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 | ($1,315) | ($1,355) | ($1,395) | ($1,437) | ($1,480) | ($1,525) | ($1,570) | ($1,617) | ($1,666) | ($1,716) |
| Insurance | ($839) | ($865) | ($891) | ($917) | ($945) | ($973) | ($1,002) | ($1,032) | ($1,063) | ($1,095) |
| 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 | ($1,104) | ($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 | ($3,258) | ($3,356) | ($3,457) | ($3,561) | ($3,667) | ($3,777) | ($3,891) | ($4,007) | ($4,128) | ($4,252) |
| 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 | $9,438 | $9,721 | $10,012 | $10,313 | $10,622 | $10,941 | $11,269 | $11,607 | $11,955 | $12,314 |
| - Mortgage Payments | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) | ($7,549) |
| = Cash Flow | $1,889 | $2,172 | $2,463 | $2,764 | $3,073 | $3,392 | $3,720 | $4,058 | $4,406 | $4,765 |
| + 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 | $11,571 | $12,437 | $13,347 | $14,303 | $15,307 | $16,363 | $17,472 | $18,638 | $19,865 | $21,154 |
| Capitalization Rate | 6.4% | 6.2% | 6.0% | 5.8% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% |
| Cash on Cash Return | 4.8% | 5.5% | 6.3% | 7.1% | 7.8% | 8.7% | 9.5% | 10.4% | 11.2% | 12.2% |
| Return on Equity | 25.9% | 22.6% | 20.3% | 18.5% | 17.1% | 16.0% | 15.0% | 14.2% | 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 | $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 | $1,889 | $4,060 | $6,524 | $9,287 | $12,360 | $15,752 | $19,472 | $23,530 | $27,936 | $32,701 |
| - 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 | ($3,006) | $8,808 | $21,495 | $35,098 | $49,664 | $65,240 | $81,879 | $99,634 | $118,562 | $138,724 |
| Internal Rate of Return | -7.7% | 10.9% | 16.3% | 18.3% | 19.1% | 19.3% | 19.2% | 19.0% | 18.8% | 18.5% |
| Return on Investment | -7.7% | 22.5% | 54.9% | 89.6% | 126.8% | 166.5% | 209.0% | 254.3% | 302.7% | 354.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.