Currently Occupied in Great Neighborhood
Scottsdale, AZ 85257
3bd • 2ba • Built: 1960
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $51,600 | $53,148 | $54,742 | $56,385 | $58,076 | $59,819 | $61,613 | $63,461 | $65,365 | $67,326 |
| Vacancy Losses | ($4,128) | ($4,252) | ($4,379) | ($4,511) | ($4,646) | ($4,785) | ($4,929) | ($5,077) | ($5,229) | ($5,386) |
| Operating Income | $47,472 | $48,896 | $50,363 | $51,874 | $53,430 | $55,033 | $56,684 | $58,385 | $60,136 | $61,940 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,099) | ($2,162) | ($2,227) | ($2,294) | ($2,363) | ($2,434) | ($2,507) | ($2,582) | ($2,659) | ($2,739) |
| Insurance | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,048) | ($2,109) | ($2,173) | ($2,238) | ($2,305) | ($2,374) |
| 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 | ($2,580) | ($2,657) | ($2,737) | ($2,819) | ($2,904) | ($2,991) | ($3,081) | ($3,173) | ($3,268) | ($3,366) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,499) | ($6,694) | ($6,895) | ($7,102) | ($7,315) | ($7,534) | ($7,760) | ($7,993) | ($8,233) | ($8,480) |
| 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 | $40,973 | $42,202 | $43,468 | $44,772 | $46,116 | $47,499 | $48,924 | $50,392 | $51,904 | $53,461 |
| - Mortgage Payments | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) | ($34,115) |
| = Cash Flow | $6,858 | $8,087 | $9,353 | $10,657 | $12,000 | $13,384 | $14,809 | $16,276 | $17,788 | $19,345 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $41,988 | $44,507 | $47,178 | $50,008 | $53,009 | $56,189 | $59,561 | $63,134 | $66,922 | $70,938 |
| = Gross Equity Income | $48,846 | $52,594 | $56,531 | $60,666 | $65,009 | $69,573 | $74,370 | $79,411 | $84,711 | $90,283 |
| Capitalization Rate | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.3% |
| Cash on Cash Return | 3.3% | 3.9% | 4.5% | 5.2% | 5.8% | 6.5% | 7.2% | 7.9% | 8.6% | 9.4% |
| Return on Equity | 22.5% | 20.1% | 18.3% | 16.9% | 15.8% | 14.9% | 14.1% | 13.4% | 12.9% | 12.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $741,788 | $786,295 | $833,473 | $883,481 | $936,490 | $992,680 | $1,052,240 | $1,115,375 | $1,182,297 | $1,253,235 |
| - Loan Balance | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) | ($524,850) |
| = Equity | $216,938 | $261,445 | $308,623 | $358,631 | $411,640 | $467,830 | $527,390 | $590,525 | $657,447 | $728,385 |
| Loan-to-Value Ratio | 70.8% | 66.7% | 63.0% | 59.4% | 56.0% | 52.9% | 49.9% | 47.1% | 44.4% | 41.9% |
| Potential Cash-Out Refi | $142,759 | $182,816 | $225,276 | $270,283 | $317,991 | $368,562 | $422,166 | $478,987 | $539,218 | $603,062 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $216,938 | $261,445 | $308,623 | $358,631 | $411,640 | $467,830 | $527,390 | $590,525 | $657,447 | $728,385 |
| - Closing Costs | ($51,925) | ($55,041) | ($58,343) | ($61,844) | ($65,554) | ($69,488) | ($73,657) | ($78,076) | ($82,761) | ($87,726) |
| = Proceeds After Sale | $165,013 | $206,405 | $250,280 | $296,788 | $346,086 | $398,342 | $453,734 | $512,449 | $574,687 | $640,659 |
| + Cumulative Cash Flow | $6,858 | $14,945 | $24,298 | $34,955 | $46,955 | $60,339 | $75,148 | $91,425 | $109,213 | $128,558 |
| - Approximate Cash Invested | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) | ($206,441) |
| = Net Profit | ($34,570) | $14,908 | $68,137 | $125,302 | $186,600 | $252,240 | $322,441 | $397,432 | $477,458 | $562,776 |
| Internal Rate of Return | -16.7% | 3.6% | 10.3% | 13.1% | 14.5% | 15.2% | 15.5% | 15.6% | 15.6% | 15.5% |
| Return on Investment | -16.7% | 7.2% | 33.0% | 60.7% | 90.4% | 122.2% | 156.2% | 192.5% | 231.3% | 272.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.