Occupied - Long Term Tenants
PHOENIX, AZ 85032
7bd • 4ba • Built: 1945
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $49,800 | $51,294 | $52,833 | $54,418 | $56,050 | $57,732 | $59,464 | $61,248 | $63,085 | $64,978 |
| Vacancy Losses | ($3,984) | ($4,104) | ($4,227) | ($4,353) | ($4,484) | ($4,619) | ($4,757) | ($4,900) | ($5,047) | ($5,198) |
| Operating Income | $45,816 | $47,190 | $48,606 | $50,064 | $51,566 | $53,113 | $54,707 | $56,348 | $58,038 | $59,779 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,650) | ($1,700) | ($1,750) | ($1,803) | ($1,857) | ($1,913) | ($1,970) | ($2,029) | ($2,090) | ($2,153) |
| Insurance | ($3,300) | ($3,399) | ($3,501) | ($3,606) | ($3,714) | ($3,826) | ($3,940) | ($4,059) | ($4,180) | ($4,306) |
| 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 | ($2,490) | ($2,565) | ($2,642) | ($2,721) | ($2,803) | ($2,887) | ($2,973) | ($3,062) | ($3,154) | ($3,249) |
| Other | ($6,000) | ($6,180) | ($6,365) | ($6,556) | ($6,753) | ($6,956) | ($7,164) | ($7,379) | ($7,601) | ($7,829) |
| Operating Expenses | ($13,440) | ($13,843) | ($14,258) | ($14,686) | ($15,127) | ($15,581) | ($16,048) | ($16,530) | ($17,025) | ($17,536) |
| 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 | $32,376 | $33,347 | $34,348 | $35,378 | $36,439 | $37,533 | $38,659 | $39,818 | $41,013 | $42,243 |
| - Mortgage Payments | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) | ($29,678) |
| = Cash Flow | $2,698 | $3,669 | $4,670 | $5,700 | $6,762 | $7,855 | $8,981 | $10,141 | $11,335 | $12,566 |
| + Principal Reduction | $5,066 | $5,378 | $5,710 | $6,062 | $6,436 | $6,833 | $7,254 | $7,702 | $8,177 | $8,681 |
| + Appreciation | $33,000 | $34,980 | $37,079 | $39,304 | $41,662 | $44,161 | $46,811 | $49,620 | $52,597 | $55,753 |
| = Gross Equity Income | $40,764 | $44,028 | $47,458 | $51,066 | $54,859 | $58,849 | $63,046 | $67,462 | $72,109 | $76,999 |
| Capitalization Rate | 5.6% | 5.4% | 5.2% | 5.1% | 5.0% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% |
| Cash on Cash Return | 1.8% | 2.4% | 3.0% | 3.7% | 4.4% | 5.1% | 5.8% | 6.6% | 7.4% | 8.2% |
| Return on Equity | 23.2% | 20.4% | 18.3% | 16.8% | 15.6% | 14.6% | 13.8% | 13.1% | 12.5% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $583,000 | $617,980 | $655,059 | $694,362 | $736,024 | $780,186 | $826,997 | $876,616 | $929,213 | $984,966 |
| - Loan Balance | ($407,434) | ($402,056) | ($396,347) | ($390,285) | ($383,849) | ($377,016) | ($369,762) | ($362,060) | ($353,884) | ($345,203) |
| = Equity | $175,566 | $215,924 | $258,712 | $304,078 | $352,175 | $403,169 | $457,235 | $514,556 | $575,330 | $639,763 |
| 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 | $117,266 | $154,126 | $193,206 | $234,641 | $278,573 | $325,151 | $374,535 | $426,894 | $482,408 | $541,267 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $175,566 | $215,924 | $258,712 | $304,078 | $352,175 | $403,169 | $457,235 | $514,556 | $575,330 | $639,763 |
| - Closing Costs | ($40,810) | ($43,259) | ($45,854) | ($48,605) | ($51,522) | ($54,613) | ($57,890) | ($61,363) | ($65,045) | ($68,948) |
| = Proceeds After Sale | $134,756 | $172,665 | $212,858 | $255,472 | $300,653 | $348,556 | $399,345 | $453,193 | $510,285 | $570,816 |
| + Cumulative Cash Flow | $2,698 | $6,368 | $11,038 | $16,738 | $23,500 | $31,354 | $40,335 | $50,476 | $61,811 | $74,377 |
| - Approximate Cash Invested | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) | ($154,000) |
| = Net Profit | ($16,546) | $25,033 | $69,896 | $118,210 | $170,153 | $225,911 | $285,680 | $349,669 | $418,096 | $491,192 |
| Internal Rate of Return | -10.7% | 7.9% | 13.5% | 15.7% | 16.5% | 16.9% | 16.9% | 16.8% | 16.6% | 16.4% |
| Return on Investment | -10.7% | 16.3% | 45.4% | 76.8% | 110.5% | 146.7% | 185.5% | 227.1% | 271.5% | 319.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.