| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $24,000 | $24,720 | $25,462 | $26,225 | $27,012 | $27,823 | $28,657 | $29,517 | $30,402 | $31,315 |
| Vacancy Losses | ($1,920) | ($1,978) | ($2,037) | ($2,098) | ($2,161) | ($2,226) | ($2,293) | ($2,361) | ($2,432) | ($2,505) |
| Operating Income | $22,080 | $22,742 | $23,425 | $24,127 | $24,851 | $25,597 | $26,365 | $27,156 | $27,970 | $28,809 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,600) | ($1,648) | ($1,697) | ($1,748) | ($1,801) | ($1,855) | ($1,910) | ($1,968) | ($2,027) | ($2,088) |
| Insurance | ($800) | ($824) | ($849) | ($874) | ($900) | ($927) | ($955) | ($984) | ($1,013) | ($1,044) |
| 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 | ($1,788) | ($1,842) | ($1,897) | ($1,954) | ($2,012) | ($2,073) | ($2,135) | ($2,199) | ($2,265) | ($2,333) |
| Maintenance | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,668) | ($4,808) | ($4,952) | ($5,101) | ($5,254) | ($5,411) | ($5,574) | ($5,741) | ($5,913) | ($6,091) |
| 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 | $17,412 | $17,934 | $18,472 | $19,027 | $19,597 | $20,185 | $20,791 | $21,415 | $22,057 | $22,719 |
| - Mortgage Payments | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) | ($17,024) |
| = Cash Flow | $388 | $910 | $1,448 | $2,002 | $2,573 | $3,161 | $3,767 | $4,390 | $5,033 | $5,695 |
| + Principal Reduction | $4,517 | $4,724 | $4,941 | $5,168 | $5,406 | $5,654 | $5,914 | $6,186 | $6,470 | $6,767 |
| + Appreciation | $23,999 | $25,439 | $26,966 | $28,584 | $30,299 | $32,117 | $34,044 | $36,086 | $38,251 | $40,546 |
| = Gross Equity Income | $28,904 | $31,074 | $33,355 | $35,755 | $38,278 | $40,932 | $43,724 | $46,662 | $49,754 | $53,008 |
| Capitalization Rate | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% | 3.2% |
| Cash on Cash Return | 0.3% | 0.7% | 1.1% | 1.5% | 2.0% | 2.4% | 2.9% | 3.4% | 3.9% | 4.4% |
| Return on Equity | 19.5% | 17.4% | 15.8% | 14.6% | 13.7% | 12.9% | 12.2% | 11.7% | 11.2% | 10.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $423,989 | $449,429 | $476,394 | $504,978 | $535,277 | $567,393 | $601,437 | $637,523 | $675,775 | $716,321 |
| - Loan Balance | ($275,476) | ($270,752) | ($265,810) | ($260,642) | ($255,236) | ($249,582) | ($243,668) | ($237,482) | ($231,012) | ($224,245) |
| = Equity | $148,513 | $178,677 | $210,584 | $244,336 | $280,041 | $317,812 | $357,769 | $400,041 | $444,762 | $492,076 |
| Loan-to-Value Ratio | 65.0% | 60.2% | 55.8% | 51.6% | 47.7% | 44.0% | 40.5% | 37.3% | 34.2% | 31.3% |
| Potential Cash-Out Refi | $106,114 | $133,734 | $162,945 | $193,838 | $226,513 | $261,072 | $297,626 | $336,289 | $377,185 | $420,444 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $148,513 | $178,677 | $210,584 | $244,336 | $280,041 | $317,812 | $357,769 | $400,041 | $444,762 | $492,076 |
| - Closing Costs | ($29,679) | ($31,460) | ($33,348) | ($35,348) | ($37,469) | ($39,718) | ($42,101) | ($44,627) | ($47,304) | ($50,142) |
| = Proceeds After Sale | $118,834 | $147,217 | $177,237 | $208,988 | $242,571 | $278,094 | $315,669 | $355,414 | $397,458 | $441,933 |
| + Cumulative Cash Flow | $388 | $1,298 | $2,746 | $4,749 | $7,322 | $10,483 | $14,250 | $18,641 | $23,674 | $29,368 |
| - Approximate Cash Invested | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) | ($129,597) |
| = Net Profit | ($10,375) | $18,918 | $50,386 | $84,140 | $120,297 | $158,981 | $200,322 | $244,458 | $291,535 | $341,705 |
| Internal Rate of Return | -8.0% | 7.1% | 11.6% | 13.4% | 14.2% | 14.5% | 14.5% | 14.4% | 14.3% | 14.2% |
| Return on Investment | -8.0% | 14.6% | 38.9% | 64.9% | 92.8% | 122.7% | 154.6% | 188.6% | 225.0% | 263.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.