Pre-Leased Property
Memphis, TN 38141
3bd • 2ba • Built: 1983
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $17,340 | $17,860 | $18,396 | $18,948 | $19,516 | $20,102 | $20,705 | $21,326 | $21,966 | $22,625 |
| Vacancy Losses | ($1,387) | ($1,429) | ($1,472) | ($1,516) | ($1,561) | ($1,608) | ($1,656) | ($1,706) | ($1,757) | ($1,810) |
| Operating Income | $15,953 | $16,431 | $16,924 | $17,432 | $17,955 | $18,494 | $19,048 | $19,620 | $20,209 | $20,815 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,755) | ($1,808) | ($1,862) | ($1,918) | ($1,975) | ($2,035) | ($2,096) | ($2,158) | ($2,223) | ($2,290) |
| Insurance | ($975) | ($1,004) | ($1,034) | ($1,065) | ($1,097) | ($1,130) | ($1,164) | ($1,199) | ($1,235) | ($1,272) |
| Management Fees | ($1,276) | ($1,315) | ($1,354) | ($1,395) | ($1,436) | ($1,479) | ($1,524) | ($1,570) | ($1,617) | ($1,665) |
| 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 | ($1,387) | ($1,429) | ($1,472) | ($1,516) | ($1,561) | ($1,608) | ($1,656) | ($1,706) | ($1,757) | ($1,810) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,393) | ($5,555) | ($5,722) | ($5,894) | ($6,070) | ($6,252) | ($6,440) | ($6,633) | ($6,832) | ($7,037) |
| 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 | $10,559 | $10,876 | $11,202 | $11,539 | $11,885 | $12,241 | $12,608 | $12,987 | $13,376 | $13,778 |
| - Mortgage Payments | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) | ($10,522) |
| = Cash Flow | $37 | $354 | $680 | $1,016 | $1,363 | $1,719 | $2,086 | $2,465 | $2,854 | $3,256 |
| + Principal Reduction | $1,796 | $1,907 | $2,024 | $2,149 | $2,282 | $2,422 | $2,572 | $2,730 | $2,899 | $3,078 |
| + Appreciation | $11,700 | $12,402 | $13,146 | $13,935 | $14,771 | $15,657 | $16,597 | $17,592 | $18,648 | $19,767 |
| = Gross Equity Income | $13,533 | $14,663 | $15,851 | $17,100 | $18,415 | $19,799 | $21,255 | $22,788 | $24,401 | $26,100 |
| Capitalization Rate | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 3.9% |
| Cash on Cash Return | 0.1% | 0.5% | 1.0% | 1.5% | 2.0% | 2.6% | 3.1% | 3.7% | 4.3% | 4.9% |
| Return on Equity | 21.7% | 19.2% | 17.3% | 15.9% | 14.7% | 13.9% | 13.1% | 12.5% | 12.0% | 11.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $206,700 | $219,102 | $232,248 | $246,183 | $260,954 | $276,611 | $293,208 | $310,800 | $329,448 | $349,215 |
| - Loan Balance | ($144,454) | ($142,547) | ($140,523) | ($138,374) | ($136,092) | ($133,670) | ($131,098) | ($128,367) | ($125,469) | ($122,391) |
| = Equity | $62,246 | $76,555 | $91,725 | $107,809 | $124,862 | $142,941 | $162,110 | $182,433 | $203,980 | $226,824 |
| 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 | $41,576 | $54,644 | $68,500 | $83,191 | $98,766 | $115,280 | $132,789 | $151,353 | $171,035 | $191,903 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $62,246 | $76,555 | $91,725 | $107,809 | $124,862 | $142,941 | $162,110 | $182,433 | $203,980 | $226,824 |
| - Closing Costs | ($14,469) | ($15,337) | ($16,257) | ($17,233) | ($18,267) | ($19,363) | ($20,525) | ($21,756) | ($23,061) | ($24,445) |
| = Proceeds After Sale | $47,777 | $61,217 | $75,468 | $90,576 | $106,595 | $123,579 | $141,585 | $160,677 | $180,918 | $202,379 |
| + Cumulative Cash Flow | $37 | $391 | $1,072 | $2,088 | $3,451 | $5,170 | $7,256 | $9,721 | $12,575 | $15,831 |
| - Approximate Cash Invested | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) | ($66,550) |
| = Net Profit | ($18,736) | ($4,941) | $9,989 | $26,114 | $43,496 | $62,199 | $82,292 | $103,848 | $126,944 | $151,660 |
| Internal Rate of Return | -28.2% | -3.8% | 4.8% | 8.7% | 10.7% | 11.8% | 12.4% | 12.7% | 12.9% | 13.0% |
| Return on Investment | -28.2% | -7.4% | 15.0% | 39.2% | 65.4% | 93.5% | 123.7% | 156.0% | 190.7% | 227.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.