Pre-Leased Property
Memphis, TN 38128
3bd • 2ba • Built: 1964
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $13,500 | $13,905 | $14,322 | $14,752 | $15,194 | $15,650 | $16,120 | $16,603 | $17,101 | $17,614 |
| Vacancy Losses | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Operating Income | $12,420 | $12,793 | $13,176 | $13,572 | $13,979 | $14,398 | $14,830 | $15,275 | $15,733 | $16,205 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,410) | ($1,453) | ($1,496) | ($1,541) | ($1,587) | ($1,635) | ($1,684) | ($1,734) | ($1,787) | ($1,840) |
| Insurance | ($784) | ($807) | ($831) | ($856) | ($882) | ($908) | ($936) | ($964) | ($993) | ($1,022) |
| Management Fees | ($994) | ($1,023) | ($1,054) | ($1,086) | ($1,118) | ($1,152) | ($1,186) | ($1,222) | ($1,259) | ($1,296) |
| 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 | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,267) | ($4,395) | ($4,527) | ($4,663) | ($4,803) | ($4,947) | ($5,095) | ($5,248) | ($5,406) | ($5,568) |
| 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 | $8,153 | $8,397 | $8,649 | $8,909 | $9,176 | $9,451 | $9,735 | $10,027 | $10,327 | $10,637 |
| - Mortgage Payments | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) | ($8,455) |
| = Cash Flow | ($303) | ($58) | $194 | $453 | $720 | $996 | $1,279 | $1,571 | $1,872 | $2,182 |
| + Principal Reduction | $1,443 | $1,532 | $1,627 | $1,727 | $1,834 | $1,947 | $2,067 | $2,194 | $2,330 | $2,473 |
| + Appreciation | $9,402 | $9,966 | $10,564 | $11,198 | $11,870 | $12,582 | $13,337 | $14,137 | $14,985 | $15,884 |
| = Gross Equity Income | $10,542 | $11,440 | $12,384 | $13,378 | $14,424 | $15,524 | $16,683 | $17,903 | $19,187 | $20,540 |
| Capitalization Rate | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.3% | 4.1% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | -0.5% | -0.1% | 0.3% | 0.8% | 1.3% | 1.8% | 2.3% | 2.8% | 3.4% | 3.9% |
| Return on Equity | 21.1% | 18.6% | 16.8% | 15.4% | 14.4% | 13.5% | 12.8% | 12.2% | 11.7% | 11.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $166,102 | $176,068 | $186,632 | $197,830 | $209,700 | $222,282 | $235,619 | $249,756 | $264,741 | $280,626 |
| - Loan Balance | ($116,082) | ($114,550) | ($112,923) | ($111,196) | ($109,362) | ($107,416) | ($105,349) | ($103,155) | ($100,825) | ($98,352) |
| = Equity | $50,020 | $61,519 | $73,709 | $86,634 | $100,338 | $114,866 | $130,270 | $146,601 | $163,916 | $182,274 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.2% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $33,410 | $43,912 | $55,046 | $66,851 | $79,368 | $92,638 | $106,708 | $121,626 | $137,442 | $154,211 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $50,020 | $61,519 | $73,709 | $86,634 | $100,338 | $114,866 | $130,270 | $146,601 | $163,916 | $182,274 |
| - Closing Costs | ($11,627) | ($12,325) | ($13,064) | ($13,848) | ($14,679) | ($15,560) | ($16,493) | ($17,483) | ($18,532) | ($19,644) |
| = Proceeds After Sale | $38,393 | $49,194 | $60,645 | $72,786 | $85,659 | $99,307 | $113,777 | $129,118 | $145,384 | $162,630 |
| + Cumulative Cash Flow | ($303) | ($361) | ($167) | $286 | $1,006 | $2,002 | $3,281 | $4,852 | $6,724 | $8,906 |
| - Approximate Cash Invested | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) | ($55,443) |
| = Net Profit | ($17,353) | ($6,610) | $5,035 | $17,629 | $31,222 | $45,865 | $61,615 | $78,528 | $96,665 | $116,093 |
| Internal Rate of Return | -31.3% | -6.1% | 2.9% | 7.1% | 9.3% | 10.6% | 11.3% | 11.7% | 12.0% | 12.1% |
| Return on Investment | -31.3% | -11.9% | 9.1% | 31.8% | 56.3% | 82.7% | 111.1% | 141.6% | 174.4% | 209.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.