Brick property!
Memphis, TN 38114
3bd • 1ba • Built: 1950
| 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 | ($804) | ($828) | ($853) | ($879) | ($905) | ($932) | ($960) | ($989) | ($1,019) | ($1,049) |
| Insurance | ($575) | ($592) | ($609) | ($628) | ($647) | ($666) | ($686) | ($707) | ($728) | ($750) |
| 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 | ($2,430) | ($2,503) | ($2,578) | ($2,655) | ($2,735) | ($2,817) | ($2,902) | ($2,989) | ($3,078) | ($3,171) |
| 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 | $9,659 | $9,949 | $10,247 | $10,554 | $10,871 | $11,197 | $11,533 | $11,879 | $12,235 | $12,603 |
| - Mortgage Payments | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) | ($6,200) |
| = Cash Flow | $3,459 | $3,749 | $4,047 | $4,355 | $4,671 | $4,997 | $5,333 | $5,679 | $6,036 | $6,403 |
| + Principal Reduction | $1,058 | $1,123 | $1,193 | $1,266 | $1,344 | $1,427 | $1,515 | $1,609 | $1,708 | $1,813 |
| + Appreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| = Gross Equity Income | $4,517 | $4,872 | $5,240 | $5,621 | $6,016 | $6,425 | $6,849 | $7,288 | $7,744 | $8,216 |
| Capitalization Rate | 8.4% | 8.7% | 8.9% | 9.2% | 9.5% | 9.7% | 10.0% | 10.3% | 10.6% | 11.0% |
| Cash on Cash Return | 12.0% | 13.1% | 14.1% | 15.2% | 16.3% | 17.4% | 18.6% | 19.8% | 21.0% | 22.3% |
| Return on Equity | 15.2% | 15.8% | 16.3% | 16.8% | 17.3% | 17.8% | 18.2% | 18.6% | 18.9% | 19.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 | $114,900 |
| - Loan Balance | ($85,117) | ($83,993) | ($82,801) | ($81,534) | ($80,190) | ($78,762) | ($77,247) | ($75,638) | ($73,930) | ($72,117) |
| = Equity | $29,783 | $30,907 | $32,099 | $33,366 | $34,710 | $36,138 | $37,653 | $39,262 | $40,970 | $42,783 |
| Loan-to-Value Ratio | 74.1% | 73.1% | 72.1% | 71.0% | 69.8% | 68.5% | 67.2% | 65.8% | 64.3% | 62.8% |
| Potential Cash-Out Refi | $18,293 | $19,417 | $20,609 | $21,876 | $23,220 | $24,648 | $26,163 | $27,772 | $29,480 | $31,293 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $29,783 | $30,907 | $32,099 | $33,366 | $34,710 | $36,138 | $37,653 | $39,262 | $40,970 | $42,783 |
| - Closing Costs | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) | ($8,043) |
| = Proceeds After Sale | $21,740 | $22,864 | $24,056 | $25,323 | $26,667 | $28,095 | $29,610 | $31,219 | $32,927 | $34,740 |
| + Cumulative Cash Flow | $3,459 | $7,208 | $11,255 | $15,609 | $20,280 | $25,278 | $30,611 | $36,290 | $42,325 | $48,728 |
| - Approximate Cash Invested | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) | ($28,725) |
| = Net Profit | ($3,526) | $1,346 | $6,586 | $12,207 | $18,222 | $24,647 | $31,496 | $38,784 | $46,527 | $54,743 |
| Internal Rate of Return | -12.3% | 2.5% | 8.0% | 10.9% | 12.8% | 14.0% | 14.9% | 15.6% | 16.1% | 16.5% |
| Return on Investment | -12.3% | 4.7% | 22.9% | 42.5% | 63.4% | 85.8% | 109.6% | 135.0% | 162.0% | 190.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.