| 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 | ($1,887) | ($1,944) | ($2,002) | ($2,062) | ($2,124) | ($2,188) | ($2,253) | ($2,321) | ($2,390) | ($2,462) |
| Insurance | ($1,887) | ($1,944) | ($2,002) | ($2,062) | ($2,124) | ($2,188) | ($2,253) | ($2,321) | ($2,390) | ($2,462) |
| 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 | ($29,216) | ($30,092) | ($30,995) | ($31,925) | ($32,883) | ($33,869) | ($34,885) | ($35,932) | ($37,010) | ($38,120) |
| 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 | $53,032 | $54,623 | $56,262 | $57,950 | $59,688 | $61,479 | $63,323 | $65,223 | $67,180 | $69,195 |
| - Mortgage Payments | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) | ($30,755) |
| = Cash Flow | $22,277 | $23,868 | $25,507 | $27,195 | $28,933 | $30,724 | $32,568 | $34,468 | $36,425 | $38,440 |
| + Principal Reduction | $4,878 | $5,191 | $5,525 | $5,881 | $6,259 | $6,661 | $7,090 | $7,546 | $8,031 | $8,548 |
| + Appreciation | $33,300 | $35,298 | $37,416 | $39,661 | $42,040 | $44,563 | $47,237 | $50,071 | $53,075 | $56,260 |
| = Gross Equity Income | $60,455 | $64,358 | $68,448 | $72,736 | $77,233 | $81,948 | $86,895 | $92,085 | $97,531 | $103,248 |
| Capitalization Rate | 9.0% | 8.8% | 8.5% | 8.3% | 8.0% | 7.8% | 7.6% | 7.4% | 7.2% | 7.0% |
| Cash on Cash Return | 14.1% | 15.1% | 16.1% | 17.2% | 18.3% | 19.4% | 20.6% | 21.8% | 23.0% | 24.3% |
| Return on Equity | 34.2% | 29.6% | 26.3% | 23.8% | 21.8% | 20.2% | 18.9% | 17.8% | 16.9% | 16.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $588,300 | $623,598 | $661,014 | $700,675 | $742,715 | $787,278 | $834,515 | $884,586 | $937,661 | $993,920 |
| - Loan Balance | ($411,372) | ($406,181) | ($400,656) | ($394,775) | ($388,516) | ($381,855) | ($374,765) | ($367,219) | ($359,188) | ($350,640) |
| = Equity | $176,928 | $217,417 | $260,358 | $305,899 | $354,199 | $405,423 | $459,750 | $517,367 | $578,473 | $643,281 |
| 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 | $118,098 | $155,057 | $194,257 | $235,832 | $279,927 | $326,695 | $376,298 | $428,908 | $484,707 | $543,888 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $176,928 | $217,417 | $260,358 | $305,899 | $354,199 | $405,423 | $459,750 | $517,367 | $578,473 | $643,281 |
| - Closing Costs | ($41,181) | ($43,652) | ($46,271) | ($49,047) | ($51,990) | ($55,109) | ($58,416) | ($61,921) | ($65,636) | ($69,574) |
| = Proceeds After Sale | $135,747 | $173,765 | $214,087 | $256,852 | $302,209 | $350,314 | $401,334 | $455,446 | $512,837 | $573,706 |
| + Cumulative Cash Flow | $22,277 | $46,146 | $71,652 | $98,847 | $127,781 | $158,505 | $191,073 | $225,541 | $261,966 | $300,406 |
| - Approximate Cash Invested | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) | ($158,175) |
| = Net Profit | ($151) | $61,736 | $127,564 | $197,524 | $271,814 | $350,643 | $434,232 | $522,811 | $616,627 | $715,937 |
| Internal Rate of Return | -0.1% | 19.0% | 24.3% | 26.0% | 26.5% | 26.4% | 26.1% | 25.8% | 25.4% | 25.0% |
| Return on Investment | -0.1% | 39.0% | 80.6% | 124.9% | 171.8% | 221.7% | 274.5% | 330.5% | 389.8% | 452.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.