Great Opportunity!
Phoenix, AZ 85023
3bd • 2ba • Built: 1980
| 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 | ($1,155) | ($1,190) | ($1,225) | ($1,262) | ($1,300) | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) |
| Insurance | ($660) | ($680) | ($700) | ($721) | ($743) | ($765) | ($788) | ($812) | ($836) | ($861) |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,015) | ($3,105) | ($3,199) | ($3,295) | ($3,393) | ($3,495) | ($3,600) | ($3,708) | ($3,819) | ($3,934) |
| 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 | $19,065 | $19,637 | $20,226 | $20,833 | $21,458 | $22,102 | $22,765 | $23,448 | $24,151 | $24,876 |
| - Mortgage Payments | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) | ($17,807) |
| = Cash Flow | $1,258 | $1,830 | $2,419 | $3,026 | $3,651 | $4,295 | $4,958 | $5,641 | $6,344 | $7,069 |
| + Principal Reduction | $3,039 | $3,227 | $3,426 | $3,637 | $3,861 | $4,100 | $4,353 | $4,621 | $4,906 | $5,209 |
| + Appreciation | $19,800 | $20,988 | $22,247 | $23,582 | $24,997 | $26,497 | $28,087 | $29,772 | $31,558 | $33,452 |
| = Gross Equity Income | $24,098 | $26,045 | $28,092 | $30,245 | $32,510 | $34,891 | $37,397 | $40,034 | $42,808 | $45,729 |
| Capitalization Rate | 5.5% | 5.3% | 5.1% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% |
| Cash on Cash Return | 1.4% | 2.0% | 2.6% | 3.3% | 4.0% | 4.6% | 5.4% | 6.1% | 6.9% | 7.7% |
| Return on Equity | 22.9% | 20.1% | 18.1% | 16.6% | 15.4% | 14.4% | 13.6% | 13.0% | 12.4% | 11.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $349,800 | $370,788 | $393,035 | $416,617 | $441,614 | $468,111 | $496,198 | $525,970 | $557,528 | $590,980 |
| - Loan Balance | ($244,461) | ($241,234) | ($237,808) | ($234,171) | ($230,309) | ($226,210) | ($221,857) | ($217,236) | ($212,330) | ($207,122) |
| = Equity | $105,339 | $129,554 | $155,227 | $182,447 | $211,305 | $241,902 | $274,341 | $308,734 | $345,198 | $383,858 |
| 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 | $70,359 | $92,475 | $115,924 | $140,785 | $167,144 | $195,090 | $224,721 | $256,137 | $289,445 | $324,760 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $105,339 | $129,554 | $155,227 | $182,447 | $211,305 | $241,902 | $274,341 | $308,734 | $345,198 | $383,858 |
| - Closing Costs | ($24,486) | ($25,955) | ($27,512) | ($29,163) | ($30,913) | ($32,768) | ($34,734) | ($36,818) | ($39,027) | ($41,369) |
| = Proceeds After Sale | $80,853 | $103,599 | $127,715 | $153,283 | $180,392 | $209,134 | $239,607 | $271,916 | $306,171 | $342,489 |
| + Cumulative Cash Flow | $1,258 | $3,089 | $5,508 | $8,534 | $12,185 | $16,480 | $21,438 | $27,079 | $33,423 | $40,492 |
| - Approximate Cash Invested | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) | ($92,400) |
| = Net Profit | ($10,288) | $14,288 | $40,823 | $69,417 | $100,177 | $133,214 | $168,645 | $206,595 | $247,194 | $290,581 |
| Internal Rate of Return | -11.1% | 7.5% | 13.1% | 15.3% | 16.2% | 16.6% | 16.6% | 16.5% | 16.4% | 16.2% |
| Return on Investment | -11.1% | 15.5% | 44.2% | 75.1% | 108.4% | 144.2% | 182.5% | 223.6% | 267.5% | 314.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.