Occupied Property
Memphis, TN 38127
3bd • 1ba • Built: 1952
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $13,140 | $13,534 | $13,940 | $14,358 | $14,789 | $15,233 | $15,690 | $16,161 | $16,645 | $17,145 |
| Vacancy Losses | ($1,051) | ($1,083) | ($1,115) | ($1,149) | ($1,183) | ($1,219) | ($1,255) | ($1,293) | ($1,332) | ($1,372) |
| Operating Income | $12,089 | $12,451 | $12,825 | $13,210 | $13,606 | $14,014 | $14,435 | $14,868 | $15,314 | $15,773 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,092) | ($1,124) | ($1,158) | ($1,193) | ($1,229) | ($1,265) | ($1,303) | ($1,342) | ($1,383) | ($1,424) |
| Insurance | ($632) | ($651) | ($670) | ($691) | ($711) | ($733) | ($755) | ($777) | ($801) | ($825) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| 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 | ($657) | ($677) | ($697) | ($718) | ($739) | ($762) | ($784) | ($808) | ($832) | ($857) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,381) | ($2,452) | ($2,525) | ($2,601) | ($2,679) | ($2,760) | ($2,842) | ($2,928) | ($3,016) | ($3,106) |
| 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 | $9,708 | $10,000 | $10,300 | $10,609 | $10,927 | $11,255 | $11,592 | $11,940 | $12,298 | $12,667 |
| - Mortgage Payments | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) |
| = Cash Flow | $3,508 | $3,800 | $4,100 | $4,409 | $4,727 | $5,055 | $5,392 | $5,740 | $6,098 | $6,467 |
| + Principal Reduction | $1,058 | $1,123 | $1,193 | $1,266 | $1,344 | $1,427 | $1,515 | $1,609 | $1,708 | $1,813 |
| + Appreciation | $6,894 | $7,308 | $7,746 | $8,211 | $8,704 | $9,226 | $9,779 | $10,366 | $10,988 | $11,647 |
| = Gross Equity Income | $11,461 | $12,231 | $13,038 | $13,886 | $14,775 | $15,708 | $16,687 | $17,715 | $18,794 | $19,928 |
| Capitalization Rate | 8.0% | 7.7% | 7.5% | 7.3% | 7.1% | 6.9% | 6.7% | 6.5% | 6.3% | 6.2% |
| Cash on Cash Return | 10.9% | 11.8% | 12.7% | 13.7% | 14.7% | 15.7% | 16.8% | 17.8% | 19.0% | 20.1% |
| Return on Equity | 31.2% | 27.1% | 24.1% | 21.9% | 20.1% | 18.6% | 17.5% | 16.5% | 15.6% | 14.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $121,794 | $129,102 | $136,848 | $145,059 | $153,762 | $162,988 | $172,767 | $183,133 | $194,121 | $205,768 |
| - Loan Balance | ($85,117) | ($83,993) | ($82,801) | ($81,534) | ($80,190) | ($78,762) | ($77,247) | ($75,638) | ($73,930) | ($72,117) |
| = Equity | $36,677 | $45,108 | $54,047 | $63,524 | $73,572 | $84,225 | $95,520 | $107,495 | $120,191 | $133,652 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.2% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $24,498 | $32,198 | $40,362 | $49,019 | $58,196 | $67,927 | $78,243 | $89,182 | $100,779 | $113,075 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $36,677 | $45,108 | $54,047 | $63,524 | $73,572 | $84,225 | $95,520 | $107,495 | $120,191 | $133,652 |
| - Closing Costs | ($8,526) | ($9,037) | ($9,579) | ($10,154) | ($10,763) | ($11,409) | ($12,094) | ($12,819) | ($13,588) | ($14,404) |
| = Proceeds After Sale | $28,152 | $36,071 | $44,468 | $53,370 | $62,809 | $72,816 | $83,426 | $94,676 | $106,603 | $119,248 |
| + Cumulative Cash Flow | $3,508 | $7,308 | $11,408 | $15,816 | $20,543 | $25,598 | $30,990 | $36,730 | $42,828 | $49,296 |
| - Approximate Cash Invested | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) | ($32,172) |
| = Net Profit | ($512) | $11,207 | $23,703 | $37,014 | $51,180 | $66,242 | $82,244 | $99,234 | $117,259 | $136,372 |
| Internal Rate of Return | -1.6% | 16.9% | 22.0% | 23.7% | 24.2% | 24.1% | 23.9% | 23.6% | 23.2% | 22.8% |
| Return on Investment | -1.6% | 34.8% | 73.7% | 115.1% | 159.1% | 205.9% | 255.6% | 308.4% | 364.5% | 423.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.