| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $35,880 | $36,956 | $38,065 | $39,207 | $40,383 | $41,595 | $42,843 | $44,128 | $45,452 | $46,815 |
| Vacancy Losses | ($2,870) | ($2,957) | ($3,045) | ($3,137) | ($3,231) | ($3,328) | ($3,427) | ($3,530) | ($3,636) | ($3,745) |
| Operating Income | $33,010 | $34,000 | $35,020 | $36,070 | $37,153 | $38,267 | $39,415 | $40,598 | $41,816 | $43,070 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,190) | ($5,346) | ($5,506) | ($5,671) | ($5,841) | ($6,017) | ($6,197) | ($6,383) | ($6,575) | ($6,772) |
| Insurance | ($1,687) | ($1,737) | ($1,789) | ($1,843) | ($1,898) | ($1,955) | ($2,014) | ($2,074) | ($2,137) | ($2,201) |
| Management Fees | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| 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 | ($718) | ($739) | ($761) | ($784) | ($808) | ($832) | ($857) | ($883) | ($909) | ($936) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,314) | ($8,564) | ($8,821) | ($9,085) | ($9,358) | ($9,639) | ($9,928) | ($10,226) | ($10,532) | ($10,848) |
| 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 | $24,695 | $25,436 | $26,199 | $26,985 | $27,795 | $28,629 | $29,487 | $30,372 | $31,283 | $32,222 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $24,695 | $25,436 | $26,199 | $26,985 | $27,795 | $28,629 | $29,487 | $30,372 | $31,283 | $32,222 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $25,950 | $27,507 | $29,157 | $30,907 | $32,761 | $34,727 | $36,811 | $39,019 | $41,360 | $43,842 |
| = Gross Equity Income | $50,645 | $52,943 | $55,357 | $57,892 | $60,556 | $63,356 | $66,298 | $69,391 | $72,644 | $76,064 |
| Capitalization Rate | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% |
| Cash on Cash Return | 5.7% | 5.8% | 6.0% | 6.2% | 6.4% | 6.6% | 6.8% | 7.0% | 7.2% | 7.4% |
| Return on Equity | 11.0% | 10.9% | 10.7% | 10.6% | 10.5% | 10.3% | 10.2% | 10.1% | 9.9% | 9.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| 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 | $343,838 | $364,468 | $386,336 | $409,516 | $434,087 | $460,132 | $487,740 | $517,004 | $548,025 | $580,906 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $458,450 | $485,957 | $515,114 | $546,021 | $578,783 | $613,510 | $650,320 | $689,339 | $730,700 | $774,542 |
| - Closing Costs | ($32,092) | ($34,017) | ($36,058) | ($38,221) | ($40,515) | ($42,946) | ($45,522) | ($48,254) | ($51,149) | ($54,218) |
| = Proceeds After Sale | $426,359 | $451,940 | $479,056 | $507,800 | $538,268 | $570,564 | $604,798 | $641,086 | $679,551 | $720,324 |
| + Cumulative Cash Flow | $24,695 | $50,131 | $76,331 | $103,316 | $131,110 | $159,739 | $189,226 | $219,598 | $250,882 | $283,103 |
| - Initial Cash Invested | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) | ($436,825) |
| = Net Profit | $14,229 | $65,246 | $118,562 | $174,291 | $232,553 | $293,478 | $357,199 | $423,859 | $493,607 | $566,602 |
| Internal Rate of Return | 3.3% | 7.4% | 8.8% | 9.4% | 9.8% | 10.0% | 10.2% | 10.2% | 10.3% | 10.3% |
| Return on Investment | 3.3% | 14.9% | 27.1% | 39.9% | 53.2% | 67.2% | 81.8% | 97.0% | 113.0% | 129.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.