| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $32,400 | $33,372 | $34,373 | $35,404 | $36,466 | $37,560 | $38,687 | $39,848 | $41,043 | $42,275 |
| Vacancy Losses | ($2,592) | ($2,670) | ($2,750) | ($2,832) | ($2,917) | ($3,005) | ($3,095) | ($3,188) | ($3,283) | ($3,382) |
| Operating Income | $29,808 | $30,702 | $31,623 | $32,572 | $33,549 | $34,556 | $35,592 | $36,660 | $37,760 | $38,893 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,867) | ($2,953) | ($3,042) | ($3,133) | ($3,227) | ($3,324) | ($3,424) | ($3,526) | ($3,632) | ($3,741) |
| Insurance | ($1,195) | ($1,231) | ($1,267) | ($1,306) | ($1,345) | ($1,385) | ($1,427) | ($1,469) | ($1,513) | ($1,559) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,500) | ($1,545) | ($1,591) | ($1,639) | ($1,688) | ($1,739) | ($1,791) | ($1,845) | ($1,900) | ($1,957) |
| Maintenance | ($648) | ($667) | ($687) | ($708) | ($729) | ($751) | ($774) | ($797) | ($821) | ($845) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,242) | ($7,459) | ($7,683) | ($7,914) | ($8,151) | ($8,396) | ($8,647) | ($8,907) | ($9,174) | ($9,449) |
| 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 | $22,566 | $23,243 | $23,940 | $24,658 | $25,398 | $26,160 | $26,945 | $27,753 | $28,586 | $29,443 |
| - Mortgage Payments | ($21,525) | ($21,525) | ($21,525) | ($21,525) | ($21,525) | ($21,525) | ($21,525) | ($26,825) | ($26,825) | ($26,825) |
| = Cash Flow | $1,041 | $1,718 | $2,415 | $3,133 | $3,873 | $4,635 | $5,420 | $928 | $1,760 | $2,618 |
| + Principal Reduction | $4,944 | $5,197 | $5,462 | $5,741 | $6,034 | $6,342 | $6,666 | $9,464 | $10,046 | $10,665 |
| + Appreciation | $28,673 | $30,394 | $32,217 | $34,150 | $36,200 | $38,371 | $40,674 | $43,114 | $45,701 | $48,443 |
| = Gross Equity Income | $34,659 | $37,309 | $40,095 | $43,025 | $46,107 | $49,349 | $52,760 | $53,506 | $57,508 | $61,726 |
| Capitalization Rate | 4.5% | 4.3% | 4.2% | 4.1% | 4.0% | 3.9% | 3.7% | 3.6% | 3.5% | 3.4% |
| Cash on Cash Return | 0.7% | 1.1% | 1.6% | 2.1% | 2.6% | 3.1% | 3.6% | 0.6% | 1.2% | 1.7% |
| Return on Equity | 19.6% | 17.6% | 16.0% | 14.8% | 13.9% | 13.1% | 12.4% | 11.2% | 10.8% | 10.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $506,563 | $536,957 | $569,175 | $603,325 | $639,525 | $677,896 | $718,570 | $761,684 | $807,385 | $855,828 |
| - Loan Balance | ($329,579) | ($324,382) | ($318,920) | ($313,179) | ($307,145) | ($300,802) | ($294,136) | ($284,673) | ($274,626) | ($263,961) |
| = Equity | $176,985 | $212,575 | $250,255 | $290,146 | $332,380 | $377,094 | $424,434 | $477,012 | $532,759 | $591,867 |
| Loan-to-Value Ratio | 65.1% | 60.4% | 56.0% | 51.9% | 48.0% | 44.4% | 40.9% | 37.4% | 34.0% | 30.8% |
| Potential Cash-Out Refi | $126,328 | $158,880 | $193,338 | $229,814 | $268,428 | $309,304 | $352,577 | $400,843 | $452,020 | $506,284 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $176,985 | $212,575 | $250,255 | $290,146 | $332,380 | $377,094 | $424,434 | $477,012 | $532,759 | $591,867 |
| - Closing Costs | ($35,459) | ($37,587) | ($39,842) | ($42,233) | ($44,767) | ($47,453) | ($50,300) | ($53,318) | ($56,517) | ($59,908) |
| = Proceeds After Sale | $141,525 | $174,988 | $210,413 | $247,914 | $287,613 | $329,641 | $374,134 | $423,694 | $476,242 | $531,959 |
| + Cumulative Cash Flow | $1,041 | $2,759 | $5,174 | $8,307 | $12,181 | $16,816 | $22,236 | $23,163 | $24,924 | $27,542 |
| - Approximate Cash Invested | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) | ($151,491) |
| = Net Profit | ($8,925) | $26,256 | $64,096 | $104,730 | $148,303 | $194,966 | $244,878 | $295,366 | $349,675 | $408,010 |
| Internal Rate of Return | -5.9% | 8.3% | 12.6% | 14.2% | 14.8% | 15.1% | 15.1% | 14.9% | 14.7% | 14.4% |
| Return on Investment | -5.9% | 17.3% | 42.3% | 69.1% | 97.9% | 128.7% | 161.6% | 195.0% | 230.8% | 269.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.