| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $86,400 | $88,992 | $91,662 | $94,412 | $97,244 | $100,161 | $103,166 | $106,261 | $109,449 | $112,732 |
| Vacancy Losses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Income | $86,400 | $88,992 | $91,662 | $94,412 | $97,244 | $100,161 | $103,166 | $106,261 | $109,449 | $112,732 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,192) | ($3,288) | ($3,386) | ($3,488) | ($3,593) | ($3,700) | ($3,811) | ($3,926) | ($4,044) | ($4,165) |
| Insurance | ($1,875) | ($1,932) | ($1,990) | ($2,049) | ($2,111) | ($2,174) | ($2,239) | ($2,306) | ($2,376) | ($2,447) |
| Management Fees | ($8,640) | ($8,899) | ($9,166) | ($9,441) | ($9,724) | ($10,016) | ($10,317) | ($10,626) | ($10,945) | ($11,273) |
| 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 | ($8,640) | ($8,899) | ($9,166) | ($9,441) | ($9,724) | ($10,016) | ($10,317) | ($10,626) | ($10,945) | ($11,273) |
| Other | ($21,000) | ($21,630) | ($22,279) | ($22,947) | ($23,636) | ($24,345) | ($25,075) | ($25,827) | ($26,602) | ($27,400) |
| Operating Expenses | ($43,347) | ($44,648) | ($45,987) | ($47,367) | ($48,788) | ($50,251) | ($51,759) | ($53,312) | ($54,911) | ($56,558) |
| 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 | $43,053 | $44,344 | $45,675 | $47,045 | $48,456 | $49,910 | $51,407 | $52,949 | $54,538 | $56,174 |
| - Mortgage Payments | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) | ($22,698) |
| = Cash Flow | $20,355 | $21,647 | $22,977 | $24,347 | $25,759 | $27,212 | $28,710 | $30,252 | $31,840 | $33,476 |
| + Principal Reduction | $3,345 | $3,569 | $3,808 | $4,063 | $4,335 | $4,625 | $4,935 | $5,265 | $5,618 | $5,994 |
| + Appreciation | $11,970 | $12,329 | $12,699 | $13,080 | $13,472 | $13,877 | $14,293 | $14,722 | $15,163 | $15,618 |
| = Gross Equity Income | $35,670 | $37,545 | $39,484 | $41,490 | $43,566 | $45,714 | $47,937 | $50,239 | $52,622 | $55,089 |
| Capitalization Rate | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% | 10.5% |
| Cash on Cash Return | 9.8% | 10.4% | 11.0% | 11.7% | 12.3% | 13.0% | 13.8% | 14.5% | 15.3% | 16.0% |
| Return on Equity | 31.0% | 28.7% | 26.8% | 25.2% | 23.9% | 22.8% | 21.8% | 20.9% | 20.2% | 19.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $410,970 | $423,299 | $435,998 | $449,078 | $462,550 | $476,427 | $490,720 | $505,441 | $520,605 | $536,223 |
| - Loan Balance | ($295,905) | ($292,337) | ($288,529) | ($284,466) | ($280,131) | ($275,506) | ($270,571) | ($265,306) | ($259,688) | ($253,693) |
| = Equity | $115,065 | $130,963 | $147,469 | $164,612 | $182,419 | $200,921 | $220,149 | $240,136 | $260,917 | $282,529 |
| Loan-to-Value Ratio | 72.0% | 69.1% | 66.2% | 63.3% | 60.6% | 57.8% | 55.1% | 52.5% | 49.9% | 47.3% |
| Potential Cash-Out Refi | $73,968 | $88,633 | $103,870 | $119,704 | $136,164 | $153,278 | $171,077 | $189,592 | $208,857 | $228,907 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $115,065 | $130,963 | $147,469 | $164,612 | $182,419 | $200,921 | $220,149 | $240,136 | $260,917 | $282,529 |
| - Closing Costs | ($28,768) | ($29,631) | ($30,520) | ($31,435) | ($32,379) | ($33,350) | ($34,350) | ($35,381) | ($36,442) | ($37,536) |
| = Proceeds After Sale | $86,297 | $101,332 | $116,949 | $133,177 | $150,041 | $167,571 | $185,798 | $204,755 | $224,475 | $244,994 |
| + Cumulative Cash Flow | $20,355 | $42,002 | $64,979 | $89,326 | $115,085 | $142,297 | $171,007 | $201,259 | $233,099 | $266,576 |
| - Initial Cash Invested | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) | ($208,728) |
| = Net Profit | ($102,075) | ($65,394) | ($26,799) | $13,775 | $56,398 | $101,141 | $148,078 | $197,286 | $248,846 | $302,842 |
| Internal Rate of Return | -48.9% | -18.2% | -5.0% | 1.9% | 6.0% | 8.6% | 10.3% | 11.5% | 12.4% | 13.0% |
| Return on Investment | -48.9% | -31.3% | -12.8% | 6.6% | 27.0% | 48.5% | 70.9% | 94.5% | 119.2% | 145.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.