Pre-Leased Property
Memphis, TN 38141
3bd • 2ba • Built: 1987
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $15,540 | $16,006 | $16,486 | $16,981 | $17,490 | $18,015 | $18,556 | $19,112 | $19,686 | $20,276 |
| Vacancy Losses | ($1,243) | ($1,280) | ($1,319) | ($1,358) | ($1,399) | ($1,441) | ($1,484) | ($1,529) | ($1,575) | ($1,622) |
| Operating Income | $14,297 | $14,726 | $15,167 | $15,622 | $16,091 | $16,574 | $17,071 | $17,583 | $18,111 | $18,654 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,426) | ($1,468) | ($1,512) | ($1,558) | ($1,605) | ($1,653) | ($1,702) | ($1,753) | ($1,806) | ($1,860) |
| Insurance | ($792) | ($816) | ($840) | ($865) | ($891) | ($918) | ($946) | ($974) | ($1,003) | ($1,033) |
| Management Fees | ($1,144) | ($1,178) | ($1,213) | ($1,250) | ($1,287) | ($1,326) | ($1,366) | ($1,407) | ($1,449) | ($1,492) |
| 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 | ($1,243) | ($1,280) | ($1,319) | ($1,358) | ($1,399) | ($1,441) | ($1,484) | ($1,529) | ($1,575) | ($1,622) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,605) | ($4,743) | ($4,885) | ($5,032) | ($5,182) | ($5,338) | ($5,498) | ($5,663) | ($5,833) | ($6,008) |
| 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 | $9,692 | $9,983 | $10,283 | $10,591 | $10,909 | $11,236 | $11,573 | $11,920 | $12,278 | $12,646 |
| - Mortgage Payments | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) | ($8,547) |
| = Cash Flow | $1,145 | $1,436 | $1,735 | $2,044 | $2,361 | $2,689 | $3,026 | $3,373 | $3,731 | $4,099 |
| + Principal Reduction | $1,459 | $1,549 | $1,644 | $1,746 | $1,854 | $1,968 | $2,089 | $2,218 | $2,355 | $2,500 |
| + Appreciation | $9,504 | $10,074 | $10,679 | $11,319 | $11,999 | $12,718 | $13,482 | $14,291 | $15,148 | $16,057 |
| = Gross Equity Income | $12,108 | $13,059 | $14,058 | $15,109 | $16,214 | $17,375 | $18,597 | $19,882 | $21,233 | $22,656 |
| Capitalization Rate | 5.8% | 5.6% | 5.5% | 5.3% | 5.1% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% |
| Cash on Cash Return | 2.0% | 2.6% | 3.1% | 3.7% | 4.2% | 4.8% | 5.4% | 6.0% | 6.7% | 7.3% |
| Return on Equity | 23.9% | 21.0% | 18.9% | 17.3% | 16.0% | 15.0% | 14.1% | 13.4% | 12.8% | 12.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $167,904 | $177,978 | $188,657 | $199,976 | $211,975 | $224,693 | $238,175 | $252,466 | $267,613 | $283,670 |
| - Loan Balance | ($117,341) | ($115,792) | ($114,148) | ($112,402) | ($110,548) | ($108,580) | ($106,491) | ($104,273) | ($101,918) | ($99,418) |
| = Equity | $50,563 | $62,186 | $74,509 | $87,575 | $101,427 | $116,113 | $131,684 | $148,193 | $165,695 | $184,252 |
| 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 | $33,773 | $44,388 | $55,644 | $67,577 | $80,229 | $93,644 | $107,866 | $122,946 | $138,934 | $155,885 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $50,563 | $62,186 | $74,509 | $87,575 | $101,427 | $116,113 | $131,684 | $148,193 | $165,695 | $184,252 |
| - Closing Costs | ($11,753) | ($12,458) | ($13,206) | ($13,998) | ($14,838) | ($15,729) | ($16,672) | ($17,673) | ($18,733) | ($19,857) |
| = Proceeds After Sale | $38,810 | $49,728 | $61,303 | $73,576 | $86,588 | $100,385 | $115,012 | $130,520 | $146,962 | $164,395 |
| + Cumulative Cash Flow | $1,145 | $2,581 | $4,316 | $6,360 | $8,721 | $11,410 | $14,436 | $17,809 | $21,539 | $25,638 |
| - Approximate Cash Invested | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) | ($55,936) |
| = Net Profit | ($15,981) | ($3,628) | $9,683 | $24,000 | $39,374 | $55,859 | $73,512 | $92,393 | $112,566 | $134,098 |
| Internal Rate of Return | -28.6% | -3.3% | 5.6% | 9.6% | 11.7% | 12.8% | 13.4% | 13.8% | 13.9% | 14.0% |
| Return on Investment | -28.6% | -6.5% | 17.3% | 42.9% | 70.4% | 99.9% | 131.4% | 165.2% | 201.2% | 239.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.