Co-Living - Currently Occupied
Arizona
8bd • 3ba • Built: 1958
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $74,400 | $76,632 | $78,931 | $81,299 | $83,738 | $86,250 | $88,837 | $91,503 | $94,248 | $97,075 |
| Vacancy Losses | ($5,952) | ($6,131) | ($6,314) | ($6,504) | ($6,699) | ($6,900) | ($7,107) | ($7,320) | ($7,540) | ($7,766) |
| Operating Income | $68,448 | $70,501 | $72,616 | $74,795 | $77,039 | $79,350 | $81,730 | $84,182 | $86,708 | $89,309 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,860) | ($1,929) | ($2,000) | ($2,074) | ($2,151) | ($2,231) | ($2,313) | ($2,399) | ($2,487) | ($2,579) |
| Insurance | ($2,790) | ($2,893) | ($3,000) | ($3,111) | ($3,226) | ($3,346) | ($3,470) | ($3,598) | ($3,731) | ($3,869) |
| Management Fees | ($6,845) | ($7,050) | ($7,262) | ($7,479) | ($7,704) | ($7,935) | ($8,173) | ($8,418) | ($8,671) | ($8,931) |
| 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 | ($3,720) | ($3,858) | ($4,000) | ($4,148) | ($4,302) | ($4,461) | ($4,626) | ($4,797) | ($4,975) | ($5,159) |
| Other | ($14,400) | ($14,933) | ($15,485) | ($16,058) | ($16,652) | ($17,269) | ($17,908) | ($18,570) | ($19,257) | ($19,970) |
| Operating Expenses | ($29,615) | ($30,663) | ($31,748) | ($32,872) | ($34,036) | ($35,241) | ($36,489) | ($37,782) | ($39,121) | ($40,508) |
| 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 | $38,833 | $39,839 | $40,869 | $41,923 | $43,003 | $44,109 | $45,241 | $46,400 | $47,587 | $48,801 |
| - Mortgage Payments | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) | ($26,452) |
| = Cash Flow | $12,381 | $13,387 | $14,417 | $15,471 | $16,551 | $17,657 | $18,789 | $19,948 | $21,135 | $22,349 |
| + Principal Reduction | $3,898 | $4,159 | $4,438 | $4,735 | $5,052 | $5,390 | $5,751 | $6,137 | $6,548 | $6,986 |
| + Appreciation | $23,250 | $24,413 | $25,633 | $26,915 | $28,261 | $29,674 | $31,157 | $32,715 | $34,351 | $36,068 |
| = Gross Equity Income | $39,529 | $41,958 | $44,487 | $47,121 | $49,864 | $52,721 | $55,698 | $58,800 | $62,033 | $65,403 |
| Capitalization Rate | 8.0% | 7.8% | 7.6% | 7.4% | 7.2% | 7.1% | 6.9% | 6.8% | 6.6% | 6.4% |
| Cash on Cash Return | 9.2% | 9.9% | 10.7% | 11.5% | 12.3% | 13.1% | 13.9% | 14.8% | 15.7% | 16.6% |
| Return on Equity | 27.6% | 24.4% | 22.0% | 20.2% | 18.7% | 17.5% | 16.4% | 15.6% | 14.8% | 14.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $488,250 | $512,663 | $538,296 | $565,210 | $593,471 | $623,144 | $654,302 | $687,017 | $721,368 | $757,436 |
| - Loan Balance | ($344,852) | ($340,693) | ($336,255) | ($331,520) | ($326,468) | ($321,078) | ($315,326) | ($309,190) | ($302,642) | ($295,656) |
| = Equity | $143,398 | $171,970 | $202,041 | $233,690 | $267,003 | $302,067 | $338,975 | $377,827 | $418,725 | $461,780 |
| Loan-to-Value Ratio | 70.6% | 66.5% | 62.5% | 58.7% | 55.0% | 51.5% | 48.2% | 45.0% | 42.0% | 39.0% |
| Potential Cash-Out Refi | $94,573 | $120,704 | $148,211 | $177,169 | $207,656 | $239,752 | $273,545 | $309,125 | $346,589 | $386,036 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $143,398 | $171,970 | $202,041 | $233,690 | $267,003 | $302,067 | $338,975 | $377,827 | $418,725 | $461,780 |
| - Closing Costs | ($34,178) | ($35,886) | ($37,681) | ($39,565) | ($41,543) | ($43,620) | ($45,801) | ($48,091) | ($50,496) | ($53,021) |
| = Proceeds After Sale | $109,221 | $136,083 | $164,360 | $194,126 | $225,460 | $258,447 | $293,174 | $329,736 | $368,230 | $408,759 |
| + Cumulative Cash Flow | $12,381 | $25,768 | $40,184 | $55,656 | $72,207 | $89,864 | $108,653 | $128,601 | $149,736 | $172,085 |
| - Approximate Cash Invested | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) | ($134,850) |
| = Net Profit | ($13,248) | $27,001 | $69,694 | $114,931 | $162,817 | $213,461 | $266,977 | $323,487 | $383,115 | $445,994 |
| Internal Rate of Return | -9.8% | 10.0% | 16.1% | 18.5% | 19.5% | 19.9% | 20.0% | 20.0% | 19.8% | 19.6% |
| Return on Investment | -9.8% | 20.0% | 51.7% | 85.2% | 120.7% | 158.3% | 198.0% | 239.9% | 284.1% | 330.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.