| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $33,600 | $34,608 | $35,646 | $36,716 | $37,817 | $38,952 | $40,120 | $41,324 | $42,563 | $43,840 |
| Vacancy Losses | ($2,688) | ($2,769) | ($2,852) | ($2,937) | ($3,025) | ($3,116) | ($3,210) | ($3,306) | ($3,405) | ($3,507) |
| Operating Income | $30,912 | $31,839 | $32,795 | $33,778 | $34,792 | $35,835 | $36,911 | $38,018 | $39,158 | $40,333 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,448) | ($2,521) | ($2,597) | ($2,675) | ($2,755) | ($2,838) | ($2,923) | ($3,011) | ($3,101) | ($3,194) |
| Insurance | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| 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 | ($672) | ($692) | ($713) | ($734) | ($756) | ($779) | ($802) | ($826) | ($851) | ($877) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,228) | ($6,415) | ($6,607) | ($6,805) | ($7,010) | ($7,220) | ($7,436) | ($7,660) | ($7,889) | ($8,126) |
| 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 | $24,684 | $25,425 | $26,187 | $26,973 | $27,782 | $28,616 | $29,474 | $30,358 | $31,269 | $32,207 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $24,684 | $25,425 | $26,187 | $26,973 | $27,782 | $28,616 | $29,474 | $30,358 | $31,269 | $32,207 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $28,799 | $30,527 | $32,359 | $34,301 | $36,359 | $38,540 | $40,852 | $43,304 | $45,902 | $48,656 |
| = Gross Equity Income | $53,483 | $55,952 | $58,546 | $61,274 | $64,141 | $67,156 | $70,327 | $73,662 | $77,171 | $80,863 |
| Capitalization Rate | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% | 4.1% | 4.0% | 3.9% | 3.7% |
| Cash on Cash Return | 5.1% | 5.2% | 5.4% | 5.6% | 5.7% | 5.9% | 6.1% | 6.3% | 6.5% | 6.6% |
| Return on Equity | 10.5% | 10.4% | 10.2% | 10.1% | 10.0% | 9.9% | 9.7% | 9.6% | 9.5% | 9.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $508,789 | $539,317 | $571,676 | $605,976 | $642,335 | $680,875 | $721,727 | $765,031 | $810,933 | $859,589 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $508,789 | $539,317 | $571,676 | $605,976 | $642,335 | $680,875 | $721,727 | $765,031 | $810,933 | $859,589 |
| Loan-to-Value Ratio | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Potential Cash-Out Refi | $457,910 | $485,385 | $514,508 | $545,379 | $578,101 | $612,787 | $649,555 | $688,528 | $729,840 | $773,630 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $508,789 | $539,317 | $571,676 | $605,976 | $642,335 | $680,875 | $721,727 | $765,031 | $810,933 | $859,589 |
| - Closing Costs | ($35,615) | ($37,752) | ($40,017) | ($42,418) | ($44,963) | ($47,661) | ($50,521) | ($53,552) | ($56,765) | ($60,171) |
| = Proceeds After Sale | $473,174 | $501,565 | $531,658 | $563,558 | $597,371 | $633,214 | $671,207 | $711,479 | $754,168 | $799,418 |
| + Cumulative Cash Flow | $24,684 | $50,109 | $76,296 | $103,269 | $131,051 | $159,667 | $189,141 | $219,499 | $250,768 | $282,975 |
| - Approximate Cash Invested | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) | ($484,790) |
| = Net Profit | $13,068 | $66,883 | $123,165 | $182,037 | $243,633 | $308,091 | $375,557 | $446,188 | $520,146 | $597,603 |
| Internal Rate of Return | 2.7% | 6.8% | 8.2% | 8.9% | 9.2% | 9.5% | 9.6% | 9.7% | 9.8% | 9.8% |
| Return on Investment | 2.7% | 13.8% | 25.4% | 37.5% | 50.3% | 63.6% | 77.5% | 92.0% | 107.3% | 123.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.