| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $25,200 | $25,956 | $26,735 | $27,537 | $28,363 | $29,214 | $30,090 | $30,993 | $31,923 | $32,880 |
| Vacancy Losses | ($2,016) | ($2,076) | ($2,139) | ($2,203) | ($2,269) | ($2,337) | ($2,407) | ($2,479) | ($2,554) | ($2,630) |
| Operating Income | $23,184 | $23,880 | $24,596 | $25,334 | $26,094 | $26,877 | $27,683 | $28,513 | $29,369 | $30,250 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,115) | ($2,178) | ($2,244) | ($2,311) | ($2,380) | ($2,452) | ($2,525) | ($2,601) | ($2,679) | ($2,760) |
| Insurance | ($634) | ($654) | ($673) | ($693) | ($714) | ($736) | ($758) | ($780) | ($804) | ($828) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Maintenance | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,333) | ($4,463) | ($4,597) | ($4,735) | ($4,877) | ($5,024) | ($5,174) | ($5,330) | ($5,489) | ($5,654) |
| 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 | $18,851 | $19,416 | $19,999 | $20,599 | $21,216 | $21,853 | $22,509 | $23,184 | $23,879 | $24,596 |
| - Mortgage Payments | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) | ($18,136) |
| = Cash Flow | $715 | $1,280 | $1,863 | $2,463 | $3,081 | $3,717 | $4,373 | $5,048 | $5,744 | $6,460 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $25,379 | $26,902 | $28,516 | $30,227 | $32,041 | $33,963 | $36,001 | $38,161 | $40,451 | $42,878 |
| = Gross Equity Income | $26,094 | $28,183 | $30,379 | $32,690 | $35,122 | $37,681 | $40,374 | $43,209 | $46,195 | $49,338 |
| Capitalization Rate | 4.2% | 4.1% | 4.0% | 3.9% | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% | 3.2% |
| Cash on Cash Return | 0.5% | 0.8% | 1.2% | 1.6% | 2.0% | 2.4% | 2.9% | 3.3% | 3.8% | 4.2% |
| Return on Equity | 17.1% | 15.7% | 14.6% | 13.7% | 13.0% | 12.4% | 11.9% | 11.4% | 11.0% | 10.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $448,369 | $475,272 | $503,788 | $534,015 | $566,056 | $600,019 | $636,021 | $674,182 | $714,633 | $757,511 |
| - Loan Balance | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) | ($296,093) |
| = Equity | $152,276 | $179,179 | $207,695 | $237,922 | $269,963 | $303,926 | $339,928 | $378,089 | $418,540 | $461,418 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $107,439 | $131,651 | $157,316 | $184,521 | $213,357 | $243,924 | $276,326 | $310,671 | $347,076 | $385,667 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $152,276 | $179,179 | $207,695 | $237,922 | $269,963 | $303,926 | $339,928 | $378,089 | $418,540 | $461,418 |
| - Closing Costs | ($31,386) | ($33,269) | ($35,265) | ($37,381) | ($39,624) | ($42,001) | ($44,521) | ($47,193) | ($50,024) | ($53,026) |
| = Proceeds After Sale | $120,891 | $145,910 | $172,430 | $200,541 | $230,339 | $261,925 | $295,406 | $330,896 | $368,515 | $408,392 |
| + Cumulative Cash Flow | $715 | $1,995 | $3,858 | $6,321 | $9,402 | $13,119 | $17,492 | $22,540 | $28,283 | $34,743 |
| - Approximate Cash Invested | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) | ($152,450) |
| = Net Profit | ($30,844) | ($4,545) | $23,838 | $54,412 | $87,291 | $122,594 | $160,448 | $200,986 | $244,349 | $290,686 |
| Internal Rate of Return | -20.2% | -1.5% | 5.0% | 8.0% | 9.6% | 10.5% | 11.0% | 11.4% | 11.5% | 11.6% |
| Return on Investment | -20.2% | -3.0% | 15.6% | 35.7% | 57.3% | 80.4% | 105.2% | 131.8% | 160.3% | 190.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.