Desirable Location
Gilbert, AZ 85234
4bd • 3ba • Built: 2005
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $31,200 | $32,136 | $33,100 | $34,093 | $35,116 | $36,169 | $37,254 | $38,372 | $39,523 | $40,709 |
| Vacancy Losses | ($2,496) | ($2,571) | ($2,648) | ($2,727) | ($2,809) | ($2,894) | ($2,980) | ($3,070) | ($3,162) | ($3,257) |
| Operating Income | $28,704 | $29,565 | $30,452 | $31,366 | $32,307 | $33,276 | $34,274 | $35,302 | $36,361 | $37,452 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,596) | ($1,644) | ($1,693) | ($1,744) | ($1,796) | ($1,850) | ($1,906) | ($1,963) | ($2,022) | ($2,082) |
| Insurance | ($1,197) | ($1,233) | ($1,270) | ($1,308) | ($1,347) | ($1,388) | ($1,429) | ($1,472) | ($1,516) | ($1,562) |
| 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 | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| Maintenance | ($624) | ($643) | ($662) | ($682) | ($702) | ($723) | ($745) | ($767) | ($790) | ($814) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,617) | ($4,756) | ($4,898) | ($5,045) | ($5,196) | ($5,352) | ($5,513) | ($5,678) | ($5,849) | ($6,024) |
| 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 | $24,087 | $24,810 | $25,554 | $26,321 | $27,110 | $27,923 | $28,761 | $29,624 | $30,513 | $31,428 |
| - Mortgage Payments | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) | ($21,530) |
| = Cash Flow | $2,557 | $3,280 | $4,024 | $4,791 | $5,580 | $6,394 | $7,231 | $8,094 | $8,983 | $9,898 |
| + Principal Reduction | $3,675 | $3,901 | $4,142 | $4,398 | $4,669 | $4,957 | $5,262 | $5,587 | $5,932 | $6,297 |
| + Appreciation | $23,940 | $25,376 | $26,899 | $28,513 | $30,224 | $32,037 | $33,959 | $35,997 | $38,157 | $40,446 |
| = Gross Equity Income | $30,172 | $32,558 | $35,065 | $37,701 | $40,473 | $43,387 | $46,453 | $49,678 | $53,071 | $56,642 |
| Capitalization Rate | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% |
| Cash on Cash Return | 2.3% | 2.9% | 3.6% | 4.3% | 5.0% | 5.7% | 6.5% | 7.2% | 8.0% | 8.9% |
| Return on Equity | 23.7% | 20.8% | 18.7% | 17.1% | 15.8% | 14.8% | 14.0% | 13.3% | 12.7% | 12.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $422,940 | $448,316 | $475,215 | $503,728 | $533,952 | $565,989 | $599,948 | $635,945 | $674,102 | $714,548 |
| - Loan Balance | ($295,575) | ($291,674) | ($287,532) | ($283,134) | ($278,466) | ($273,509) | ($268,246) | ($262,659) | ($256,728) | ($250,430) |
| = Equity | $127,365 | $156,643 | $187,684 | $220,594 | $255,486 | $292,480 | $331,702 | $373,286 | $417,374 | $464,118 |
| 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 | $85,071 | $111,811 | $140,162 | $170,221 | $202,091 | $235,881 | $271,707 | $309,691 | $349,964 | $392,663 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $127,365 | $156,643 | $187,684 | $220,594 | $255,486 | $292,480 | $331,702 | $373,286 | $417,374 | $464,118 |
| - Closing Costs | ($29,606) | ($31,382) | ($33,265) | ($35,261) | ($37,377) | ($39,619) | ($41,996) | ($44,516) | ($47,187) | ($50,018) |
| = Proceeds After Sale | $97,759 | $125,260 | $154,419 | $185,333 | $218,110 | $252,861 | $289,706 | $328,770 | $370,187 | $414,099 |
| + Cumulative Cash Flow | $2,557 | $5,837 | $9,861 | $14,652 | $20,232 | $26,626 | $33,857 | $41,951 | $50,934 | $60,832 |
| - Approximate Cash Invested | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) | ($111,720) |
| = Net Profit | ($11,404) | $19,377 | $52,560 | $88,265 | $126,622 | $167,767 | $211,843 | $259,001 | $309,401 | $363,212 |
| Internal Rate of Return | -10.2% | 8.4% | 14.0% | 16.1% | 17.0% | 17.3% | 17.3% | 17.2% | 17.0% | 16.8% |
| Return on Investment | -10.2% | 17.3% | 47.0% | 79.0% | 113.3% | 150.2% | 189.6% | 231.8% | 276.9% | 325.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.