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Duplex - Currently Occupied!
Phoenix, AZ 85032
6 bedrooms 4 bathrooms 2009 year built
One unit occupied
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected Rent | $45,600 | $46,968 | $48,377 | $49,828 | $51,323 | $52,863 | $54,449 | $56,082 | $57,765 | $59,498 |
| Vacancy Losses | ($3,648) | ($3,757) | ($3,870) | ($3,986) | ($4,106) | ($4,229) | ($4,356) | ($4,487) | ($4,621) | ($4,760) |
| Operating Income | $41,952 | $43,211 | $44,507 | $45,842 | $47,217 | $48,634 | $50,093 | $51,596 | $53,144 | $54,738 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Property Taxes | ($1,449) | ($1,492) | ($1,537) | ($1,583) | ($1,631) | ($1,680) | ($1,730) | ($1,782) | ($1,836) | ($1,891) |
| Insurance | ($690) | ($711) | ($732) | ($754) | ($777) | ($800) | ($824) | ($849) | ($874) | ($900) |
| Management Fees | ($3,356) | ($3,457) | ($3,561) | ($3,667) | ($3,777) | ($3,891) | ($4,007) | ($4,128) | ($4,251) | ($4,379) |
| 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 | ($1,368) | ($1,409) | ($1,451) | ($1,495) | ($1,540) | ($1,586) | ($1,633) | ($1,682) | ($1,733) | ($1,785) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,863) | ($7,069) | ($7,281) | ($7,500) | ($7,725) | ($7,956) | ($8,195) | ($8,441) | ($8,694) | ($8,955) |
| 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 | $35,089 | $36,142 | $37,226 | $38,343 | $39,493 | $40,678 | $41,898 | $43,155 | $44,449 | $45,783 |
| - Mortgage Payments | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) | ($31,395) |
| = Cash Flow | $3,694 | $4,747 | $5,831 | $6,948 | $8,098 | $9,283 | $10,503 | $11,760 | $13,054 | $14,388 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $41,400 | $43,884 | $46,517 | $49,308 | $52,267 | $55,403 | $58,727 | $62,250 | $65,985 | $69,944 |
| = Gross Equity Income | $45,094 | $48,631 | $52,348 | $56,256 | $60,364 | $64,685 | $69,230 | $74,010 | $79,040 | $84,332 |
| Capitalization Rate | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | 1.6% | 2.0% | 2.5% | 2.9% | 3.4% | 3.9% | 4.4% | 5.0% | 5.5% | 6.1% |
| Return on Equity | 18.2% | 16.6% | 15.5% | 14.5% | 13.7% | 13.0% | 12.5% | 12.0% | 11.6% | 11.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Value | $731,400 | $775,284 | $821,801 | $871,109 | $923,376 | $978,778 | $1,037,505 | $1,099,755 | $1,165,740 | $1,235,685 |
| - Loan Balance | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) | ($483,000) |
| = Equity | $248,400 | $292,284 | $338,801 | $388,109 | $440,376 | $495,778 | $554,505 | $616,755 | $682,740 | $752,685 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $175,260 | $214,756 | $256,621 | $300,998 | $348,038 | $397,900 | $450,754 | $506,780 | $566,166 | $629,116 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $248,400 | $292,284 | $338,801 | $388,109 | $440,376 | $495,778 | $554,505 | $616,755 | $682,740 | $752,685 |
| - Closing Costs | ($51,198) | ($54,270) | ($57,526) | ($60,978) | ($64,636) | ($68,514) | ($72,625) | ($76,983) | ($81,602) | ($86,498) |
| = Proceeds After Sale | $197,202 | $238,014 | $281,275 | $327,131 | $375,739 | $427,264 | $481,880 | $539,772 | $601,139 | $666,187 |
| + Cumulative Cash Flow | $3,694 | $8,440 | $14,271 | $21,219 | $29,316 | $38,599 | $49,102 | $60,862 | $73,916 | $88,304 |
| - Approximate Cash Invested | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) | ($237,360) |
| = Net Profit | ($36,464) | $9,094 | $58,186 | $110,990 | $167,696 | $228,503 | $293,621 | $363,274 | $437,695 | $517,131 |
| Internal Rate of Return | -15.4% | 1.9% | 7.7% | 10.3% | 11.6% | 12.3% | 12.7% | 12.9% | 13.0% | 13.0% |
| Return on Investment | -15.4% | 3.8% | 24.5% | 46.8% | 70.7% | 96.3% | 123.7% | 153.0% | 184.4% | 217.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
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