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Ten Year Performance Projection

Co-Living - Currently Occupied
Arizona
8bd • 3ba • Built: 1958

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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.
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