| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $92,352 | $95,123 | $97,976 | $100,916 | $103,943 | $107,061 | $110,273 | $113,581 | $116,989 | $120,498 |
| Vacancy Losses | ($11,082) | ($11,415) | ($11,757) | ($12,110) | ($12,473) | ($12,847) | ($13,233) | ($13,630) | ($14,039) | ($14,460) |
| Operating Income | $81,270 | $83,708 | $86,219 | $88,806 | $91,470 | $94,214 | $97,040 | $99,952 | $102,950 | $106,039 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($6,558) | ($6,755) | ($6,958) | ($7,167) | ($7,382) | ($7,603) | ($7,831) | ($8,066) | ($8,308) | ($8,557) |
| Insurance | ($2,050) | ($2,111) | ($2,174) | ($2,240) | ($2,307) | ($2,376) | ($2,447) | ($2,521) | ($2,596) | ($2,674) |
| Management Fees | ($13,003) | ($13,393) | ($13,795) | ($14,209) | ($14,635) | ($15,074) | ($15,526) | ($15,992) | ($16,472) | ($16,966) |
| 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 | ($5,541) | ($5,707) | ($5,879) | ($6,055) | ($6,237) | ($6,424) | ($6,616) | ($6,815) | ($7,019) | ($7,230) |
| Other | ($12,000) | ($12,360) | ($12,731) | ($13,113) | ($13,506) | ($13,911) | ($14,329) | ($14,758) | ($15,201) | ($15,657) |
| Operating Expenses | ($39,152) | ($40,327) | ($41,537) | ($42,783) | ($44,066) | ($45,388) | ($46,750) | ($48,152) | ($49,597) | ($51,085) |
| 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 | $42,118 | $43,381 | $44,683 | $46,023 | $47,404 | $48,826 | $50,291 | $51,799 | $53,353 | $54,954 |
| - Mortgage Payments | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) | ($23,927) |
| = Cash Flow | $18,190 | $19,454 | $20,755 | $22,096 | $23,476 | $24,898 | $26,363 | $27,872 | $29,426 | $31,026 |
| + Principal Reduction | $3,276 | $3,504 | $3,748 | $4,009 | $4,289 | $4,587 | $4,907 | $5,248 | $5,614 | $6,005 |
| + Appreciation | $24,594 | $26,070 | $27,634 | $29,292 | $31,049 | $32,912 | $34,887 | $36,980 | $39,199 | $41,551 |
| = Gross Equity Income | $46,061 | $49,028 | $52,137 | $55,397 | $58,814 | $62,398 | $66,157 | $70,100 | $74,239 | $78,582 |
| Capitalization Rate | 9.7% | 9.4% | 9.2% | 8.9% | 8.6% | 8.4% | 8.2% | 7.9% | 7.7% | 7.5% |
| Cash on Cash Return | 15.8% | 16.9% | 18.0% | 19.2% | 20.4% | 21.6% | 22.9% | 24.2% | 25.5% | 26.9% |
| Return on Equity | 35.3% | 30.7% | 27.3% | 24.7% | 22.6% | 21.0% | 19.6% | 18.5% | 17.5% | 16.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $434,494 | $460,564 | $488,197 | $517,489 | $548,539 | $581,451 | $616,338 | $653,318 | $692,517 | $734,068 |
| - Loan Balance | ($304,149) | ($300,644) | ($296,896) | ($292,886) | ($288,598) | ($284,010) | ($279,104) | ($273,855) | ($268,242) | ($262,237) |
| = Equity | $130,345 | $159,919 | $191,302 | $224,603 | $259,941 | $297,441 | $337,234 | $379,463 | $424,276 | $471,831 |
| Loan-to-Value Ratio | 70.0% | 65.3% | 60.8% | 56.6% | 52.6% | 48.8% | 45.3% | 41.9% | 38.7% | 35.7% |
| Potential Cash-Out Refi | $86,896 | $113,863 | $142,482 | $172,854 | $205,087 | $239,296 | $275,601 | $314,131 | $355,024 | $398,425 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $130,345 | $159,919 | $191,302 | $224,603 | $259,941 | $297,441 | $337,234 | $379,463 | $424,276 | $471,831 |
| - Closing Costs | ($30,415) | ($32,239) | ($34,174) | ($36,224) | ($38,398) | ($40,702) | ($43,144) | ($45,732) | ($48,476) | ($51,385) |
| = Proceeds After Sale | $99,931 | $127,680 | $157,128 | $188,379 | $221,543 | $256,739 | $294,091 | $333,731 | $375,800 | $420,447 |
| + Cumulative Cash Flow | $18,190 | $37,644 | $58,399 | $80,495 | $103,971 | $128,869 | $155,233 | $183,104 | $212,530 | $243,557 |
| - Approximate Cash Invested | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) | ($115,284) |
| = Net Profit | $2,837 | $50,039 | $100,243 | $153,589 | $210,230 | $270,324 | $334,039 | $401,551 | $473,045 | $548,719 |
| Internal Rate of Return | 2.5% | 21.1% | 26.1% | 27.7% | 28.1% | 28.0% | 27.6% | 27.2% | 26.8% | 26.4% |
| Return on Investment | 2.5% | 43.4% | 87.0% | 133.2% | 182.4% | 234.5% | 289.8% | 348.3% | 410.3% | 476.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.