Pre-Leased Property
Memphis, TN 38133
3bd • 2ba • Built: 1976
| 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 | ($1,575) | ($1,622) | ($1,671) | ($1,721) | ($1,773) | ($1,826) | ($1,881) | ($1,937) | ($1,995) | ($2,055) |
| Insurance | ($875) | ($901) | ($928) | ($956) | ($985) | ($1,014) | ($1,045) | ($1,076) | ($1,108) | ($1,142) |
| 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 | ($4,837) | ($4,982) | ($5,132) | ($5,285) | ($5,444) | ($5,607) | ($5,776) | ($5,949) | ($6,127) | ($6,311) |
| 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 | $9,460 | $9,744 | $10,036 | $10,337 | $10,647 | $10,967 | $11,296 | $11,634 | $11,983 | $12,343 |
| - Mortgage Payments | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) | ($9,443) |
| = Cash Flow | $17 | $301 | $593 | $894 | $1,204 | $1,524 | $1,853 | $2,192 | $2,541 | $2,900 |
| + Principal Reduction | $1,612 | $1,711 | $1,817 | $1,929 | $2,048 | $2,174 | $2,308 | $2,450 | $2,602 | $2,762 |
| + Appreciation | $10,500 | $11,130 | $11,798 | $12,506 | $13,256 | $14,051 | $14,894 | $15,788 | $16,735 | $17,740 |
| = Gross Equity Income | $12,129 | $13,142 | $14,208 | $15,329 | $16,508 | $17,749 | $19,055 | $20,430 | $21,878 | $23,402 |
| Capitalization Rate | 5.1% | 5.0% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% | 3.9% |
| Cash on Cash Return | 0.0% | 0.5% | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% | 3.6% | 4.2% | 4.8% |
| Return on Equity | 21.7% | 19.1% | 17.3% | 15.8% | 14.7% | 13.8% | 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 | $185,500 | $196,630 | $208,428 | $220,933 | $234,189 | $248,241 | $263,135 | $278,923 | $295,659 | $313,398 |
| - Loan Balance | ($129,638) | ($127,927) | ($126,110) | ($124,182) | ($122,134) | ($119,960) | ($117,652) | ($115,201) | ($112,600) | ($109,838) |
| = Equity | $55,862 | $68,703 | $82,317 | $96,752 | $112,056 | $128,281 | $145,484 | $163,722 | $183,059 | $203,561 |
| 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 | $37,312 | $49,040 | $61,475 | $74,659 | $88,637 | $103,457 | $119,170 | $135,830 | $153,493 | $172,221 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $55,862 | $68,703 | $82,317 | $96,752 | $112,056 | $128,281 | $145,484 | $163,722 | $183,059 | $203,561 |
| - Closing Costs | ($12,985) | ($13,764) | ($14,590) | ($15,465) | ($16,393) | ($17,377) | ($18,419) | ($19,525) | ($20,696) | ($21,938) |
| = Proceeds After Sale | $42,877 | $54,939 | $67,727 | $81,287 | $95,662 | $110,904 | $127,064 | $144,198 | $162,363 | $181,623 |
| + Cumulative Cash Flow | $17 | $318 | $911 | $1,805 | $3,009 | $4,533 | $6,385 | $8,577 | $11,117 | $14,017 |
| - Approximate Cash Invested | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) | ($60,750) |
| = Net Profit | ($17,856) | ($5,494) | $7,888 | $22,341 | $37,921 | $54,687 | $72,699 | $92,024 | $112,730 | $134,890 |
| Internal Rate of Return | -29.4% | -4.6% | 4.2% | 8.2% | 10.3% | 11.4% | 12.1% | 12.4% | 12.6% | 12.7% |
| Return on Investment | -29.4% | -9.0% | 13.0% | 36.8% | 62.4% | 90.0% | 119.7% | 151.5% | 185.6% | 222.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.