Occupied and Ready to Close
Memphis, TN 38109
3bd • 1ba • Built: 1954
| 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 | ($1,034) | ($1,065) | ($1,097) | ($1,130) | ($1,164) | ($1,199) | ($1,235) | ($1,272) | ($1,310) | ($1,349) |
| Insurance | ($747) | ($769) | ($792) | ($816) | ($841) | ($866) | ($892) | ($919) | ($946) | ($974) |
| 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 | ($1,051) | ($1,083) | ($1,115) | ($1,149) | ($1,183) | ($1,219) | ($1,255) | ($1,293) | ($1,332) | ($1,372) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,832) | ($2,917) | ($3,005) | ($3,095) | ($3,188) | ($3,283) | ($3,382) | ($3,483) | ($3,588) | ($3,695) |
| 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 | $9,257 | $9,534 | $9,820 | $10,115 | $10,418 | $10,731 | $11,053 | $11,385 | $11,726 | $12,078 |
| - Mortgage Payments | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) |
| = Cash Flow | $3,057 | $3,334 | $3,620 | $3,915 | $4,219 | $4,531 | $4,853 | $5,185 | $5,526 | $5,878 |
| + 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 | $11,009 | $11,766 | $12,559 | $13,392 | $14,266 | $15,184 | $16,148 | $17,159 | $18,222 | $19,339 |
| Capitalization Rate | 7.6% | 7.4% | 7.2% | 7.0% | 6.8% | 6.6% | 6.4% | 6.2% | 6.0% | 5.9% |
| Cash on Cash Return | 8.9% | 9.7% | 10.5% | 11.4% | 12.2% | 13.1% | 14.1% | 15.0% | 16.0% | 17.1% |
| Return on Equity | 30.0% | 26.1% | 23.2% | 21.1% | 19.4% | 18.0% | 16.9% | 16.0% | 15.2% | 14.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $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 | $3,057 | $6,391 | $10,012 | $13,927 | $18,145 | $22,676 | $27,529 | $32,714 | $38,240 | $44,118 |
| - Approximate Cash Invested | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) | ($34,470) |
| = Net Profit | ($3,262) | $7,992 | $20,009 | $32,827 | $46,484 | $61,023 | $76,486 | $92,920 | $110,373 | $128,896 |
| Internal Rate of Return | -9.5% | 11.4% | 17.7% | 20.1% | 21.0% | 21.3% | 21.3% | 21.2% | 20.9% | 20.7% |
| Return on Investment | -9.5% | 23.2% | 58.0% | 95.2% | 134.9% | 177.0% | 221.9% | 269.6% | 320.2% | 373.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.