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 | $15,480 | $15,944 | $16,423 | $16,915 | $17,423 | $17,946 | $18,484 | $19,038 | $19,610 | $20,198 |
| Vacancy Losses | ($1,238) | ($1,276) | ($1,314) | ($1,353) | ($1,394) | ($1,436) | ($1,479) | ($1,523) | ($1,569) | ($1,616) |
| Operating Income | $14,242 | $14,669 | $15,109 | $15,562 | $16,029 | $16,510 | $17,005 | $17,515 | $18,041 | $18,582 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,584) | ($1,632) | ($1,680) | ($1,731) | ($1,783) | ($1,836) | ($1,891) | ($1,948) | ($2,007) | ($2,067) |
| Insurance | ($880) | ($906) | ($934) | ($962) | ($990) | ($1,020) | ($1,051) | ($1,082) | ($1,115) | ($1,148) |
| Management Fees | ($1,139) | ($1,174) | ($1,209) | ($1,245) | ($1,282) | ($1,321) | ($1,360) | ($1,401) | ($1,443) | ($1,487) |
| 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 | ($1,238) | ($1,276) | ($1,314) | ($1,353) | ($1,394) | ($1,436) | ($1,479) | ($1,523) | ($1,569) | ($1,616) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,842) | ($4,987) | ($5,137) | ($5,291) | ($5,449) | ($5,613) | ($5,781) | ($5,955) | ($6,133) | ($6,317) |
| 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 | $9,400 | $9,682 | $9,972 | $10,271 | $10,580 | $10,897 | $11,224 | $11,561 | $11,907 | $12,265 |
| - Mortgage Payments | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) | ($9,497) |
| = Cash Flow | ($97) | $185 | $475 | $775 | $1,083 | $1,400 | $1,727 | $2,064 | $2,411 | $2,768 |
| + Principal Reduction | $1,621 | $1,721 | $1,827 | $1,940 | $2,059 | $2,187 | $2,321 | $2,465 | $2,617 | $2,778 |
| + Appreciation | $10,560 | $11,194 | $11,865 | $12,577 | $13,332 | $14,132 | $14,980 | $15,878 | $16,831 | $17,841 |
| = Gross Equity Income | $12,084 | $13,100 | $14,168 | $15,292 | $16,474 | $17,718 | $19,028 | $20,407 | $21,858 | $23,387 |
| Capitalization Rate | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% |
| Cash on Cash Return | -0.2% | 0.3% | 0.8% | 1.3% | 1.8% | 2.3% | 2.8% | 3.4% | 3.9% | 4.5% |
| Return on Equity | 21.5% | 19.0% | 17.1% | 15.7% | 14.6% | 13.7% | 13.0% | 12.4% | 11.9% | 11.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $186,560 | $197,754 | $209,619 | $222,196 | $235,528 | $249,659 | $264,639 | $280,517 | $297,348 | $315,189 |
| - Loan Balance | ($130,379) | ($128,658) | ($126,831) | ($124,891) | ($122,832) | ($120,645) | ($118,324) | ($115,859) | ($113,243) | ($110,465) |
| = Equity | $56,181 | $69,096 | $82,788 | $97,305 | $112,696 | $129,014 | $146,315 | $164,658 | $184,106 | $204,725 |
| 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 | $37,525 | $49,320 | $61,826 | $75,085 | $89,143 | $104,048 | $119,851 | $136,606 | $154,371 | $173,206 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $56,181 | $69,096 | $82,788 | $97,305 | $112,696 | $129,014 | $146,315 | $164,658 | $184,106 | $204,725 |
| - Closing Costs | ($13,059) | ($13,843) | ($14,673) | ($15,554) | ($16,487) | ($17,476) | ($18,525) | ($19,636) | ($20,814) | ($22,063) |
| = Proceeds After Sale | $43,122 | $55,253 | $68,115 | $81,751 | $96,209 | $111,538 | $127,791 | $145,022 | $163,291 | $182,661 |
| + Cumulative Cash Flow | ($97) | $88 | $563 | $1,338 | $2,421 | $3,821 | $5,548 | $7,611 | $10,022 | $12,790 |
| - Approximate Cash Invested | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) | ($61,040) |
| = Net Profit | ($18,015) | ($5,699) | $7,638 | $22,049 | $37,590 | $54,319 | $72,298 | $91,593 | $112,273 | $134,411 |
| Internal Rate of Return | -29.5% | -4.8% | 4.0% | 8.0% | 10.1% | 11.3% | 11.9% | 12.3% | 12.5% | 12.6% |
| Return on Investment | -29.5% | -9.3% | 12.5% | 36.1% | 61.6% | 89.0% | 118.4% | 150.1% | 183.9% | 220.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.