Class A Renovated Property
Memphis, TN 38117
4bd • 2ba • Built: 1955
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $20,340 | $20,950 | $21,579 | $22,226 | $22,893 | $23,580 | $24,287 | $25,016 | $25,766 | $26,539 |
| Vacancy Losses | ($1,627) | ($1,676) | ($1,726) | ($1,778) | ($1,831) | ($1,886) | ($1,943) | ($2,001) | ($2,061) | ($2,123) |
| Operating Income | $18,713 | $19,274 | $19,852 | $20,448 | $21,061 | $21,693 | $22,344 | $23,014 | $23,705 | $24,416 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,199) | ($2,265) | ($2,333) | ($2,403) | ($2,475) | ($2,549) | ($2,626) | ($2,704) | ($2,786) | ($2,869) |
| Insurance | ($800) | ($824) | ($848) | ($874) | ($900) | ($927) | ($955) | ($983) | ($1,013) | ($1,043) |
| 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 | ($1,627) | ($1,676) | ($1,726) | ($1,778) | ($1,831) | ($1,886) | ($1,943) | ($2,001) | ($2,061) | ($2,123) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,626) | ($4,764) | ($4,907) | ($5,055) | ($5,206) | ($5,362) | ($5,523) | ($5,689) | ($5,860) | ($6,035) |
| 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 | $14,087 | $14,510 | $14,945 | $15,393 | $15,855 | $16,331 | $16,821 | $17,325 | $17,845 | $18,380 |
| - Mortgage Payments | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) | ($10,787) |
| = Cash Flow | $3,301 | $3,723 | $4,158 | $4,607 | $5,069 | $5,544 | $6,034 | $6,539 | $7,059 | $7,594 |
| + Principal Reduction | $1,841 | $1,955 | $2,075 | $2,203 | $2,339 | $2,483 | $2,637 | $2,799 | $2,972 | $3,155 |
| + Appreciation | $11,994 | $12,714 | $13,476 | $14,285 | $15,142 | $16,051 | $17,014 | $18,035 | $19,117 | $20,264 |
| = Gross Equity Income | $17,136 | $18,391 | $19,710 | $21,095 | $22,550 | $24,078 | $25,684 | $27,373 | $29,147 | $31,013 |
| Capitalization Rate | 6.6% | 6.5% | 6.3% | 6.1% | 5.9% | 5.8% | 5.6% | 5.4% | 5.3% | 5.1% |
| Cash on Cash Return | 5.9% | 6.7% | 7.4% | 8.2% | 9.1% | 9.9% | 10.8% | 11.7% | 12.6% | 13.6% |
| Return on Equity | 26.9% | 23.4% | 21.0% | 19.1% | 17.6% | 16.4% | 15.5% | 14.6% | 13.9% | 13.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $211,894 | $224,608 | $238,084 | $252,369 | $267,511 | $283,562 | $300,576 | $318,610 | $337,727 | $357,990 |
| - Loan Balance | ($148,084) | ($146,129) | ($144,054) | ($141,851) | ($139,512) | ($137,028) | ($134,391) | ($131,592) | ($128,620) | ($125,465) |
| = Equity | $63,810 | $78,478 | $94,030 | $110,518 | $128,000 | $146,534 | $166,184 | $187,018 | $209,106 | $232,525 |
| 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 | $42,621 | $56,018 | $70,222 | $85,282 | $101,249 | $118,178 | $136,127 | $155,157 | $175,334 | $196,726 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $63,810 | $78,478 | $94,030 | $110,518 | $128,000 | $146,534 | $166,184 | $187,018 | $209,106 | $232,525 |
| - Closing Costs | ($14,833) | ($15,723) | ($16,666) | ($17,666) | ($18,726) | ($19,849) | ($21,040) | ($22,303) | ($23,641) | ($25,059) |
| = Proceeds After Sale | $48,978 | $62,756 | $77,364 | $92,853 | $109,274 | $126,685 | $145,144 | $164,715 | $185,466 | $207,466 |
| + Cumulative Cash Flow | $3,301 | $7,024 | $11,182 | $15,789 | $20,858 | $26,402 | $32,436 | $38,975 | $46,033 | $53,627 |
| - Approximate Cash Invested | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) | ($55,972) |
| = Net Profit | ($3,694) | $13,808 | $32,574 | $52,670 | $74,159 | $97,114 | $121,608 | $147,718 | $175,527 | $205,121 |
| Internal Rate of Return | -6.6% | 12.0% | 17.3% | 19.3% | 20.0% | 20.1% | 20.0% | 19.8% | 19.5% | 19.2% |
| Return on Investment | -6.6% | 24.7% | 58.2% | 94.1% | 132.5% | 173.5% | 217.3% | 263.9% | 313.6% | 366.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.