Co-living Marietta
Marietta, GA 30060
8bd • 3ba • Built: 1966 • Remodeled: 2022
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $83,136 | $85,630 | $88,199 | $90,845 | $93,570 | $96,377 | $99,269 | $102,247 | $105,314 | $108,474 |
| Vacancy Losses | ($11,639) | ($11,988) | ($12,348) | ($12,718) | ($13,100) | ($13,493) | ($13,898) | ($14,315) | ($14,744) | ($15,186) |
| Operating Income | $71,497 | $73,642 | $75,851 | $78,127 | $80,470 | $82,885 | $85,371 | $87,932 | $90,570 | $93,287 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,306) | ($5,465) | ($5,629) | ($5,798) | ($5,972) | ($6,151) | ($6,336) | ($6,526) | ($6,721) | ($6,923) |
| Insurance | ($2,464) | ($2,537) | ($2,614) | ($2,692) | ($2,773) | ($2,856) | ($2,942) | ($3,030) | ($3,121) | ($3,214) |
| Management Fees | ($11,440) | ($11,783) | ($12,136) | ($12,500) | ($12,875) | ($13,262) | ($13,659) | ($14,069) | ($14,491) | ($14,926) |
| 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 | ($3,741) | ($3,853) | ($3,969) | ($4,088) | ($4,211) | ($4,337) | ($4,467) | ($4,601) | ($4,739) | ($4,881) |
| Other | ($12,600) | ($12,978) | ($13,367) | ($13,768) | ($14,181) | ($14,607) | ($15,045) | ($15,496) | ($15,961) | ($16,440) |
| Operating Expenses | ($35,550) | ($36,617) | ($37,715) | ($38,847) | ($40,012) | ($41,212) | ($42,449) | ($43,722) | ($45,034) | ($46,385) |
| 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 | $35,947 | $37,025 | $38,136 | $39,280 | $40,458 | $41,672 | $42,922 | $44,210 | $45,536 | $46,902 |
| - Mortgage Payments | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) | ($21,560) |
| = Cash Flow | $14,387 | $15,465 | $16,576 | $17,720 | $18,899 | $20,112 | $21,363 | $22,650 | $23,977 | $25,343 |
| + Principal Reduction | $3,177 | $3,390 | $3,617 | $3,859 | $4,118 | $4,393 | $4,688 | $5,002 | $5,336 | $5,694 |
| + Appreciation | $22,740 | $24,104 | $25,551 | $27,084 | $28,709 | $30,431 | $32,257 | $34,193 | $36,244 | $38,419 |
| = Gross Equity Income | $40,304 | $42,960 | $45,744 | $48,663 | $51,725 | $54,937 | $58,307 | $61,844 | $65,557 | $69,455 |
| Capitalization Rate | 8.9% | 8.7% | 8.4% | 8.2% | 8.0% | 7.8% | 7.5% | 7.3% | 7.1% | 6.9% |
| Cash on Cash Return | 13.6% | 14.6% | 15.6% | 16.7% | 17.8% | 19.0% | 20.1% | 21.3% | 22.6% | 23.9% |
| Return on Equity | 33.4% | 29.0% | 25.8% | 23.4% | 21.5% | 19.9% | 18.6% | 17.6% | 16.7% | 15.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $401,740 | $425,844 | $451,395 | $478,479 | $507,187 | $537,619 | $569,876 | $604,068 | $640,313 | $678,731 |
| - Loan Balance | ($281,073) | ($277,683) | ($274,066) | ($270,207) | ($266,089) | ($261,696) | ($257,009) | ($252,007) | ($246,671) | ($240,977) |
| = Equity | $120,667 | $148,161 | $177,329 | $208,272 | $241,098 | $275,923 | $312,867 | $352,061 | $393,642 | $437,755 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $80,493 | $105,577 | $132,189 | $160,424 | $190,379 | $222,161 | $255,880 | $291,655 | $329,611 | $369,881 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $120,667 | $148,161 | $177,329 | $208,272 | $241,098 | $275,923 | $312,867 | $352,061 | $393,642 | $437,755 |
| - Closing Costs | ($28,122) | ($29,809) | ($31,598) | ($33,494) | ($35,503) | ($37,633) | ($39,891) | ($42,285) | ($44,822) | ($47,511) |
| = Proceeds After Sale | $92,545 | $118,352 | $145,731 | $174,778 | $205,595 | $238,289 | $272,976 | $309,777 | $348,820 | $390,243 |
| + Cumulative Cash Flow | $14,387 | $29,852 | $46,429 | $64,149 | $83,048 | $103,160 | $124,523 | $147,173 | $171,149 | $196,492 |
| - Approximate Cash Invested | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) | ($106,120) |
| = Net Profit | $812 | $42,085 | $86,040 | $132,807 | $182,522 | $235,329 | $291,379 | $350,829 | $413,849 | $480,615 |
| Internal Rate of Return | 0.8% | 19.3% | 24.3% | 25.9% | 26.3% | 26.2% | 25.9% | 25.6% | 25.2% | 24.8% |
| Return on Investment | 0.8% | 39.7% | 81.1% | 125.1% | 172.0% | 221.8% | 274.6% | 330.6% | 390.0% | 452.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.