| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $16,800 | $17,304 | $17,823 | $18,358 | $18,909 | $19,476 | $20,060 | $20,662 | $21,282 | $21,920 |
| Vacancy Losses | ($1,344) | ($1,384) | ($1,426) | ($1,469) | ($1,513) | ($1,558) | ($1,605) | ($1,653) | ($1,703) | ($1,754) |
| Operating Income | $15,456 | $15,920 | $16,397 | $16,889 | $17,396 | $17,918 | $18,455 | $19,009 | $19,579 | $20,167 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,234) | ($1,271) | ($1,310) | ($1,349) | ($1,389) | ($1,431) | ($1,474) | ($1,518) | ($1,564) | ($1,611) |
| Insurance | ($798) | ($822) | ($846) | ($872) | ($898) | ($925) | ($952) | ($981) | ($1,010) | ($1,041) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($240) | ($247) | ($255) | ($262) | ($270) | ($278) | ($287) | ($295) | ($304) | ($313) |
| Maintenance | ($840) | ($865) | ($891) | ($918) | ($945) | ($974) | ($1,003) | ($1,033) | ($1,064) | ($1,096) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,144) | ($4,268) | ($4,396) | ($4,528) | ($4,664) | ($4,804) | ($4,948) | ($5,097) | ($5,249) | ($5,407) |
| 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 | $11,312 | $11,651 | $12,001 | $12,361 | $12,732 | $13,114 | $13,507 | $13,912 | $14,330 | $14,760 |
| - Mortgage Payments | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) | ($10,523) |
| = Cash Flow | $789 | $1,128 | $1,478 | $1,838 | $2,209 | $2,591 | $2,984 | $3,389 | $3,807 | $4,236 |
| + Principal Reduction | $1,669 | $1,776 | $1,891 | $2,012 | $2,142 | $2,279 | $2,426 | $2,582 | $2,748 | $2,925 |
| + Appreciation | $11,394 | $12,078 | $12,802 | $13,570 | $14,385 | $15,248 | $16,163 | $17,132 | $18,160 | $19,250 |
| = Gross Equity Income | $13,852 | $14,982 | $16,171 | $17,420 | $18,735 | $20,118 | $21,573 | $23,104 | $24,715 | $26,411 |
| Capitalization Rate | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% |
| Cash on Cash Return | 1.4% | 1.9% | 2.6% | 3.2% | 3.8% | 4.5% | 5.2% | 5.9% | 6.6% | 7.3% |
| Return on Equity | 22.9% | 20.1% | 18.2% | 16.6% | 15.5% | 14.5% | 13.7% | 13.1% | 12.5% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $201,294 | $213,372 | $226,174 | $239,744 | $254,129 | $269,377 | $285,539 | $302,672 | $320,832 | $340,082 |
| - Loan Balance | ($140,756) | ($138,980) | ($137,089) | ($135,077) | ($132,935) | ($130,656) | ($128,230) | ($125,648) | ($122,900) | ($119,975) |
| = Equity | $60,538 | $74,392 | $89,085 | $104,667 | $121,194 | $138,721 | $157,310 | $177,024 | $197,932 | $220,107 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.6% | 56.3% | 52.3% | 48.5% | 44.9% | 41.5% | 38.3% | 35.3% |
| Potential Cash-Out Refi | $40,409 | $53,055 | $66,467 | $80,693 | $95,781 | $111,783 | $128,756 | $146,757 | $165,849 | $186,099 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $60,538 | $74,392 | $89,085 | $104,667 | $121,194 | $138,721 | $157,310 | $177,024 | $197,932 | $220,107 |
| - Closing Costs | ($14,091) | ($14,936) | ($15,832) | ($16,782) | ($17,789) | ($18,856) | ($19,988) | ($21,187) | ($22,458) | ($23,806) |
| = Proceeds After Sale | $46,447 | $59,456 | $73,253 | $87,885 | $103,405 | $119,865 | $137,322 | $155,837 | $175,474 | $196,301 |
| + Cumulative Cash Flow | $789 | $1,917 | $3,395 | $5,232 | $7,441 | $10,031 | $13,015 | $16,404 | $20,211 | $24,447 |
| - Approximate Cash Invested | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) | ($57,920) |
| = Net Profit | ($10,683) | $3,453 | $18,728 | $35,198 | $52,926 | $71,976 | $92,418 | $114,322 | $137,766 | $162,829 |
| Internal Rate of Return | -18.4% | 3.0% | 9.9% | 12.9% | 14.2% | 14.9% | 15.2% | 15.3% | 15.2% | 15.2% |
| Return on Investment | -18.4% | 6.0% | 32.3% | 60.8% | 91.4% | 124.3% | 159.6% | 197.4% | 237.9% | 281.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.