Pre Leased Duplex
Little Rock , AR 72205
3bd • 2ba • Built: 2021
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $37,080 | $38,192 | $39,338 | $40,518 | $41,734 | $42,986 | $44,275 | $45,604 | $46,972 | $48,381 |
| Vacancy Losses | ($2,966) | ($3,055) | ($3,147) | ($3,241) | ($3,339) | ($3,439) | ($3,542) | ($3,648) | ($3,758) | ($3,870) |
| Operating Income | $34,114 | $35,137 | $36,191 | $37,277 | $38,395 | $39,547 | $40,733 | $41,955 | $43,214 | $44,511 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,279) | ($3,378) | ($3,479) | ($3,583) | ($3,691) | ($3,801) | ($3,916) | ($4,033) | ($4,154) | ($4,279) |
| Insurance | ($1,600) | ($1,648) | ($1,697) | ($1,748) | ($1,800) | ($1,854) | ($1,910) | ($1,967) | ($2,026) | ($2,087) |
| 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 | ($1,854) | ($1,910) | ($1,967) | ($2,026) | ($2,087) | ($2,149) | ($2,214) | ($2,280) | ($2,349) | ($2,419) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,733) | ($6,935) | ($7,143) | ($7,357) | ($7,578) | ($7,805) | ($8,039) | ($8,280) | ($8,529) | ($8,785) |
| 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 | $27,381 | $28,202 | $29,048 | $29,920 | $30,817 | $31,742 | $32,694 | $33,675 | $34,685 | $35,726 |
| - Mortgage Payments | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) | ($21,578) |
| = Cash Flow | $5,802 | $6,624 | $7,470 | $8,341 | $9,239 | $10,163 | $11,116 | $12,097 | $13,107 | $14,147 |
| + Principal Reduction | $3,683 | $3,910 | $4,151 | $4,407 | $4,679 | $4,968 | $5,274 | $5,600 | $5,945 | $6,312 |
| + Appreciation | $23,994 | $25,434 | $26,960 | $28,577 | $30,292 | $32,109 | $34,036 | $36,078 | $38,243 | $40,537 |
| = Gross Equity Income | $33,479 | $35,968 | $38,581 | $41,326 | $44,210 | $47,241 | $50,426 | $53,774 | $57,295 | $60,996 |
| Capitalization Rate | 6.5% | 6.3% | 6.1% | 5.9% | 5.8% | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% |
| Cash on Cash Return | 5.0% | 5.7% | 6.4% | 7.2% | 8.0% | 8.8% | 9.6% | 10.4% | 11.3% | 12.2% |
| Return on Equity | 26.2% | 22.9% | 20.5% | 18.7% | 17.3% | 16.1% | 15.2% | 14.4% | 13.7% | 13.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $423,894 | $449,328 | $476,287 | $504,865 | $535,156 | $567,266 | $601,302 | $637,380 | $675,623 | $716,160 |
| - Loan Balance | ($296,242) | ($292,332) | ($288,180) | ($283,773) | ($279,093) | ($274,126) | ($268,851) | ($263,252) | ($257,307) | ($250,995) |
| = Equity | $127,652 | $156,996 | $188,107 | $221,092 | $256,063 | $293,140 | $332,451 | $374,128 | $418,316 | $465,165 |
| 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 | $42,873 | $67,130 | $92,850 | $120,119 | $149,032 | $179,687 | $212,190 | $246,652 | $283,192 | $321,933 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $127,652 | $156,996 | $188,107 | $221,092 | $256,063 | $293,140 | $332,451 | $374,128 | $418,316 | $465,165 |
| - Closing Costs | ($21,195) | ($22,466) | ($23,814) | ($25,243) | ($26,758) | ($28,363) | ($30,065) | ($31,869) | ($33,781) | ($35,808) |
| = Proceeds After Sale | $106,457 | $134,530 | $164,293 | $195,849 | $229,305 | $264,777 | $302,385 | $342,259 | $384,535 | $429,357 |
| + Cumulative Cash Flow | $5,802 | $12,426 | $19,896 | $28,238 | $37,476 | $47,640 | $58,756 | $70,852 | $83,959 | $98,106 |
| - Approximate Cash Invested | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) | ($115,971) |
| = Net Profit | ($3,711) | $30,985 | $68,218 | $108,115 | $150,811 | $196,446 | $245,170 | $297,141 | $352,523 | $411,493 |
| Internal Rate of Return | -3.2% | 12.9% | 17.4% | 19.0% | 19.5% | 19.5% | 19.4% | 19.2% | 18.9% | 18.6% |
| Return on Investment | -3.2% | 26.7% | 58.8% | 93.2% | 130.0% | 169.4% | 211.4% | 256.2% | 304.0% | 354.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.