 | $1,001,961 |
| - Loan Balance | ($385,854) | ($379,770) | ($373,376) | ($366,654) | ($359,590) | ($352,165) | ($344,361) | ($333,281) | ($321,519) | ($309,033) |
| = Equity | $207,205 | $248,873 | $292,986 | $339,689 | $389,134 | $441,483 | $496,906 | $558,461 | $623,727 | $692,928 |
| 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 | $147,899 | $186,008 | $226,350 | $269,055 | $314,262 | $362,118 | $412,779 | $469,287 | $529,203 | $592,732 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $207,205 | $248,873 | $292,986 | $339,689 | $389,134 | $441,483 | $496,906 | $558,461 | $623,727 | $692,928 |
| - Closing Costs | ($41,514) | ($44,005) | ($46,645) | ($49,444) | ($52,411) | ($55,555) | ($58,889) | ($62,422) | ($66,167) | ($70,137) |
| = Proceeds After Sale | $165,691 | $204,868 | $246,341 | $290,245 | $336,723 | $385,927 | $438,017 | $496,039 | $557,560 | $622,791 |
| + Cumulative Cash Flow | $1,391 | $3,580 | $6,590 | $10,447 | $15,175 | $20,801 | $27,352 | $28,651 | $30,930 | $34,220 |
| - Initial Cash Invested | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) | ($177,358) |
| = Net Profit | ($10,277) | $31,089 | $75,572 | $123,333 | $174,540 | $229,370 | $288,011 | $347,331 | $411,132 | $479,652 |
| Internal Rate of Return | -5.8% | 8.4% | 12.7% | 14.3% | 14.9% | 15.1% | 15.2% | 15.0% | 14.7% | 14.5% |
| Return on Investment | -5.8% | 17.5% | 42.6% | 69.5% | 98.4% | 129.3% | 162.4% | 195.8% | 231.8% | 270.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
