Nice Cashflow!
Memphis, TN 38109
3bd • 1ba • Built: 1953
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $13,140 | $13,534 | $13,940 | $14,358 | $14,789 | $15,233 | $15,690 | $16,161 | $16,645 | $17,145 |
| Vacancy Losses | ($1,051) | ($1,083) | ($1,115) | ($1,149) | ($1,183) | ($1,219) | ($1,255) | ($1,293) | ($1,332) | ($1,372) |
| Operating Income | $12,089 | $12,451 | $12,825 | $13,210 | $13,606 | $14,014 | $14,435 | $14,868 | $15,314 | $15,773 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,034) | ($1,065) | ($1,097) | ($1,130) | ($1,164) | ($1,199) | ($1,235) | ($1,272) | ($1,310) | ($1,349) |
| Insurance | ($747) | ($769) | ($792) | ($816) | ($841) | ($866) | ($892) | ($919) | ($946) | ($974) |
| 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 | ($1,051) | ($1,083) | ($1,115) | ($1,149) | ($1,183) | ($1,219) | ($1,255) | ($1,293) | ($1,332) | ($1,372) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,832) | ($2,917) | ($3,005) | ($3,095) | ($3,188) | ($3,283) | ($3,382) | ($3,483) | ($3,588) | ($3,695) |
| 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 | $9,257 | $9,534 | $9,820 | $10,115 | $10,418 | $10,731 | $11,053 | $11,385 | $11,726 | $12,078 |
| - Mortgage Payments | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) | ($6,250) |
| = Cash Flow | $3,007 | $3,284 | $3,570 | $3,865 | $4,168 | $4,481 | $4,803 | $5,135 | $5,476 | $5,828 |
| + Principal Reduction | $1,044 | $1,109 | $1,178 | $1,252 | $1,330 | $1,413 | $1,501 | $1,595 | $1,695 | $1,800 |
| + Appreciation | $6,894 | $7,308 | $7,746 | $8,211 | $8,704 | $9,226 | $9,779 | $10,366 | $10,988 | $11,647 |
| = Gross Equity Income | $10,944 | $11,701 | $12,495 | $13,328 | $14,202 | $15,120 | $16,083 | $17,095 | $18,159 | $19,276 |
| Capitalization Rate | 7.6% | 7.4% | 7.2% | 7.0% | 6.8% | 6.6% | 6.4% | 6.2% | 6.0% | 5.9% |
| Cash on Cash Return | 8.3% | 9.1% | 9.9% | 10.7% | 11.5% | 12.4% | 13.3% | 14.2% | 15.1% | 16.1% |
| Return on Equity | 29.9% | 26.0% | 23.1% | 21.0% | 19.3% | 18.0% | 16.9% | 15.9% | 15.1% | 14.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $121,794 | $129,102 | $136,848 | $145,059 | $153,762 | $162,988 | $172,767 | $183,133 | $194,121 | $205,768 |
| - Loan Balance | ($85,131) | ($84,023) | ($82,845) | ($81,593) | ($80,263) | ($78,850) | ($77,349) | ($75,754) | ($74,060) | ($72,259) |
| = Equity | $36,663 | $45,079 | $54,003 | $63,466 | $73,499 | $84,138 | $95,418 | $107,379 | $120,061 | $133,509 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.2% | 48.4% | 44.8% | 41.4% | 38.2% | 35.1% |
| Potential Cash-Out Refi | $24,483 | $32,169 | $40,318 | $48,960 | $58,123 | $67,839 | $78,141 | $89,066 | $100,649 | $112,932 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $36,663 | $45,079 | $54,003 | $63,466 | $73,499 | $84,138 | $95,418 | $107,379 | $120,061 | $133,509 |
| - Closing Costs | ($8,526) | ($9,037) | ($9,579) | ($10,154) | ($10,763) | ($11,409) | ($12,094) | ($12,819) | ($13,588) | ($14,404) |
| = Proceeds After Sale | $28,137 | $36,042 | $44,424 | $53,311 | $62,736 | $72,728 | $83,324 | $94,560 | $106,473 | $119,105 |
| + Cumulative Cash Flow | $3,007 | $6,291 | $9,861 | $13,727 | $17,895 | $22,376 | $27,179 | $32,314 | $37,790 | $43,618 |
| - Approximate Cash Invested | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) | ($36,194) |
| = Net Profit | ($5,050) | $6,139 | $18,092 | $30,845 | $44,437 | $58,911 | $74,310 | $90,680 | $108,069 | $126,529 |
| Internal Rate of Return | -14.0% | 8.5% | 15.5% | 18.3% | 19.5% | 20.0% | 20.2% | 20.1% | 20.0% | 19.8% |
| Return on Investment | -14.0% | 17.0% | 50.0% | 85.2% | 122.8% | 162.8% | 205.3% | 250.5% | 298.6% | 349.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.