| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $18,000 | $18,540 | $19,096 | $19,669 | $20,259 | $20,867 | $21,493 | $22,138 | $22,802 | $23,486 |
| Vacancy Losses | ($1,440) | ($1,483) | ($1,528) | ($1,574) | ($1,621) | ($1,669) | ($1,719) | ($1,771) | ($1,824) | ($1,879) |
| Operating Income | $16,560 | $17,057 | $17,569 | $18,096 | $18,638 | $19,198 | $19,774 | $20,367 | $20,978 | $21,607 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,399) | ($2,471) | ($2,545) | ($2,621) | ($2,700) | ($2,781) | ($2,864) | ($2,950) | ($3,039) | ($3,130) |
| Insurance | ($860) | ($885) | ($912) | ($939) | ($967) | ($996) | ($1,026) | ($1,057) | ($1,089) | ($1,122) |
| 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 | ($360) | ($371) | ($382) | ($393) | ($405) | ($417) | ($430) | ($443) | ($456) | ($470) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,618) | ($3,727) | ($3,839) | ($3,954) | ($4,073) | ($4,195) | ($4,321) | ($4,450) | ($4,584) | ($4,721) |
| 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 | $12,942 | $13,330 | $13,730 | $14,142 | $14,566 | $15,003 | $15,453 | $15,917 | $16,394 | $16,886 |
| - Mortgage Payments | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) | ($10,642) |
| = Cash Flow | $2,299 | $2,688 | $3,087 | $3,499 | $3,924 | $4,361 | $4,811 | $5,274 | $5,752 | $6,244 |
| + Principal Reduction | $1,884 | $1,998 | $2,119 | $2,247 | $2,382 | $2,526 | $2,679 | $2,840 | $3,012 | $3,193 |
| + Appreciation | $11,994 | $12,714 | $13,476 | $14,285 | $15,142 | $16,051 | $17,014 | $18,035 | $19,117 | $20,264 |
| = Gross Equity Income | $16,178 | $17,399 | $18,683 | $20,031 | $21,448 | $22,937 | $24,503 | $26,149 | $27,880 | $29,701 |
| Capitalization Rate | 6.1% | 5.9% | 5.8% | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.9% | 4.7% |
| Cash on Cash Return | 3.8% | 4.5% | 5.1% | 5.8% | 6.5% | 7.3% | 8.0% | 8.8% | 9.6% | 10.4% |
| Return on Equity | 25.3% | 22.1% | 19.8% | 18.1% | 16.7% | 15.6% | 14.7% | 14.0% | 13.3% | 12.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $211,894 | $224,608 | $238,084 | $252,369 | $267,511 | $283,562 | $300,576 | $318,610 | $337,727 | $357,990 |
| - Loan Balance | ($148,041) | ($146,042) | ($143,924) | ($141,677) | ($139,295) | ($136,769) | ($134,090) | ($131,250) | ($128,238) | ($125,045) |
| = Equity | $63,853 | $78,565 | $94,160 | $110,692 | $128,217 | $146,793 | $166,486 | $187,360 | $209,489 | $232,946 |
| Loan-to-Value Ratio | 69.9% | 65.0% | 60.5% | 56.1% | 52.1% | 48.2% | 44.6% | 41.2% | 38.0% | 34.9% |
| Potential Cash-Out Refi | $10,880 | $22,413 | $34,639 | $47,600 | $61,339 | $75,903 | $91,342 | $107,708 | $125,057 | $143,448 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $63,853 | $78,565 | $94,160 | $110,692 | $128,217 | $146,793 | $166,486 | $187,360 | $209,489 | $232,946 |
| - Closing Costs | ($14,833) | ($15,723) | ($16,666) | ($17,666) | ($18,726) | ($19,849) | ($21,040) | ($22,303) | ($23,641) | ($25,059) |
| = Proceeds After Sale | $49,021 | $62,843 | $77,495 | $93,026 | $109,491 | $126,944 | $145,445 | $165,058 | $185,848 | $207,886 |
| + Cumulative Cash Flow | $2,299 | $4,987 | $8,074 | $11,574 | $15,497 | $19,858 | $24,669 | $29,943 | $35,695 | $41,938 |
| - Approximate Cash Invested | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) | ($59,970) |
| = Net Profit | ($8,650) | $7,860 | $25,599 | $44,630 | $65,018 | $86,832 | $110,144 | $135,030 | $161,572 | $189,854 |
| Internal Rate of Return | -14.4% | 6.5% | 13.0% | 15.6% | 16.8% | 17.3% | 17.4% | 17.4% | 17.2% | 17.1% |
| Return on Investment | -14.4% | 13.1% | 42.7% | 74.4% | 108.4% | 144.8% | 183.7% | 225.2% | 269.4% | 316.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.