Renovated 3 Bed/ 2 Bath Home
Memphis, TN 38141
3bd • 2ba • Built: 1993 • Remodeled: 2026
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $15,540 | $16,006 | $16,486 | $16,981 | $17,490 | $18,015 | $18,556 | $19,112 | $19,686 | $20,276 |
| Vacancy Losses | ($1,243) | ($1,280) | ($1,319) | ($1,358) | ($1,399) | ($1,441) | ($1,484) | ($1,529) | ($1,575) | ($1,622) |
| Operating Income | $14,297 | $14,726 | $15,167 | $15,622 | $16,091 | $16,574 | $17,071 | $17,583 | $18,111 | $18,654 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,063) | ($2,125) | ($2,188) | ($2,254) | ($2,322) | ($2,391) | ($2,463) | ($2,537) | ($2,613) | ($2,691) |
| Insurance | ($847) | ($873) | ($899) | ($926) | ($954) | ($982) | ($1,012) | ($1,042) | ($1,074) | ($1,106) |
| 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 | ($1,243) | ($1,280) | ($1,319) | ($1,358) | ($1,399) | ($1,441) | ($1,484) | ($1,529) | ($1,575) | ($1,622) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,153) | ($4,278) | ($4,406) | ($4,539) | ($4,675) | ($4,815) | ($4,959) | ($5,108) | ($5,261) | ($5,419) |
| 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 | $10,143 | $10,448 | $10,761 | $11,084 | $11,417 | $11,759 | $12,112 | $12,475 | $12,849 | $13,235 |
| - Mortgage Payments | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) | ($8,628) |
| = Cash Flow | $1,515 | $1,820 | $2,133 | $2,456 | $2,788 | $3,131 | $3,484 | $3,847 | $4,221 | $4,607 |
| + Principal Reduction | $1,473 | $1,564 | $1,660 | $1,762 | $1,871 | $1,986 | $2,109 | $2,239 | $2,377 | $2,524 |
| + Appreciation | $9,594 | $10,170 | $10,780 | $11,427 | $12,112 | $12,839 | $13,609 | $14,426 | $15,291 | $16,209 |
| = Gross Equity Income | $12,582 | $13,553 | $14,573 | $15,645 | $16,772 | $17,956 | $19,202 | $20,512 | $21,890 | $23,339 |
| Capitalization Rate | 6.0% | 5.8% | 5.7% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% |
| Cash on Cash Return | 3.4% | 4.1% | 4.8% | 5.5% | 6.2% | 7.0% | 7.8% | 8.6% | 9.4% | 10.3% |
| Return on Equity | 24.7% | 21.6% | 19.4% | 17.7% | 16.4% | 15.3% | 14.4% | 13.7% | 13.1% | 12.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $169,494 | $179,664 | $190,443 | $201,870 | $213,982 | $226,821 | $240,430 | $254,856 | $270,148 | $286,357 |
| - Loan Balance | ($118,452) | ($116,889) | ($115,229) | ($113,467) | ($111,596) | ($109,609) | ($107,500) | ($105,261) | ($102,884) | ($100,360) |
| = Equity | $51,042 | $62,775 | $75,215 | $88,404 | $102,387 | $117,212 | $132,930 | $149,595 | $167,264 | $185,996 |
| 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 | $34,092 | $44,808 | $56,170 | $68,216 | $80,989 | $94,530 | $108,887 | $124,110 | $140,249 | $157,361 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $51,042 | $62,775 | $75,215 | $88,404 | $102,387 | $117,212 | $132,930 | $149,595 | $167,264 | $185,996 |
| - Closing Costs | ($11,865) | ($12,576) | ($13,331) | ($14,131) | ($14,979) | ($15,877) | ($16,830) | ($17,840) | ($18,910) | ($20,045) |
| = Proceeds After Sale | $39,177 | $50,198 | $61,884 | $74,273 | $87,408 | $101,335 | $116,100 | $131,755 | $148,353 | $165,951 |
| + Cumulative Cash Flow | $1,515 | $3,335 | $5,468 | $7,924 | $10,712 | $13,843 | $17,327 | $21,174 | $25,395 | $30,002 |
| - Approximate Cash Invested | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) | ($44,772) |
| = Net Profit | ($4,080) | $8,761 | $22,579 | $37,424 | $53,348 | $70,406 | $88,655 | $108,157 | $128,976 | $151,181 |
| Internal Rate of Return | -9.1% | 9.5% | 15.0% | 17.1% | 17.9% | 18.1% | 18.1% | 18.0% | 17.8% | 17.5% |
| Return on Investment | -9.1% | 19.6% | 50.4% | 83.6% | 119.2% | 157.3% | 198.0% | 241.6% | 288.1% | 337.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.