Cash Flow Property
Memphis, TN 38116
4bd • 2ba • Built: 1966
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $16,740 | $17,242 | $17,759 | $18,292 | $18,841 | $19,406 | $19,988 | $20,588 | $21,206 | $21,842 |
| Vacancy Losses | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) | ($1,552) | ($1,599) | ($1,647) | ($1,696) | ($1,747) |
| Operating Income | $15,401 | $15,863 | $16,339 | $16,829 | $17,334 | $17,854 | $18,389 | $18,941 | $19,509 | $20,095 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,484) | ($1,529) | ($1,574) | ($1,622) | ($1,670) | ($1,720) | ($1,772) | ($1,825) | ($1,880) | ($1,936) |
| Insurance | ($825) | ($849) | ($875) | ($901) | ($928) | ($956) | ($984) | ($1,014) | ($1,044) | ($1,076) |
| 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 | ($1,339) | ($1,379) | ($1,421) | ($1,463) | ($1,507) | ($1,552) | ($1,599) | ($1,647) | ($1,696) | ($1,747) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,648) | ($3,757) | ($3,870) | ($3,986) | ($4,106) | ($4,229) | ($4,356) | ($4,486) | ($4,621) | ($4,760) |
| 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 | $11,753 | $12,106 | $12,469 | $12,843 | $13,228 | $13,625 | $14,034 | $14,455 | $14,888 | $15,335 |
| - Mortgage Payments | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) | ($8,898) |
| = Cash Flow | $2,855 | $3,208 | $3,571 | $3,945 | $4,330 | $4,727 | $5,136 | $5,557 | $5,990 | $6,437 |
| + Principal Reduction | $1,519 | $1,612 | $1,712 | $1,817 | $1,929 | $2,048 | $2,175 | $2,309 | $2,451 | $2,603 |
| + Appreciation | $9,894 | $10,488 | $11,117 | $11,784 | $12,491 | $13,240 | $14,035 | $14,877 | $15,770 | $16,716 |
| = Gross Equity Income | $14,268 | $15,308 | $16,400 | $17,546 | $18,751 | $20,016 | $21,345 | $22,743 | $24,211 | $25,755 |
| Capitalization Rate | 6.7% | 6.5% | 6.3% | 6.2% | 6.0% | 5.8% | 5.7% | 5.5% | 5.3% | 5.2% |
| Cash on Cash Return | 6.2% | 6.9% | 7.7% | 8.5% | 9.4% | 10.2% | 11.1% | 12.0% | 13.0% | 13.9% |
| Return on Equity | 27.1% | 23.6% | 21.1% | 19.2% | 17.8% | 16.6% | 15.6% | 14.7% | 14.0% | 13.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $174,794 | $185,282 | $196,399 | $208,182 | $220,673 | $233,914 | $247,949 | $262,826 | $278,595 | $295,311 |
| - Loan Balance | ($122,156) | ($120,544) | ($118,832) | ($117,015) | ($115,085) | ($113,037) | ($110,862) | ($108,553) | ($106,102) | ($103,499) |
| = Equity | $52,638 | $64,738 | $77,566 | $91,168 | $105,588 | $120,877 | $137,087 | $154,273 | $172,494 | $191,812 |
| 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 | $35,158 | $46,210 | $57,927 | $70,349 | $83,521 | $97,486 | $112,292 | $127,990 | $144,634 | $162,281 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $52,638 | $64,738 | $77,566 | $91,168 | $105,588 | $120,877 | $137,087 | $154,273 | $172,494 | $191,812 |
| - Closing Costs | ($12,236) | ($12,970) | ($13,748) | ($14,573) | ($15,447) | ($16,374) | ($17,356) | ($18,398) | ($19,502) | ($20,672) |
| = Proceeds After Sale | $40,402 | $51,768 | $63,819 | $76,595 | $90,141 | $104,503 | $119,730 | $135,875 | $152,992 | $171,140 |
| + Cumulative Cash Flow | $2,855 | $6,063 | $9,634 | $13,579 | $17,909 | $22,636 | $27,772 | $33,329 | $39,319 | $45,756 |
| - Approximate Cash Invested | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) | ($46,172) |
| = Net Profit | ($2,915) | $11,659 | $27,280 | $44,002 | $61,878 | $80,967 | $101,330 | $123,031 | $146,139 | $170,724 |
| Internal Rate of Return | -6.3% | 12.3% | 17.6% | 19.5% | 20.2% | 20.4% | 20.2% | 20.0% | 19.7% | 19.4% |
| Return on Investment | -6.3% | 25.3% | 59.1% | 95.3% | 134.0% | 175.4% | 219.5% | 266.5% | 316.5% | 369.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.