| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $24,000 | $24,720 | $25,462 | $26,225 | $27,012 | $27,823 | $28,657 | $29,517 | $30,402 | $31,315 |
| Vacancy Losses | ($1,920) | ($1,978) | ($2,037) | ($2,098) | ($2,161) | ($2,226) | ($2,293) | ($2,361) | ($2,432) | ($2,505) |
| Operating Income | $22,080 | $22,742 | $23,425 | $24,127 | $24,851 | $25,597 | $26,365 | $27,156 | $27,970 | $28,809 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,000) | ($2,060) | ($2,122) | ($2,185) | ($2,251) | ($2,318) | ($2,388) | ($2,460) | ($2,533) | ($2,609) |
| Insurance | ($600) | ($618) | ($637) | ($656) | ($675) | ($696) | ($716) | ($738) | ($760) | ($783) |
| Management Fees | ($1,766) | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,048) | ($2,109) | ($2,172) | ($2,238) | ($2,305) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($1,368) | ($1,409) | ($1,451) | ($1,495) | ($1,540) | ($1,586) | ($1,633) | ($1,682) | ($1,733) | ($1,785) |
| Maintenance | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,214) | ($6,401) | ($6,593) | ($6,791) | ($6,994) | ($7,204) | ($7,420) | ($7,643) | ($7,872) | ($8,108) |
| 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 | $15,866 | $16,342 | $16,832 | $17,337 | $17,857 | $18,393 | $18,944 | $19,513 | $20,098 | $20,701 |
| - Mortgage Payments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Cash Flow | $15,866 | $16,342 | $16,832 | $17,337 | $17,857 | $18,393 | $18,944 | $19,513 | $20,098 | $20,701 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $23,999 | $25,439 | $26,966 | $28,584 | $30,299 | $32,117 | $34,044 | $36,086 | $38,251 | $40,546 |
| = Gross Equity Income | $39,865 | $41,781 | $43,798 | $45,921 | $48,156 | $50,509 | $52,988 | $55,599 | $58,350 | $61,248 |
| Capitalization Rate | 3.7% | 3.6% | 3.5% | 3.4% | 3.3% | 3.2% | 3.1% | 3.1% | 3.0% | 2.9% |
| Cash on Cash Return | 3.9% | 4.0% | 4.2% | 4.3% | 4.4% | 4.6% | 4.7% | 4.8% | 5.0% | 5.1% |
| Return on Equity | 9.4% | 9.3% | 9.2% | 9.1% | 9.0% | 8.9% | 8.8% | 8.7% | 8.6% | 8.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $423,989 | $449,429 | $476,394 | $504,978 | $535,277 | $567,393 | $601,437 | $637,523 | $675,775 | $716,321 |
| - Loan Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Equity | $423,989 | $449,429 | $476,394 | $504,978 | $535,277 | $567,393 | $601,437 | $637,523 | $675,775 | $716,321 |
| 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 | $381,590 | $404,486 | $428,755 | $454,480 | $481,749 | $510,654 | $541,293 | $573,771 | $608,197 | $644,689 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $423,989 | $449,429 | $476,394 | $504,978 | $535,277 | $567,393 | $601,437 | $637,523 | $675,775 | $716,321 |
| - Closing Costs | ($29,679) | ($31,460) | ($33,348) | ($35,348) | ($37,469) | ($39,718) | ($42,101) | ($44,627) | ($47,304) | ($50,142) |
| = Proceeds After Sale | $394,310 | $417,969 | $443,047 | $469,630 | $497,807 | $527,676 | $559,336 | $592,897 | $628,470 | $666,179 |
| + Cumulative Cash Flow | $15,866 | $32,207 | $49,039 | $66,376 | $84,233 | $102,626 | $121,570 | $141,083 | $161,181 | $181,882 |
| - Approximate Cash Invested | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) | ($403,990) |
| = Net Profit | $6,186 | $46,186 | $88,096 | $132,016 | $178,051 | $226,312 | $276,917 | $329,990 | $385,662 | $444,071 |
| Internal Rate of Return | 1.5% | 5.7% | 7.0% | 7.7% | 8.1% | 8.3% | 8.5% | 8.6% | 8.7% | 8.7% |
| Return on Investment | 1.5% | 11.4% | 21.8% | 32.7% | 44.1% | 56.0% | 68.5% | 81.7% | 95.5% | 109.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.