Desirable area!
Arizona
3bd • 2ba • Built: 2004
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $25,200 | $25,956 | $26,735 | $27,537 | $28,363 | $29,214 | $30,090 | $30,993 | $31,923 | $32,880 |
| Vacancy Losses | ($2,016) | ($2,076) | ($2,139) | ($2,203) | ($2,269) | ($2,337) | ($2,407) | ($2,479) | ($2,554) | ($2,630) |
| Operating Income | $23,184 | $23,880 | $24,596 | $25,334 | $26,094 | $26,877 | $27,683 | $28,513 | $29,369 | $30,250 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,390) | ($1,441) | ($1,495) | ($1,550) | ($1,607) | ($1,667) | ($1,729) | ($1,793) | ($1,859) | ($1,928) |
| Insurance | ($2,085) | ($2,162) | ($2,242) | ($2,325) | ($2,411) | ($2,500) | ($2,593) | ($2,689) | ($2,788) | ($2,891) |
| 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 | ($1,080) | ($1,120) | ($1,161) | ($1,204) | ($1,249) | ($1,295) | ($1,343) | ($1,393) | ($1,444) | ($1,498) |
| Maintenance | ($504) | ($523) | ($542) | ($562) | ($583) | ($604) | ($627) | ($650) | ($674) | ($699) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,059) | ($5,246) | ($5,440) | ($5,642) | ($5,850) | ($6,067) | ($6,291) | ($6,524) | ($6,765) | ($7,016) |
| 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 | $18,125 | $18,633 | $19,156 | $19,692 | $20,243 | $20,810 | $21,392 | $21,989 | $22,603 | $23,234 |
| - Mortgage Payments | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) | ($17,918) |
| = Cash Flow | $207 | $715 | $1,238 | $1,774 | $2,326 | $2,892 | $3,474 | $4,071 | $4,685 | $5,316 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $17,375 | $18,244 | $19,156 | $20,114 | $21,119 | $22,175 | $23,284 | $24,448 | $25,671 | $26,954 |
| = Gross Equity Income | $17,582 | $18,959 | $20,394 | $21,888 | $23,445 | $25,067 | $26,758 | $28,520 | $30,356 | $32,271 |
| Capitalization Rate | 5.0% | 4.9% | 4.8% | 4.7% | 4.6% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 0.2% | 0.8% | 1.3% | 1.9% | 2.5% | 3.1% | 3.8% | 4.4% | 5.1% | 5.8% |
| Return on Equity | 16.9% | 15.5% | 14.4% | 13.5% | 12.8% | 12.2% | 11.7% | 11.3% | 10.9% | 10.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $364,875 | $383,119 | $402,275 | $422,388 | $443,508 | $465,683 | $488,967 | $513,416 | $539,087 | $566,041 |
| - Loan Balance | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) | ($260,625) |
| = Equity | $104,250 | $122,494 | $141,650 | $161,763 | $182,883 | $205,058 | $228,342 | $252,791 | $278,462 | $305,416 |
| 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 | $67,763 | $84,182 | $101,422 | $119,525 | $138,532 | $158,490 | $179,446 | $201,449 | $224,553 | $248,812 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $104,250 | $122,494 | $141,650 | $161,763 | $182,883 | $205,058 | $228,342 | $252,791 | $278,462 | $305,416 |
| - Closing Costs | ($25,541) | ($26,818) | ($28,159) | ($29,567) | ($31,046) | ($32,598) | ($34,228) | ($35,939) | ($37,736) | ($39,623) |
| = Proceeds After Sale | $78,709 | $95,675 | $113,490 | $132,196 | $151,837 | $172,460 | $194,115 | $216,852 | $240,725 | $265,793 |
| + Cumulative Cash Flow | $207 | $922 | $2,160 | $3,934 | $6,260 | $9,152 | $12,626 | $16,697 | $21,383 | $26,699 |
| - Approximate Cash Invested | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) | ($92,088) |
| = Net Profit | ($13,172) | $4,510 | $23,563 | $44,043 | $66,010 | $89,525 | $114,653 | $141,461 | $170,021 | $200,404 |
| Internal Rate of Return | -14.3% | 2.4% | 7.9% | 10.3% | 11.5% | 12.2% | 12.5% | 12.7% | 12.7% | 12.7% |
| Return on Investment | -14.3% | 4.9% | 25.6% | 47.8% | 71.7% | 97.2% | 124.5% | 153.6% | 184.6% | 217.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.