| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $27,180 | $27,995 | $28,835 | $29,700 | $30,591 | $31,509 | $32,454 | $33,428 | $34,431 | $35,464 |
| Vacancy Losses | ($2,174) | ($2,240) | ($2,307) | ($2,376) | ($2,447) | ($2,521) | ($2,596) | ($2,674) | ($2,754) | ($2,837) |
| Operating Income | $25,006 | $25,756 | $26,528 | $27,324 | $28,144 | $28,988 | $29,858 | $30,754 | $31,676 | $32,627 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,994) | ($5,143) | ($5,298) | ($5,457) | ($5,620) | ($5,789) | ($5,963) | ($6,141) | ($6,326) | ($6,515) |
| Insurance | ($732) | ($754) | ($777) | ($800) | ($824) | ($849) | ($875) | ($901) | ($928) | ($956) |
| Management Fees | ($2,000) | ($2,060) | ($2,122) | ($2,186) | ($2,252) | ($2,319) | ($2,389) | ($2,460) | ($2,534) | ($2,610) |
| 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 | ($544) | ($560) | ($577) | ($594) | ($612) | ($630) | ($649) | ($669) | ($689) | ($709) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($9,350) | ($9,630) | ($9,919) | ($10,217) | ($10,523) | ($10,839) | ($11,164) | ($11,499) | ($11,844) | ($12,200) |
| 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 | $15,656 | $16,125 | $16,609 | $17,107 | $17,621 | $18,149 | $18,694 | $19,255 | $19,832 | $20,427 |
| - Mortgage Payments | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) | ($13,875) |
| = Cash Flow | $1,780 | $2,250 | $2,734 | $3,232 | $3,745 | $4,274 | $4,818 | $5,379 | $5,957 | $6,552 |
| + Principal Reduction | $4,591 | $4,766 | $4,948 | $5,137 | $5,333 | $5,536 | $5,747 | $5,967 | $6,194 | $6,431 |
| + Appreciation | $19,974 | $21,172 | $22,443 | $23,789 | $25,217 | $26,730 | $28,334 | $30,034 | $31,836 | $33,746 |
| = Gross Equity Income | $26,345 | $28,188 | $30,124 | $32,158 | $34,295 | $36,540 | $38,899 | $41,379 | $43,986 | $46,728 |
| Capitalization Rate | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% | 3.8% | 3.7% | 3.6% | 3.5% | 3.4% |
| Cash on Cash Return | 1.7% | 2.2% | 2.7% | 3.1% | 3.6% | 4.1% | 4.7% | 5.2% | 5.8% | 6.4% |
| Return on Equity | 24.4% | 21.1% | 18.7% | 16.9% | 15.5% | 14.5% | 13.6% | 12.8% | 12.2% | 11.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $352,874 | $374,046 | $396,489 | $420,279 | $445,495 | $472,225 | $500,559 | $530,592 | $562,428 | $596,173 |
| - Loan Balance | ($245,084) | ($240,318) | ($235,370) | ($230,233) | ($224,901) | ($219,365) | ($213,617) | ($207,651) | ($201,457) | ($195,026) |
| = Equity | $107,790 | $133,728 | $161,119 | $190,045 | $220,595 | $252,860 | $286,941 | $322,941 | $360,971 | $401,147 |
| Loan-to-Value Ratio | 69.5% | 64.2% | 59.4% | 54.8% | 50.5% | 46.5% | 42.7% | 39.1% | 35.8% | 32.7% |
| Potential Cash-Out Refi | $19,571 | $40,217 | $61,997 | $84,976 | $109,221 | $134,804 | $161,801 | $190,293 | $220,364 | $252,104 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $107,790 | $133,728 | $161,119 | $190,045 | $220,595 | $252,860 | $286,941 | $322,941 | $360,971 | $401,147 |
| - Closing Costs | ($24,701) | ($26,183) | ($27,754) | ($29,420) | ($31,185) | ($33,056) | ($35,039) | ($37,141) | ($39,370) | ($41,732) |
| = Proceeds After Sale | $83,089 | $107,545 | $133,365 | $160,626 | $189,410 | $219,805 | $251,902 | $285,800 | $321,601 | $359,415 |
| + Cumulative Cash Flow | $1,780 | $4,030 | $6,764 | $9,996 | $13,741 | $18,015 | $22,833 | $28,213 | $34,169 | $40,721 |
| - Approximate Cash Invested | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) | ($103,074) |
| = Net Profit | ($18,205) | $8,501 | $37,055 | $67,548 | $100,077 | $134,746 | $171,661 | $210,938 | $252,696 | $297,062 |
| Internal Rate of Return | -17.7% | 4.1% | 11.0% | 13.7% | 15.0% | 15.5% | 15.7% | 15.7% | 15.5% | 15.4% |
| Return on Investment | -17.7% | 8.2% | 35.9% | 65.5% | 97.1% | 130.7% | 166.5% | 204.6% | 245.2% | 288.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.