| 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 | ($1,440) | ($1,483) | ($1,528) | ($1,574) | ($1,621) | ($1,669) | ($1,719) | ($1,771) | ($1,824) | ($1,879) |
| Operating Income | $34,560 | $35,597 | $36,665 | $37,765 | $38,898 | $40,065 | $41,266 | $42,504 | $43,780 | $45,093 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,825) | ($2,910) | ($2,997) | ($3,087) | ($3,180) | ($3,275) | ($3,373) | ($3,474) | ($3,579) | ($3,686) |
| Insurance | ($1,695) | ($1,746) | ($1,798) | ($1,852) | ($1,908) | ($1,965) | ($2,024) | ($2,085) | ($2,147) | ($2,212) |
| Management Fees | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| 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 | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,052) | ($7,263) | ($7,481) | ($7,706) | ($7,937) | ($8,175) | ($8,420) | ($8,673) | ($8,933) | ($9,201) |
| 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 | $27,508 | $28,333 | $29,183 | $30,059 | $30,961 | $31,889 | $32,846 | $33,831 | $34,846 | $35,892 |
| - Mortgage Payments | ($25,448) | ($25,448) | ($25,448) | ($25,448) | ($25,448) | ($25,448) | ($25,448) | ($31,715) | ($31,715) | ($31,715) |
| = Cash Flow | $2,060 | $2,885 | $3,735 | $4,611 | $5,512 | $6,441 | $7,398 | $2,117 | $3,132 | $4,177 |
| + Principal Reduction | $5,846 | $6,144 | $6,458 | $6,787 | $7,134 | $7,498 | $7,881 | $11,188 | $11,877 | $12,609 |
| + Appreciation | $22,600 | $23,504 | $24,444 | $25,421 | $26,438 | $27,496 | $28,596 | $29,740 | $30,929 | $32,166 |
| = Gross Equity Income | $30,505 | $32,533 | $34,637 | $36,820 | $39,085 | $41,435 | $43,875 | $43,045 | $45,938 | $48,952 |
| Capitalization Rate | 4.7% | 4.6% | 4.6% | 4.5% | 4.5% | 4.5% | 4.4% | 4.4% | 4.3% | 4.3% |
| Cash on Cash Return | 1.2% | 1.6% | 2.1% | 2.6% | 3.1% | 3.6% | 4.1% | 1.2% | 1.7% | 2.3% |
| Return on Equity | 15.4% | 14.3% | 13.4% | 12.7% | 12.1% | 11.5% | 11.1% | 9.9% | 9.6% | 9.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $587,590 | $611,093 | $635,537 | $660,958 | $687,397 | $714,893 | $743,488 | $773,228 | $804,157 | $836,323 |
| - Loan Balance | ($389,647) | ($383,503) | ($377,046) | ($370,258) | ($363,124) | ($355,626) | ($347,745) | ($336,557) | ($324,679) | ($312,071) |
| = Equity | $197,942 | $227,590 | $258,491 | $290,700 | $324,272 | $359,266 | $395,743 | $436,671 | $479,478 | $524,253 |
| Loan-to-Value Ratio | 66.3% | 62.8% | 59.3% | 56.0% | 52.8% | 49.7% | 46.8% | 43.5% | 40.4% | 37.3% |
| Potential Cash-Out Refi | $139,183 | $166,480 | $194,938 | $224,604 | $255,533 | $287,777 | $321,394 | $359,348 | $399,062 | $440,620 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $197,942 | $227,590 | $258,491 | $290,700 | $324,272 | $359,266 | $395,743 | $436,671 | $479,478 | $524,253 |
| - Closing Costs | ($41,131) | ($42,777) | ($44,488) | ($46,267) | ($48,118) | ($50,042) | ($52,044) | ($54,126) | ($56,291) | ($58,543) |
| = Proceeds After Sale | $156,811 | $184,813 | $214,004 | $244,433 | $276,155 | $309,224 | $343,699 | $382,545 | $423,187 | $465,710 |
| + Cumulative Cash Flow | $2,060 | $4,945 | $8,680 | $13,291 | $18,803 | $25,245 | $32,643 | $34,759 | $37,891 | $42,069 |
| - Initial Cash Invested | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) | ($179,102) |
| = Net Profit | ($20,231) | $10,656 | $43,582 | $78,622 | $115,856 | $155,367 | $197,240 | $238,203 | $281,976 | $328,677 |
| Internal Rate of Return | -11.3% | 2.9% | 7.6% | 9.7% | 10.7% | 11.3% | 11.6% | 11.6% | 11.6% | 11.6% |
| Return on Investment | -11.3% | 5.9% | 24.3% | 43.9% | 64.7% | 86.7% | 110.1% | 133.0% | 157.4% | 183.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.