Leased at 1200 per Month
Memphis, TN 38141
3bd • 2ba • Built: 1988 • Remodeled: 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 | $14,400 | $14,832 | $15,277 | $15,735 | $16,207 | $16,694 | $17,194 | $17,710 | $18,241 | $18,789 |
| Vacancy Losses | ($1,152) | ($1,187) | ($1,222) | ($1,259) | ($1,297) | ($1,335) | ($1,376) | ($1,417) | ($1,459) | ($1,503) |
| Operating Income | $13,248 | $13,645 | $14,055 | $14,476 | $14,911 | $15,358 | $15,819 | $16,293 | $16,782 | $17,286 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,442) | ($2,515) | ($2,591) | ($2,669) | ($2,749) | ($2,831) | ($2,916) | ($3,003) | ($3,094) | ($3,186) |
| Insurance | ($844) | ($870) | ($896) | ($923) | ($950) | ($979) | ($1,008) | ($1,038) | ($1,070) | ($1,102) |
| 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 | ($1,152) | ($1,187) | ($1,222) | ($1,259) | ($1,297) | ($1,335) | ($1,376) | ($1,417) | ($1,459) | ($1,503) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,438) | ($4,572) | ($4,709) | ($4,850) | ($4,996) | ($5,145) | ($5,300) | ($5,459) | ($5,623) | ($5,791) |
| 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 | $8,810 | $9,074 | $9,346 | $9,626 | $9,915 | $10,213 | $10,519 | $10,835 | $11,160 | $11,494 |
| - Mortgage Payments | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) | ($7,009) |
| = Cash Flow | $1,800 | $2,064 | $2,337 | $2,617 | $2,906 | $3,203 | $3,510 | $3,825 | $4,150 | $4,485 |
| + Principal Reduction | $1,196 | $1,270 | $1,349 | $1,432 | $1,520 | $1,614 | $1,713 | $1,819 | $1,931 | $2,050 |
| + Appreciation | $7,794 | $8,262 | $8,757 | $9,283 | $9,840 | $10,430 | $11,056 | $11,719 | $12,422 | $13,168 |
| = Gross Equity Income | $10,791 | $11,596 | $12,443 | $13,332 | $14,266 | $15,247 | $16,279 | $17,363 | $18,504 | $19,703 |
| Capitalization Rate | 6.4% | 6.2% | 6.0% | 5.9% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% |
| Cash on Cash Return | 4.9% | 5.7% | 6.4% | 7.2% | 8.0% | 8.8% | 9.6% | 10.5% | 11.4% | 12.3% |
| Return on Equity | 26.0% | 22.7% | 20.4% | 18.6% | 17.2% | 16.0% | 15.1% | 14.3% | 13.6% | 13.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $137,694 | $145,956 | $154,713 | $163,996 | $173,836 | $184,266 | $195,322 | $207,041 | $219,463 | $232,631 |
| - Loan Balance | ($96,229) | ($94,959) | ($93,610) | ($92,178) | ($90,658) | ($89,045) | ($87,331) | ($85,512) | ($83,581) | ($81,531) |
| = Equity | $41,465 | $50,997 | $61,103 | $71,817 | $83,177 | $95,221 | $107,990 | $121,528 | $135,882 | $151,100 |
| 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 | $27,696 | $36,402 | $45,632 | $55,418 | $65,794 | $76,794 | $88,458 | $100,824 | $113,936 | $127,837 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $41,465 | $50,997 | $61,103 | $71,817 | $83,177 | $95,221 | $107,990 | $121,528 | $135,882 | $151,100 |
| - Closing Costs | ($9,639) | ($10,217) | ($10,830) | ($11,480) | ($12,168) | ($12,899) | ($13,673) | ($14,493) | ($15,362) | ($16,284) |
| = Proceeds After Sale | $31,827 | $40,780 | $50,273 | $60,338 | $71,009 | $82,322 | $94,318 | $107,036 | $120,519 | $134,816 |
| + Cumulative Cash Flow | $1,800 | $3,865 | $6,201 | $8,819 | $11,724 | $14,928 | $18,437 | $22,263 | $26,413 | $30,898 |
| - Approximate Cash Invested | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) | ($36,372) |
| = Net Profit | ($2,745) | $8,273 | $20,102 | $32,784 | $46,361 | $60,878 | $76,383 | $92,926 | $110,561 | $129,342 |
| Internal Rate of Return | -7.5% | 11.0% | 16.5% | 18.5% | 19.2% | 19.4% | 19.3% | 19.1% | 18.9% | 18.6% |
| Return on Investment | -7.5% | 22.7% | 55.3% | 90.1% | 127.5% | 167.4% | 210.0% | 255.5% | 304.0% | 355.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.