Property Information
Currently Occupied with solid tenant!
Montgomery, AL 36117
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $19,200 | $19,776 | $20,369 | $20,980 | $21,610 | $22,258 | $22,926 | $23,614 | $24,322 | $25,052 |
| Vacancy Losses | ($960) | ($989) | ($1,018) | ($1,049) | ($1,080) | ($1,113) | ($1,146) | ($1,181) | ($1,216) | ($1,253) |
| Operating Income | $18,240 | $18,787 | $19,351 | $19,931 | $20,529 | $21,145 | $21,780 | $22,433 | $23,106 | $23,799 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,538) | ($1,584) | ($1,631) | ($1,680) | ($1,730) | ($1,782) | ($1,836) | ($1,891) | ($1,948) | ($2,006) |
| Insurance | ($718) | ($739) | ($761) | ($784) | ($808) | ($832) | ($857) | ($882) | ($909) | ($936) |
| 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 | ($384) | ($396) | ($407) | ($420) | ($432) | ($445) | ($459) | ($472) | ($486) | ($501) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($2,639) | ($2,718) | ($2,800) | ($2,884) | ($2,970) | ($3,059) | ($3,151) | ($3,246) | ($3,343) | ($3,443) |
| 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 | $15,601 | $16,069 | $16,551 | $17,048 | $17,559 | $18,086 | $18,628 | $19,187 | $19,763 | $20,356 |
| - Mortgage Payments | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) | ($11,662) |
| = Cash Flow | $3,939 | $4,407 | $4,890 | $5,386 | $5,897 | $6,424 | $6,967 | $7,526 | $8,101 | $8,694 |
| + Principal Reduction | $1,718 | $1,834 | $1,956 | $2,087 | $2,227 | $2,376 | $2,535 | $2,705 | $2,886 | $3,080 |
| + Appreciation | $12,300 | $13,038 | $13,820 | $14,649 | $15,528 | $16,460 | $17,448 | $18,495 | $19,604 | $20,781 |
| = Gross Equity Income | $17,958 | $19,279 | $20,666 | $22,123 | $23,653 | $25,261 | $26,950 | $28,726 | $30,592 | $32,554 |
| Capitalization Rate | 7.2% | 7.0% | 6.8% | 6.6% | 6.4% | 6.2% | 6.0% | 5.9% | 5.7% | 5.5% |
| Cash on Cash Return | 6.7% | 7.5% | 8.3% | 9.1% | 10.0% | 10.9% | 11.8% | 12.8% | 13.7% | 14.8% |
| Return on Equity | 27.5% | 24.1% | 21.5% | 19.6% | 18.1% | 16.9% | 15.9% | 15.1% | 14.4% | 13.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $217,300 | $230,338 | $244,158 | $258,808 | $274,336 | $290,796 | $308,244 | $326,739 | $346,343 | $367,124 |
| - Loan Balance | ($152,032) | ($150,198) | ($148,242) | ($146,154) | ($143,927) | ($141,551) | ($139,015) | ($136,310) | ($133,424) | ($130,344) |
| = Equity | $65,268 | $80,140 | $95,917 | $112,653 | $130,409 | $149,246 | $169,229 | $190,429 | $212,919 | $236,780 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $43,538 | $57,106 | $71,501 | $86,773 | $102,975 | $120,166 | $138,404 | $157,755 | $178,285 | $200,067 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $65,268 | $80,140 | $95,917 | $112,653 | $130,409 | $149,246 | $169,229 | $190,429 | $212,919 | $236,780 |
| - Closing Costs | ($15,211) | ($16,124) | ($17,091) | ($18,117) | ($19,204) | ($20,356) | ($21,577) | ($22,872) | ($24,244) | ($25,699) |
| = Proceeds After Sale | $50,057 | $64,016 | $78,826 | $94,537 | $111,206 | $128,890 | $147,652 | $167,557 | $188,675 | $211,081 |
| + Cumulative Cash Flow | $3,939 | $8,347 | $13,236 | $18,622 | $24,520 | $30,944 | $37,911 | $45,437 | $53,538 | $62,232 |
| - Initial Cash Invested | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) | ($58,938) |
| = Net Profit | ($4,941) | $13,426 | $33,124 | $54,222 | $76,788 | $100,896 | $126,625 | $154,056 | $183,276 | $214,376 |
| Internal Rate of Return | -8.4% | 11.1% | 16.9% | 19.1% | 20.0% | 20.2% | 20.2% | 20.0% | 19.8% | 19.5% |
| Return on Investment | -8.4% | 22.8% | 56.2% | 92.0% | 130.3% | 171.2% | 214.8% | 261.4% | 311.0% | 363.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
