Fully Leased Duplex
Millington, TN 38053
2bd • 2ba • Built: 1952 • Remodeled: 2017
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $15,600 | $16,068 | $16,550 | $17,047 | $17,558 | $18,085 | $18,627 | $19,186 | $19,762 | $20,354 |
| Vacancy Losses | ($1,248) | ($1,285) | ($1,324) | ($1,364) | ($1,405) | ($1,447) | ($1,490) | ($1,535) | ($1,581) | ($1,628) |
| Operating Income | $14,352 | $14,783 | $15,226 | $15,683 | $16,153 | $16,638 | $17,137 | $17,651 | $18,181 | $18,726 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,763) | ($1,816) | ($1,870) | ($1,926) | ($1,984) | ($2,043) | ($2,105) | ($2,168) | ($2,233) | ($2,300) |
| Insurance | ($853) | ($879) | ($905) | ($933) | ($960) | ($989) | ($1,019) | ($1,050) | ($1,081) | ($1,113) |
| Management Fees | ($1,148) | ($1,183) | ($1,218) | ($1,255) | ($1,292) | ($1,331) | ($1,371) | ($1,412) | ($1,454) | ($1,498) |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,764) | ($3,877) | ($3,994) | ($4,113) | ($4,237) | ($4,364) | ($4,495) | ($4,630) | ($4,768) | ($4,912) |
| 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 | $10,588 | $10,905 | $11,233 | $11,569 | $11,917 | $12,274 | $12,642 | $13,022 | $13,412 | $13,815 |
| - Mortgage Payments | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) |
| = Cash Flow | $3,039 | $3,356 | $3,684 | $4,021 | $4,368 | $4,725 | $5,093 | $5,473 | $5,863 | $6,266 |
| + Principal Reduction | $1,289 | $1,368 | $1,452 | $1,542 | $1,637 | $1,738 | $1,845 | $1,959 | $2,080 | $2,208 |
| + Appreciation | $8,394 | $8,898 | $9,431 | $9,997 | $10,597 | $11,233 | $11,907 | $12,621 | $13,379 | $14,181 |
| = Gross Equity Income | $12,721 | $13,622 | $14,567 | $15,560 | $16,602 | $17,696 | $18,846 | $20,053 | $21,322 | $22,655 |
| Capitalization Rate | 7.1% | 6.9% | 6.7% | 6.6% | 6.4% | 6.2% | 6.0% | 5.8% | 5.7% | 5.5% |
| Cash on Cash Return | 7.8% | 8.6% | 9.4% | 10.3% | 11.1% | 12.1% | 13.0% | 14.0% | 15.0% | 16.0% |
| Return on Equity | 28.5% | 24.8% | 22.1% | 20.1% | 18.5% | 17.3% | 16.2% | 15.3% | 14.6% | 13.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $148,294 | $157,192 | $166,623 | $176,621 | $187,218 | $198,451 | $210,358 | $222,979 | $236,358 | $250,540 |
| - Loan Balance | ($103,636) | ($102,268) | ($100,816) | ($99,274) | ($97,637) | ($95,899) | ($94,054) | ($92,095) | ($90,015) | ($87,807) |
| = Equity | $44,658 | $54,923 | $65,807 | $77,346 | $89,581 | $102,552 | $116,304 | $130,884 | $146,343 | $162,733 |
| 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 | $29,828 | $39,204 | $49,145 | $59,684 | $70,859 | $82,707 | $95,268 | $108,586 | $122,707 | $137,679 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $44,658 | $54,923 | $65,807 | $77,346 | $89,581 | $102,552 | $116,304 | $130,884 | $146,343 | $162,733 |
| - Closing Costs | ($10,381) | ($11,003) | ($11,664) | ($12,363) | ($13,105) | ($13,892) | ($14,725) | ($15,609) | ($16,545) | ($17,538) |
| = Proceeds After Sale | $34,277 | $43,920 | $54,143 | $64,983 | $76,475 | $88,660 | $101,579 | $115,276 | $129,798 | $145,195 |
| + Cumulative Cash Flow | $3,039 | $6,395 | $10,079 | $14,099 | $18,467 | $23,192 | $28,285 | $33,758 | $39,621 | $45,887 |
| - Approximate Cash Invested | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) | ($39,172) |
| = Net Profit | ($1,856) | $11,143 | $25,050 | $39,910 | $55,770 | $72,680 | $90,692 | $109,862 | $130,247 | $151,909 |
| Internal Rate of Return | -4.7% | 13.8% | 19.1% | 20.9% | 21.5% | 21.6% | 21.5% | 21.2% | 20.9% | 20.5% |
| Return on Investment | -4.7% | 28.4% | 63.9% | 101.9% | 142.4% | 185.5% | 231.5% | 280.5% | 332.5% | 387.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.