Pre-Leased Property
Vero Beach, FL 32962
3bd • 2ba • Built: 1977
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $31,140 | $32,074 | $33,036 | $34,028 | $35,048 | $36,100 | $37,183 | $38,298 | $39,447 | $40,631 |
| Vacancy Losses | ($2,491) | ($2,566) | ($2,643) | ($2,722) | ($2,804) | ($2,888) | ($2,975) | ($3,064) | ($3,156) | ($3,250) |
| Operating Income | $28,649 | $29,508 | $30,394 | $31,305 | $32,244 | $33,212 | $34,208 | $35,234 | $36,291 | $37,380 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($5,100) | ($5,253) | ($5,411) | ($5,573) | ($5,740) | ($5,912) | ($6,090) | ($6,272) | ($6,461) | ($6,654) |
| Insurance | ($3,188) | ($3,283) | ($3,382) | ($3,483) | ($3,588) | ($3,695) | ($3,806) | ($3,920) | ($4,038) | ($4,159) |
| 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 | ($2,491) | ($2,566) | ($2,643) | ($2,722) | ($2,804) | ($2,888) | ($2,975) | ($3,064) | ($3,156) | ($3,250) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($10,779) | ($11,102) | ($11,435) | ($11,778) | ($12,132) | ($12,495) | ($12,870) | ($13,256) | ($13,654) | ($14,064) |
| 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 | $17,870 | $18,406 | $18,958 | $19,527 | $20,113 | $20,716 | $21,338 | $21,978 | $22,637 | $23,316 |
| - Mortgage Payments | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) | ($19,922) |
| = Cash Flow | ($2,052) | ($1,516) | ($964) | ($395) | $191 | $794 | $1,416 | $2,056 | $2,715 | $3,395 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $21,250 | $22,313 | $23,428 | $24,600 | $25,830 | $27,121 | $28,477 | $29,901 | $31,396 | $32,966 |
| = Gross Equity Income | $19,198 | $20,797 | $22,465 | $24,205 | $26,021 | $27,915 | $29,893 | $31,957 | $34,111 | $36,360 |
| Capitalization Rate | 4.0% | 3.9% | 3.9% | 3.8% | 3.7% | 3.6% | 3.6% | 3.5% | 3.4% | 3.4% |
| Cash on Cash Return | -1.5% | -1.1% | -0.7% | -0.3% | 0.1% | 0.6% | 1.0% | 1.5% | 2.0% | 2.5% |
| Return on Equity | 15.1% | 13.9% | 13.0% | 12.2% | 11.6% | 11.1% | 10.7% | 10.3% | 10.0% | 9.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $446,250 | $468,563 | $491,991 | $516,590 | $542,420 | $569,541 | $598,018 | $627,919 | $659,314 | $692,280 |
| - Loan Balance | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) | ($318,750) |
| = Equity | $127,500 | $149,813 | $173,241 | $197,840 | $223,670 | $250,791 | $279,268 | $309,169 | $340,564 | $373,530 |
| Loan-to-Value Ratio | 71.4% | 68.0% | 64.8% | 61.7% | 58.8% | 56.0% | 53.3% | 50.8% | 48.3% | 46.0% |
| Potential Cash-Out Refi | $82,875 | $102,956 | $124,042 | $146,181 | $169,428 | $193,837 | $219,466 | $246,377 | $274,633 | $304,302 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $127,500 | $149,813 | $173,241 | $197,840 | $223,670 | $250,791 | $279,268 | $309,169 | $340,564 | $373,530 |
| - Closing Costs | ($31,238) | ($32,799) | ($34,439) | ($36,161) | ($37,969) | ($39,868) | ($41,861) | ($43,954) | ($46,152) | ($48,460) |
| = Proceeds After Sale | $96,263 | $117,013 | $138,801 | $161,679 | $185,700 | $210,923 | $237,406 | $265,214 | $294,412 | $325,071 |
| + Cumulative Cash Flow | ($2,052) | ($3,568) | ($4,531) | ($4,926) | ($4,735) | ($3,940) | ($2,524) | ($468) | $2,247 | $5,641 |
| - Approximate Cash Invested | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) | ($135,375) |
| = Net Profit | ($41,164) | ($21,929) | ($1,105) | $21,378 | $45,590 | $71,607 | $99,507 | $129,371 | $161,284 | $195,337 |
| Internal Rate of Return | -30.4% | -8.4% | -0.3% | 3.7% | 5.9% | 7.2% | 8.0% | 8.6% | 9.0% | 9.2% |
| Return on Investment | -30.4% | -16.2% | -0.8% | 15.8% | 33.7% | 52.9% | 73.5% | 95.6% | 119.1% | 144.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.