Pre-Leased Property
Vero Beach, FL 32968
3bd • 2ba • Built: 1980
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $26,400 | $27,192 | $28,008 | $28,848 | $29,713 | $30,605 | $31,523 | $32,469 | $33,443 | $34,446 |
| Vacancy Losses | ($2,112) | ($2,175) | ($2,241) | ($2,308) | ($2,377) | ($2,448) | ($2,522) | ($2,597) | ($2,675) | ($2,756) |
| Operating Income | $24,288 | $25,017 | $25,767 | $26,540 | $27,336 | $28,156 | $29,001 | $29,871 | $30,767 | $31,690 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,840) | ($3,955) | ($4,074) | ($4,196) | ($4,322) | ($4,452) | ($4,585) | ($4,723) | ($4,864) | ($5,010) |
| Insurance | ($2,400) | ($2,472) | ($2,546) | ($2,623) | ($2,701) | ($2,782) | ($2,866) | ($2,952) | ($3,040) | ($3,131) |
| 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 | ($2,112) | ($2,175) | ($2,241) | ($2,308) | ($2,377) | ($2,448) | ($2,522) | ($2,597) | ($2,675) | ($2,756) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,352) | ($8,603) | ($8,861) | ($9,126) | ($9,400) | ($9,682) | ($9,973) | ($10,272) | ($10,580) | ($10,897) |
| 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 | $15,936 | $16,414 | $16,907 | $17,414 | $17,936 | $18,474 | $19,028 | $19,599 | $20,187 | $20,793 |
| - Mortgage Payments | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) |
| = Cash Flow | $936 | $1,414 | $1,907 | $2,414 | $2,936 | $3,474 | $4,028 | $4,599 | $5,187 | $5,793 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $16,000 | $16,800 | $17,640 | $18,522 | $19,448 | $20,421 | $21,442 | $22,514 | $23,639 | $24,821 |
| = Gross Equity Income | $16,936 | $18,214 | $19,547 | $20,936 | $22,384 | $23,895 | $25,470 | $27,113 | $28,827 | $30,614 |
| Capitalization Rate | 4.7% | 4.7% | 4.6% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% | 4.1% | 4.0% |
| Cash on Cash Return | 0.9% | 1.4% | 1.8% | 2.3% | 2.8% | 3.3% | 3.9% | 4.4% | 5.0% | 5.5% |
| Return on Equity | 17.6% | 16.1% | 15.0% | 14.1% | 13.3% | 12.7% | 12.1% | 11.6% | 11.2% | 10.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $336,000 | $352,800 | $370,440 | $388,962 | $408,410 | $428,831 | $450,272 | $472,786 | $496,425 | $521,246 |
| - Loan Balance | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) | ($240,000) |
| = Equity | $96,000 | $112,800 | $130,440 | $148,962 | $168,410 | $188,831 | $210,272 | $232,786 | $256,425 | $281,246 |
| 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 | $62,400 | $77,520 | $93,396 | $110,066 | $127,569 | $145,948 | $165,245 | $185,507 | $206,783 | $229,122 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $96,000 | $112,800 | $130,440 | $148,962 | $168,410 | $188,831 | $210,272 | $232,786 | $256,425 | $281,246 |
| - Closing Costs | ($23,520) | ($24,696) | ($25,931) | ($27,227) | ($28,589) | ($30,018) | ($31,519) | ($33,095) | ($34,750) | ($36,487) |
| = Proceeds After Sale | $72,480 | $88,104 | $104,509 | $121,735 | $139,821 | $158,812 | $178,753 | $199,691 | $221,675 | $244,759 |
| + Cumulative Cash Flow | $936 | $2,350 | $4,257 | $6,670 | $9,606 | $13,081 | $17,109 | $21,708 | $26,896 | $32,688 |
| - Approximate Cash Invested | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) | ($104,400) |
| = Net Profit | ($30,984) | ($13,946) | $4,366 | $24,005 | $45,028 | $67,493 | $91,462 | $116,999 | $144,171 | $173,047 |
| Internal Rate of Return | -29.7% | -7.0% | 1.4% | 5.4% | 7.6% | 8.9% | 9.7% | 10.3% | 10.6% | 10.8% |
| Return on Investment | -29.7% | -13.4% | 4.2% | 23.0% | 43.1% | 64.6% | 87.6% | 112.1% | 138.1% | 165.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.