| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $89,400 | $92,082 | $94,844 | $97,690 | $100,620 | $103,639 | $106,748 | $109,951 | $113,249 | $116,647 |
| Vacancy Losses | ($7,152) | ($7,367) | ($7,588) | ($7,815) | ($8,050) | ($8,291) | ($8,540) | ($8,796) | ($9,060) | ($9,332) |
| Operating Income | $82,248 | $84,715 | $87,257 | $89,875 | $92,571 | $95,348 | $98,208 | $101,155 | $104,189 | $107,315 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,989) | ($2,049) | ($2,110) | ($2,173) | ($2,239) | ($2,306) | ($2,375) | ($2,446) | ($2,520) | ($2,595) |
| Insurance | ($1,989) | ($2,049) | ($2,110) | ($2,173) | ($2,239) | ($2,306) | ($2,375) | ($2,446) | ($2,520) | ($2,595) |
| Management Fees | ($13,160) | ($13,554) | ($13,961) | ($14,380) | ($14,811) | ($15,256) | ($15,713) | ($16,185) | ($16,670) | ($17,170) |
| 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 | ($2,682) | ($2,762) | ($2,845) | ($2,931) | ($3,019) | ($3,109) | ($3,202) | ($3,299) | ($3,397) | ($3,499) |
| Other | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | ($11,129) | ($11,463) | ($11,807) | ($12,161) | ($12,526) |
| Operating Expenses | ($29,420) | ($30,302) | ($31,211) | ($32,148) | ($33,112) | ($34,105) | ($35,129) | ($36,182) | ($37,268) | ($38,386) |
| 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 | $52,828 | $54,413 | $56,046 | $57,727 | $59,459 | $61,243 | $63,080 | $64,972 | $66,921 | $68,929 |
| - Mortgage Payments | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) | ($32,418) |
| = Cash Flow | $20,411 | $21,996 | $23,628 | $25,309 | $27,041 | $28,825 | $30,662 | $32,555 | $34,504 | $36,511 |
| + Principal Reduction | $5,141 | $5,472 | $5,824 | $6,199 | $6,597 | $7,022 | $7,473 | $7,954 | $8,466 | $9,010 |
| + Appreciation | $35,100 | $37,206 | $39,438 | $41,805 | $44,313 | $46,972 | $49,790 | $52,777 | $55,944 | $59,301 |
| = Gross Equity Income | $60,652 | $64,674 | $68,890 | $73,313 | $77,951 | $82,818 | $87,925 | $93,286 | $98,913 | $104,822 |
| Capitalization Rate | 8.5% | 8.3% | 8.0% | 7.8% | 7.6% | 7.4% | 7.2% | 7.0% | 6.8% | 6.6% |
| Cash on Cash Return | 12.2% | 13.2% | 14.2% | 15.2% | 16.2% | 17.3% | 18.4% | 19.5% | 20.7% | 21.9% |
| Return on Equity | 32.5% | 28.2% | 25.1% | 22.7% | 20.9% | 19.4% | 18.1% | 17.1% | 16.2% | 15.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $620,100 | $657,306 | $696,744 | $738,549 | $782,862 | $829,834 | $879,624 | $932,401 | $988,345 | $1,047,646 |
| - Loan Balance | ($433,609) | ($428,137) | ($422,313) | ($416,114) | ($409,517) | ($402,496) | ($395,022) | ($387,068) | ($378,603) | ($369,593) |
| = Equity | $186,491 | $229,169 | $274,431 | $322,435 | $373,345 | $427,338 | $484,601 | $545,333 | $609,742 | $678,053 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.6% | 56.3% | 52.3% | 48.5% | 44.9% | 41.5% | 38.3% | 35.3% |
| Potential Cash-Out Refi | $124,481 | $163,439 | $204,757 | $248,580 | $295,059 | $344,355 | $396,639 | $452,093 | $510,908 | $573,288 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $186,491 | $229,169 | $274,431 | $322,435 | $373,345 | $427,338 | $484,601 | $545,333 | $609,742 | $678,053 |
| - Closing Costs | ($43,407) | ($46,011) | ($48,772) | ($51,698) | ($54,800) | ($58,088) | ($61,574) | ($65,268) | ($69,184) | ($73,335) |
| = Proceeds After Sale | $143,084 | $183,158 | $225,659 | $270,736 | $318,545 | $369,250 | $423,028 | $480,065 | $540,558 | $604,718 |
| + Cumulative Cash Flow | $20,411 | $42,406 | $66,034 | $91,344 | $118,385 | $147,210 | $177,872 | $210,427 | $244,931 | $281,442 |
| - Approximate Cash Invested | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) | ($166,725) |
| = Net Profit | ($3,230) | $58,839 | $124,969 | $195,355 | $270,205 | $349,735 | $434,175 | $523,767 | $618,764 | $719,435 |
| Internal Rate of Return | -1.9% | 17.2% | 22.6% | 24.4% | 24.9% | 24.9% | 24.7% | 24.4% | 24.0% | 23.6% |
| Return on Investment | -1.9% | 35.3% | 75.0% | 117.2% | 162.1% | 209.8% | 260.4% | 314.2% | 371.1% | 431.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.