| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $27,900 | $28,737 | $29,599 | $30,487 | $31,402 | $32,344 | $33,314 | $34,313 | $35,343 | $36,403 |
| Vacancy Losses | ($2,232) | ($2,299) | ($2,368) | ($2,439) | ($2,512) | ($2,587) | ($2,665) | ($2,745) | ($2,827) | ($2,912) |
| Operating Income | $25,668 | $26,438 | $27,231 | $28,048 | $28,890 | $29,756 | $30,649 | $31,568 | $32,515 | $33,491 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,061) | ($2,123) | ($2,187) | ($2,252) | ($2,320) | ($2,389) | ($2,461) | ($2,535) | ($2,611) | ($2,689) |
| Insurance | ($1,832) | ($1,887) | ($1,944) | ($2,002) | ($2,062) | ($2,124) | ($2,188) | ($2,253) | ($2,321) | ($2,390) |
| Management Fees | ($2,567) | ($2,644) | ($2,723) | ($2,805) | ($2,889) | ($2,976) | ($3,065) | ($3,157) | ($3,252) | ($3,349) |
| 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 | ($2,232) | ($2,299) | ($2,368) | ($2,439) | ($2,512) | ($2,587) | ($2,665) | ($2,745) | ($2,827) | ($2,912) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,692) | ($8,953) | ($9,221) | ($9,498) | ($9,783) | ($10,076) | ($10,378) | ($10,690) | ($11,011) | ($11,341) |
| 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 | $16,976 | $17,485 | $18,010 | $18,550 | $19,107 | $19,680 | $20,270 | $20,879 | $21,505 | $22,150 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $16,976 | $17,485 | $18,010 | $18,550 | $19,107 | $19,680 | $20,270 | $20,879 | $21,505 | $22,150 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $6,870 | $7,076 | $7,288 | $7,507 | $7,732 | $7,964 | $8,203 | $8,449 | $8,703 | $8,964 |
| = Gross Equity Income | $23,846 | $24,562 | $25,298 | $26,057 | $26,839 | $27,644 | $28,474 | $29,328 | $30,208 | $31,114 |
| Capitalization Rate | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% | 7.2% |
| Cash on Cash Return | 7.3% | 7.5% | 7.7% | 8.0% | 8.2% | 8.5% | 8.7% | 9.0% | 9.3% | 9.5% |
| Return on Equity | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $235,870 | $242,946 | $250,234 | $257,742 | $265,474 | $273,438 | $281,641 | $290,090 | $298,793 | $307,757 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $235,870 | $242,946 | $250,234 | $257,742 | $265,474 | $273,438 | $281,641 | $290,090 | $298,793 | $307,757 |
| Loan-to-Value Ratio | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Potential Cash-Out Refi | $212,283 | $218,651 | $225,211 | $231,967 | $238,926 | $246,094 | $253,477 | $261,081 | $268,914 | $276,981 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $235,870 | $242,946 | $250,234 | $257,742 | $265,474 | $273,438 | $281,641 | $290,090 | $298,793 | $307,757 |
| - Closing Costs | ($16,511) | ($17,006) | ($17,516) | ($18,042) | ($18,583) | ($19,141) | ($19,715) | ($20,306) | ($20,916) | ($21,543) |
| = Proceeds After Sale | $219,359 | $225,940 | $232,718 | $239,700 | $246,891 | $254,297 | $261,926 | $269,784 | $277,878 | $286,214 |
| + Cumulative Cash Flow | $16,976 | $34,462 | $52,472 | $71,022 | $90,129 | $109,809 | $130,079 | $150,958 | $172,463 | $194,613 |
| - Initial Cash Invested | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) | ($232,435) |
| = Net Profit | $3,900 | $27,967 | $52,755 | $78,287 | $104,585 | $131,671 | $159,571 | $188,307 | $217,906 | $248,392 |
| Internal Rate of Return | 1.7% | 6.1% | 7.6% | 8.3% | 8.8% | 9.1% | 9.3% | 9.4% | 9.6% | 9.7% |
| Return on Investment | 1.7% | 12.0% | 22.7% | 33.7% | 45.0% | 56.6% | 68.7% | 81.0% | 93.7% | 106.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
