| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $104,400 | $107,532 | $110,758 | $114,081 | $117,503 | $121,028 | $124,659 | $128,399 | $132,251 | $136,218 |
| Vacancy Losses | ($8,352) | ($8,603) | ($8,861) | ($9,126) | ($9,400) | ($9,682) | ($9,973) | ($10,272) | ($10,580) | ($10,897) |
| Operating Income | $96,048 | $98,929 | $101,897 | $104,954 | $108,103 | $111,346 | $114,686 | $118,127 | $121,671 | $125,321 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,708) | ($1,759) | ($1,812) | ($1,866) | ($1,922) | ($1,980) | ($2,039) | ($2,101) | ($2,164) | ($2,229) |
| Insurance | ($1,647) | ($1,696) | ($1,747) | ($1,800) | ($1,854) | ($1,909) | ($1,967) | ($2,026) | ($2,086) | ($2,149) |
| Management Fees | ($15,368) | ($15,829) | ($16,304) | ($16,793) | ($17,296) | ($17,815) | ($18,350) | ($18,900) | ($19,467) | ($20,051) |
| 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 | ($3,132) | ($3,226) | ($3,323) | ($3,422) | ($3,525) | ($3,631) | ($3,740) | ($3,852) | ($3,968) | ($4,087) |
| Other | ($26,304) | ($27,093) | ($27,906) | ($28,743) | ($29,605) | ($30,494) | ($31,408) | ($32,351) | ($33,321) | ($34,321) |
| Operating Expenses | ($48,159) | ($49,603) | ($51,092) | ($52,624) | ($54,203) | ($55,829) | ($57,504) | ($59,229) | ($61,006) | ($62,836) |
| 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 | $47,889 | $49,326 | $50,806 | $52,330 | $53,900 | $55,517 | $57,182 | $58,898 | $60,665 | $62,485 |
| - Mortgage Payments | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) | ($33,803) |
| = Cash Flow | $14,086 | $15,523 | $17,003 | $18,527 | $20,097 | $21,714 | $23,379 | $25,095 | $26,862 | $28,682 |
| + Principal Reduction | $5,361 | $5,706 | $6,073 | $6,463 | $6,879 | $7,322 | $7,793 | $8,294 | $8,827 | $9,395 |
| + Appreciation | $36,600 | $38,796 | $41,124 | $43,591 | $46,207 | $48,979 | $51,918 | $55,033 | $58,335 | $61,835 |
| = Gross Equity Income | $56,047 | $60,025 | $64,199 | $68,582 | $73,183 | $78,015 | $83,090 | $88,422 | $94,024 | $99,912 |
| Capitalization Rate | 7.4% | 7.2% | 7.0% | 6.8% | 6.6% | 6.4% | 6.2% | 6.1% | 5.9% | 5.7% |
| Cash on Cash Return | 7.8% | 8.6% | 9.4% | 10.3% | 11.2% | 12.1% | 13.0% | 13.9% | 14.9% | 15.9% |
| Return on Equity | 28.8% | 25.1% | 22.4% | 20.4% | 18.8% | 17.5% | 16.4% | 15.5% | 14.8% | 14.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $646,600 | $685,396 | $726,520 | $770,111 | $816,318 | $865,297 | $917,214 | $972,247 | $1,030,582 | $1,092,417 |
| - Loan Balance | ($452,139) | ($446,433) | ($440,360) | ($433,897) | ($427,018) | ($419,696) | ($411,903) | ($403,609) | ($394,782) | ($385,387) |
| = Equity | $194,461 | $238,963 | $286,159 | $336,214 | $389,300 | $445,601 | $505,311 | $568,638 | $635,800 | $707,030 |
| 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 | $129,801 | $170,423 | $213,507 | $259,203 | $307,668 | $359,071 | $413,590 | $471,413 | $532,742 | $597,789 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $194,461 | $238,963 | $286,159 | $336,214 | $389,300 | $445,601 | $505,311 | $568,638 | $635,800 | $707,030 |
| - Closing Costs | ($45,262) | ($47,978) | ($50,856) | ($53,908) | ($57,142) | ($60,571) | ($64,205) | ($68,057) | ($72,141) | ($76,469) |
| = Proceeds After Sale | $149,199 | $190,985 | $235,303 | $282,306 | $332,158 | $385,030 | $441,106 | $500,581 | $563,659 | $630,561 |
| + Cumulative Cash Flow | $14,086 | $29,609 | $46,612 | $65,139 | $85,236 | $106,950 | $130,330 | $155,425 | $182,286 | $210,968 |
| - Approximate Cash Invested | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) | ($179,950) |
| = Net Profit | ($16,665) | $40,645 | $101,965 | $167,496 | $237,444 | $312,030 | $391,486 | $476,055 | $565,996 | $661,579 |
| Internal Rate of Return | -9.3% | 11.1% | 17.2% | 19.5% | 20.4% | 20.7% | 20.7% | 20.6% | 20.3% | 20.1% |
| Return on Investment | -9.3% | 22.6% | 56.7% | 93.1% | 132.0% | 173.4% | 217.6% | 264.5% | 314.5% | 367.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.