| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $40,200 | $41,406 | $42,648 | $43,928 | $45,245 | $46,603 | $48,001 | $49,441 | $50,924 | $52,452 |
| Vacancy Losses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Income | $40,200 | $41,406 | $42,648 | $43,928 | $45,245 | $46,603 | $48,001 | $49,441 | $50,924 | $52,452 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,992) | ($2,052) | ($2,113) | ($2,177) | ($2,242) | ($2,309) | ($2,379) | ($2,450) | ($2,523) | ($2,599) |
| Insurance | ($1,170) | ($1,205) | ($1,242) | ($1,279) | ($1,317) | ($1,357) | ($1,397) | ($1,439) | ($1,483) | ($1,527) |
| Management Fees | ($4,020) | ($4,141) | ($4,265) | ($4,393) | ($4,525) | ($4,660) | ($4,800) | ($4,944) | ($5,092) | ($5,245) |
| 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 | ($4,020) | ($4,141) | ($4,265) | ($4,393) | ($4,525) | ($4,660) | ($4,800) | ($4,944) | ($5,092) | ($5,245) |
| Other | ($9,360) | ($9,641) | ($9,930) | ($10,228) | ($10,535) | ($10,851) | ($11,176) | ($11,512) | ($11,857) | ($12,213) |
| Operating Expenses | ($20,562) | ($21,179) | ($21,815) | ($22,469) | ($23,143) | ($23,837) | ($24,552) | ($25,289) | ($26,048) | ($26,829) |
| 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 | $19,638 | $20,227 | $20,834 | $21,459 | $22,102 | $22,765 | $23,448 | $24,152 | $24,876 | $25,623 |
| - Mortgage Payments | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) | ($14,165) |
| = Cash Flow | $5,473 | $6,062 | $6,669 | $7,294 | $7,938 | $8,601 | $9,284 | $9,987 | $10,712 | $11,458 |
| + Principal Reduction | $2,087 | $2,227 | $2,376 | $2,536 | $2,705 | $2,886 | $3,080 | $3,286 | $3,506 | $3,741 |
| + Appreciation | $7,470 | $7,694 | $7,925 | $8,163 | $8,408 | $8,660 | $8,920 | $9,187 | $9,463 | $9,747 |
| = Gross Equity Income | $15,030 | $15,983 | $16,970 | $17,992 | $19,051 | $20,147 | $21,283 | $22,460 | $23,681 | $24,946 |
| Capitalization Rate | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% | 7.7% |
| Cash on Cash Return | 4.6% | 5.1% | 5.7% | 6.2% | 6.7% | 7.3% | 7.9% | 8.5% | 9.1% | 9.7% |
| Return on Equity | 20.9% | 19.6% | 18.4% | 17.5% | 16.7% | 16.1% | 15.5% | 15.0% | 14.5% | 14.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $256,470 | $264,164 | $272,089 | $280,252 | $288,659 | $297,319 | $306,239 | $315,426 | $324,889 | $334,635 |
| - Loan Balance | ($184,663) | ($182,435) | ($180,059) | ($177,524) | ($174,818) | ($171,932) | ($168,852) | ($165,566) | ($162,060) | ($158,319) |
| = Equity | $71,807 | $81,729 | $92,030 | $102,728 | $113,841 | $125,387 | $137,387 | $149,860 | $162,829 | $176,316 |
| 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 | $46,160 | $55,312 | $64,821 | $74,703 | $84,975 | $95,655 | $106,763 | $118,317 | $130,340 | $142,853 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $71,807 | $81,729 | $92,030 | $102,728 | $113,841 | $125,387 | $137,387 | $149,860 | $162,829 | $176,316 |
| - Closing Costs | ($17,953) | ($18,491) | ($19,046) | ($19,618) | ($20,206) | ($20,812) | ($21,437) | ($22,080) | ($22,742) | ($23,424) |
| = Proceeds After Sale | $53,854 | $63,237 | $72,984 | $83,111 | $93,635 | $104,575 | $115,950 | $127,780 | $140,086 | $152,892 |
| + Cumulative Cash Flow | $5,473 | $11,535 | $18,204 | $25,498 | $33,436 | $42,037 | $51,320 | $61,308 | $72,019 | $83,477 |
| - Initial Cash Invested | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) | ($117,853) |
| = Net Profit | ($58,525) | ($43,080) | ($26,665) | ($9,244) | $9,218 | $28,759 | $49,418 | $71,235 | $94,253 | $118,517 |
| Internal Rate of Return | -49.7% | -21.0% | -8.7% | -2.2% | 1.7% | 4.2% | 5.9% | 7.1% | 8.0% | 8.7% |
| Return on Investment | -49.7% | -36.6% | -22.6% | -7.8% | 7.8% | 24.4% | 41.9% | 60.4% | 80.0% | 100.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.