Newly Renovated
Memphis, TN 38111
3bd • 1.5ba • Built: 1954 • Remodeled: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $13,800 | $14,214 | $14,640 | $15,080 | $15,532 | $15,998 | $16,478 | $16,972 | $17,481 | $18,006 |
| Vacancy Losses | ($1,104) | ($1,137) | ($1,171) | ($1,206) | ($1,243) | ($1,280) | ($1,318) | ($1,358) | ($1,399) | ($1,440) |
| Operating Income | $12,696 | $13,077 | $13,469 | $13,873 | $14,289 | $14,718 | $15,160 | $15,614 | $16,083 | $16,565 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($644) | ($663) | ($683) | ($703) | ($724) | ($746) | ($768) | ($791) | ($815) | ($840) |
| Insurance | ($853) | ($879) | ($905) | ($933) | ($960) | ($989) | ($1,019) | ($1,050) | ($1,081) | ($1,113) |
| Management Fees | ($1,016) | ($1,046) | ($1,078) | ($1,110) | ($1,143) | ($1,177) | ($1,213) | ($1,249) | ($1,287) | ($1,325) |
| 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 | ($1,104) | ($1,137) | ($1,171) | ($1,206) | ($1,243) | ($1,280) | ($1,318) | ($1,358) | ($1,399) | ($1,440) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,617) | ($3,725) | ($3,837) | ($3,952) | ($4,071) | ($4,193) | ($4,318) | ($4,448) | ($4,581) | ($4,719) |
| 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 | $9,079 | $9,352 | $9,632 | $9,921 | $10,219 | $10,526 | $10,841 | $11,167 | $11,501 | $11,847 |
| - Mortgage Payments | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) |
| = Cash Flow | $1,530 | $1,803 | $2,083 | $2,372 | $2,670 | $2,977 | $3,292 | $3,618 | $3,953 | $4,298 |
| + 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 | $11,213 | $12,068 | $12,967 | $13,912 | $14,904 | $15,948 | $17,045 | $18,198 | $19,411 | $20,687 |
| Capitalization Rate | 6.1% | 5.9% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% |
| Cash on Cash Return | 3.9% | 4.6% | 5.3% | 6.1% | 6.8% | 7.6% | 8.4% | 9.2% | 10.1% | 11.0% |
| Return on Equity | 25.1% | 22.0% | 19.7% | 18.0% | 16.6% | 15.6% | 14.7% | 13.9% | 13.3% | 12.7% |
| 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 | $1,530 | $3,333 | $5,417 | $7,789 | $10,459 | $13,435 | $16,728 | $20,345 | $24,298 | $28,595 |
| - 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 | ($3,365) | $8,081 | $20,388 | $33,600 | $47,762 | $62,924 | $79,135 | $96,449 | $114,924 | $134,618 |
| Internal Rate of Return | -8.6% | 10.0% | 15.5% | 17.5% | 18.3% | 18.6% | 18.5% | 18.4% | 18.1% | 17.9% |
| Return on Investment | -8.6% | 20.6% | 52.0% | 85.8% | 121.9% | 160.6% | 202.0% | 246.2% | 293.4% | 343.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.