Assumable Loan @ 4.5%
Phoenix, AZ 85051
3bd • 2ba • Built: 1947
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $24,000 | $24,720 | $25,462 | $26,225 | $27,012 | $27,823 | $28,657 | $29,517 | $30,402 | $31,315 |
| Vacancy Losses | ($1,920) | ($1,978) | ($2,037) | ($2,098) | ($2,161) | ($2,226) | ($2,293) | ($2,361) | ($2,432) | ($2,505) |
| Operating Income | $22,080 | $22,742 | $23,425 | $24,127 | $24,851 | $25,597 | $26,365 | $27,156 | $27,970 | $28,809 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,400) | ($1,442) | ($1,485) | ($1,530) | ($1,576) | ($1,623) | ($1,672) | ($1,722) | ($1,773) | ($1,827) |
| Insurance | ($700) | ($721) | ($743) | ($765) | ($788) | ($811) | ($836) | ($861) | ($887) | ($913) |
| Management Fees | ($1,140) | ($1,174) | ($1,209) | ($1,246) | ($1,283) | ($1,322) | ($1,361) | ($1,402) | ($1,444) | ($1,487) |
| 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 | ($1,200) | ($1,236) | ($1,273) | ($1,311) | ($1,351) | ($1,391) | ($1,433) | ($1,476) | ($1,520) | ($1,566) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,440) | ($4,573) | ($4,710) | ($4,852) | ($4,997) | ($5,147) | ($5,302) | ($5,461) | ($5,624) | ($5,793) |
| 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 | $17,640 | $18,169 | $18,714 | $19,276 | $19,854 | $20,450 | $21,063 | $21,695 | $22,346 | $23,016 |
| - Mortgage Payments | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) | ($15,961) |
| = Cash Flow | $1,679 | $2,209 | $2,754 | $3,315 | $3,893 | $4,489 | $5,102 | $5,734 | $6,385 | $7,056 |
| + Principal Reduction | $4,235 | $4,429 | $4,633 | $4,846 | $5,068 | $5,301 | $5,545 | $5,799 | $6,066 | $6,344 |
| + Appreciation | $21,000 | $22,260 | $23,596 | $25,011 | $26,512 | $28,103 | $29,789 | $31,576 | $33,471 | $35,479 |
| = Gross Equity Income | $26,914 | $28,898 | $30,982 | $33,172 | $35,474 | $37,893 | $40,436 | $43,110 | $45,922 | $48,879 |
| Capitalization Rate | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | 1.6% | 2.1% | 2.7% | 3.2% | 3.8% | 4.3% | 4.9% | 5.6% | 6.2% | 6.8% |
| Return on Equity | 23.9% | 20.7% | 18.5% | 16.8% | 15.5% | 14.4% | 13.6% | 12.9% | 12.3% | 11.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $371,000 | $393,260 | $416,856 | $441,867 | $468,379 | $496,482 | $526,271 | $557,847 | $591,318 | $626,797 |
| - Loan Balance | ($258,265) | ($253,836) | ($249,203) | ($244,358) | ($239,289) | ($233,988) | ($228,444) | ($222,645) | ($216,579) | ($210,235) |
| = Equity | $112,735 | $139,424 | $167,652 | $197,509 | $229,089 | $262,493 | $297,827 | $335,202 | $374,739 | $416,562 |
| Loan-to-Value Ratio | 69.6% | 64.5% | 59.8% | 55.3% | 51.1% | 47.1% | 43.4% | 39.9% | 36.6% | 33.5% |
| Potential Cash-Out Refi | $75,635 | $100,098 | $125,967 | $153,323 | $182,252 | $212,845 | $245,200 | $279,417 | $315,607 | $353,882 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $112,735 | $139,424 | $167,652 | $197,509 | $229,089 | $262,493 | $297,827 | $335,202 | $374,739 | $416,562 |
| - Closing Costs | ($25,970) | ($27,528) | ($29,180) | ($30,931) | ($32,787) | ($34,754) | ($36,839) | ($39,049) | ($41,392) | ($43,876) |
| = Proceeds After Sale | $86,765 | $111,896 | $138,472 | $166,579 | $196,303 | $227,740 | $260,988 | $296,153 | $333,346 | $372,686 |
| + Cumulative Cash Flow | $1,679 | $3,888 | $6,642 | $9,957 | $13,850 | $18,339 | $23,442 | $29,176 | $35,561 | $42,617 |
| - Approximate Cash Invested | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) | ($103,250) |
| = Net Profit | ($14,806) | $12,534 | $41,864 | $73,285 | $106,903 | $142,829 | $181,179 | $222,079 | $265,658 | $312,053 |
| Internal Rate of Return | -14.3% | 5.9% | 12.2% | 14.7% | 15.7% | 16.1% | 16.2% | 16.2% | 16.0% | 15.8% |
| Return on Investment | -14.3% | 12.1% | 40.5% | 71.0% | 103.5% | 138.3% | 175.5% | 215.1% | 257.3% | 302.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.