| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $34,800 | $35,844 | $36,919 | $38,027 | $39,168 | $40,343 | $41,553 | $42,800 | $44,084 | $45,406 |
| Vacancy Losses | ($2,784) | ($2,868) | ($2,954) | ($3,042) | ($3,133) | ($3,227) | ($3,324) | ($3,424) | ($3,527) | ($3,632) |
| Operating Income | $32,016 | $32,976 | $33,966 | $34,985 | $36,034 | $37,115 | $38,229 | $39,376 | $40,557 | $41,774 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,610) | ($2,688) | ($2,769) | ($2,852) | ($2,937) | ($3,025) | ($3,116) | ($3,210) | ($3,306) | ($3,405) |
| Insurance | ($1,279) | ($1,318) | ($1,357) | ($1,398) | ($1,440) | ($1,483) | ($1,527) | ($1,573) | ($1,620) | ($1,669) |
| Management Fees | ($576) | ($593) | ($611) | ($629) | ($648) | ($668) | ($688) | ($708) | ($730) | ($752) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,332) | ($1,372) | ($1,413) | ($1,456) | ($1,499) | ($1,544) | ($1,590) | ($1,638) | ($1,687) | ($1,738) |
| Maintenance | ($696) | ($717) | ($738) | ($761) | ($783) | ($807) | ($831) | ($856) | ($882) | ($908) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,493) | ($6,688) | ($6,888) | ($7,095) | ($7,308) | ($7,527) | ($7,753) | ($7,985) | ($8,225) | ($8,472) |
| 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 | $25,523 | $26,289 | $27,078 | $27,890 | $28,727 | $29,588 | $30,476 | $31,390 | $32,332 | $33,302 |
| - Mortgage Payments | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) | ($26,815) |
| = Cash Flow | ($1,292) | ($526) | $262 | $1,075 | $1,911 | $2,773 | $3,661 | $4,575 | $5,517 | $6,487 |
| + Principal Reduction | $4,099 | $4,369 | $4,655 | $4,961 | $5,287 | $5,634 | $6,003 | $6,398 | $6,818 | $7,265 |
| + Appreciation | $30,701 | $32,543 | $34,496 | $36,566 | $38,760 | $41,085 | $43,551 | $46,164 | $48,933 | $51,869 |
| = Gross Equity Income | $33,509 | $36,386 | $39,414 | $42,601 | $45,958 | $49,492 | $53,215 | $57,136 | $61,268 | $65,621 |
| Capitalization Rate | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% | 3.8% | 3.7% | 3.6% |
| Cash on Cash Return | -0.8% | -0.3% | 0.2% | 0.7% | 1.2% | 1.7% | 2.3% | 2.8% | 3.4% | 4.0% |
| Return on Equity | 17.8% | 16.2% | 14.9% | 13.9% | 13.1% | 12.5% | 11.9% | 11.5% | 11.0% | 10.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $542,391 | $574,935 | $609,431 | $645,997 | $684,757 | $725,842 | $769,393 | $815,556 | $864,489 | $916,359 |
| - Loan Balance | ($354,084) | ($349,715) | ($345,060) | ($340,099) | ($334,812) | ($329,178) | ($323,175) | ($316,777) | ($309,960) | ($302,695) |
| = Equity | $188,308 | $225,220 | $264,371 | $305,898 | $349,945 | $396,664 | $446,218 | $498,779 | $554,530 | $613,664 |
| Loan-to-Value Ratio | 65.3% | 60.8% | 56.6% | 52.6% | 48.9% | 45.4% | 42.0% | 38.8% | 35.9% | 33.0% |
| Potential Cash-Out Refi | $134,069 | $167,726 | $203,428 | $241,298 | $281,469 | $324,079 | $369,278 | $417,223 | $468,081 | $522,028 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $188,308 | $225,220 | $264,371 | $305,898 | $349,945 | $396,664 | $446,218 | $498,779 | $554,530 | $613,664 |
| - Closing Costs | ($37,967) | ($40,245) | ($42,660) | ($45,220) | ($47,933) | ($50,809) | ($53,857) | ($57,089) | ($60,514) | ($64,145) |
| = Proceeds After Sale | $150,340 | $184,974 | $221,711 | $260,678 | $302,012 | $345,855 | $392,360 | $441,690 | $494,015 | $549,519 |
| + Cumulative Cash Flow | ($1,292) | ($1,818) | ($1,556) | ($481) | $1,430 | $4,203 | $7,864 | $12,439 | $17,956 | $24,442 |
| - Approximate Cash Invested | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) | ($162,206) |
| = Net Profit | ($13,157) | $20,950 | $57,949 | $97,991 | $141,236 | $187,852 | $238,018 | $291,923 | $349,765 | $411,756 |
| Internal Rate of Return | -8.1% | 6.2% | 10.7% | 12.5% | 13.3% | 13.6% | 13.8% | 13.8% | 13.7% | 13.6% |
| Return on Investment | -8.1% | 12.9% | 35.7% | 60.4% | 87.1% | 115.8% | 146.7% | 180.0% | 215.6% | 253.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.