| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $87,000 | $89,610 | $92,298 | $95,067 | $97,919 | $100,857 | $103,883 | $106,999 | $110,209 | $113,515 |
| Vacancy Losses | ($6,960) | ($7,169) | ($7,384) | ($7,605) | ($7,834) | ($8,069) | ($8,311) | ($8,560) | ($8,817) | ($9,081) |
| Operating Income | $80,040 | $82,441 | $84,914 | $87,462 | $90,086 | $92,788 | $95,572 | $98,439 | $101,392 | $104,434 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,853) | ($1,909) | ($1,966) | ($2,025) | ($2,086) | ($2,148) | ($2,213) | ($2,279) | ($2,347) | ($2,418) |
| Insurance | ($1,853) | ($1,909) | ($1,966) | ($2,025) | ($2,086) | ($2,148) | ($2,213) | ($2,279) | ($2,347) | ($2,418) |
| Management Fees | ($12,806) | ($13,191) | ($13,586) | ($13,994) | ($14,414) | ($14,846) | ($15,292) | ($15,750) | ($16,223) | ($16,709) |
| 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 | ($2,610) | ($2,688) | ($2,769) | ($2,852) | ($2,938) | ($3,026) | ($3,116) | ($3,210) | ($3,306) | ($3,405) |
| Other | ($9,600) | ($9,888) | ($10,185) | ($10,490) | ($10,805) | ($11,129) | ($11,463) | ($11,807) | ($12,161) | ($12,526) |
| Operating Expenses | ($28,722) | ($29,584) | ($30,472) | ($31,386) | ($32,327) | ($33,297) | ($34,296) | ($35,325) | ($36,385) | ($37,476) |
| 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 | $51,318 | $52,857 | $54,443 | $56,076 | $57,758 | $59,491 | $61,276 | $63,114 | $65,008 | $66,958 |
| - Mortgage Payments | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) | ($36,984) |
| = Cash Flow | $14,333 | $15,873 | $17,459 | $19,092 | $20,774 | $22,507 | $24,292 | $26,130 | $28,023 | $29,974 |
| + Principal Reduction | $4,706 | $5,046 | $5,411 | $5,802 | $6,221 | $6,671 | $7,153 | $7,670 | $8,225 | $8,819 |
| + Appreciation | $32,700 | $34,662 | $36,742 | $38,946 | $41,283 | $43,760 | $46,386 | $49,169 | $52,119 | $55,246 |
| = Gross Equity Income | $51,739 | $55,581 | $59,611 | $63,840 | $68,278 | $72,938 | $77,830 | $82,969 | $88,367 | $94,039 |
| Capitalization Rate | 8.9% | 8.6% | 8.4% | 8.2% | 7.9% | 7.7% | 7.5% | 7.3% | 7.1% | 6.9% |
| Cash on Cash Return | 12.9% | 14.3% | 15.7% | 17.2% | 18.7% | 20.2% | 21.8% | 23.5% | 25.2% | 27.0% |
| Return on Equity | 43.4% | 35.0% | 29.7% | 26.0% | 23.3% | 21.2% | 19.6% | 18.3% | 17.2% | 16.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $577,700 | $612,362 | $649,104 | $688,050 | $729,333 | $773,093 | $819,478 | $868,647 | $920,766 | $976,012 |
| - Loan Balance | ($458,544) | ($453,498) | ($448,088) | ($442,286) | ($436,065) | ($429,394) | ($422,241) | ($414,571) | ($406,346) | ($397,527) |
| = Equity | $119,156 | $158,864 | $201,016 | $245,764 | $293,268 | $343,699 | $397,238 | $454,077 | $514,420 | $578,485 |
| Loan-to-Value Ratio | 79.4% | 74.1% | 69.0% | 64.3% | 59.8% | 55.5% | 51.5% | 47.7% | 44.1% | 40.7% |
| Potential Cash-Out Refi | $61,386 | $97,627 | $136,106 | $176,959 | $220,335 | $266,390 | $315,290 | $367,212 | $422,344 | $480,884 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $119,156 | $158,864 | $201,016 | $245,764 | $293,268 | $343,699 | $397,238 | $454,077 | $514,420 | $578,485 |
| - Closing Costs | ($40,439) | ($42,865) | ($45,437) | ($48,163) | ($51,053) | ($54,117) | ($57,363) | ($60,805) | ($64,454) | ($68,321) |
| = Proceeds After Sale | $78,717 | $115,998 | $155,579 | $197,600 | $242,215 | $289,582 | $339,874 | $393,271 | $449,967 | $510,165 |
| + Cumulative Cash Flow | $14,333 | $30,206 | $47,665 | $66,757 | $87,532 | $110,039 | $134,330 | $160,460 | $188,484 | $218,458 |
| - Approximate Cash Invested | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) | ($111,180) |
| = Net Profit | ($18,130) | $35,025 | $92,064 | $153,178 | $218,566 | $288,441 | $363,025 | $442,552 | $527,270 | $617,442 |
| Internal Rate of Return | -16.3% | 15.5% | 24.6% | 27.6% | 28.5% | 28.5% | 28.2% | 27.8% | 27.3% | 26.8% |
| Return on Investment | -16.3% | 31.5% | 82.8% | 137.8% | 196.6% | 259.4% | 326.5% | 398.0% | 474.2% | 555.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.