New Construction Duplex
Arkansas
6bd • 3ba • Built: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $36,480 | $37,574 | $38,702 | $39,863 | $41,059 | $42,290 | $43,559 | $44,866 | $46,212 | $47,598 |
| Vacancy Losses | ($2,918) | ($3,006) | ($3,096) | ($3,189) | ($3,285) | ($3,383) | ($3,485) | ($3,589) | ($3,697) | ($3,808) |
| Operating Income | $33,562 | $34,568 | $35,606 | $36,674 | $37,774 | $38,907 | $40,074 | $41,277 | $42,515 | $43,790 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,389) | ($4,551) | ($4,720) | ($4,894) | ($5,076) | ($5,263) | ($5,458) | ($5,660) | ($5,869) | ($6,087) |
| Insurance | ($2,394) | ($2,483) | ($2,574) | ($2,670) | ($2,768) | ($2,871) | ($2,977) | ($3,087) | ($3,202) | ($3,320) |
| 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 | ($730) | ($757) | ($785) | ($814) | ($844) | ($875) | ($907) | ($941) | ($976) | ($1,012) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($7,513) | ($7,791) | ($8,079) | ($8,378) | ($8,688) | ($9,009) | ($9,342) | ($9,688) | ($10,047) | ($10,418) |
| 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 | $26,049 | $26,778 | $27,527 | $28,296 | $29,086 | $29,898 | $30,732 | $31,588 | $32,468 | $33,372 |
| - Mortgage Payments | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) |
| = Cash Flow | $7,720 | $8,449 | $9,198 | $9,967 | $10,757 | $11,569 | $12,403 | $13,259 | $14,139 | $15,043 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $19,950 | $20,948 | $21,995 | $23,095 | $24,249 | $25,462 | $26,735 | $28,072 | $29,475 | $30,949 |
| = Gross Equity Income | $27,670 | $29,396 | $31,193 | $33,062 | $35,006 | $37,031 | $39,138 | $41,331 | $43,614 | $45,992 |
| Capitalization Rate | 6.2% | 6.1% | 6.0% | 5.8% | 5.7% | 5.6% | 5.5% | 5.4% | 5.2% | 5.1% |
| Cash on Cash Return | 6.6% | 7.2% | 7.8% | 8.5% | 9.1% | 9.8% | 10.5% | 11.3% | 12.0% | 12.8% |
| Return on Equity | 23.1% | 20.9% | 19.2% | 17.8% | 16.7% | 15.7% | 14.9% | 14.2% | 13.6% | 13.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $418,950 | $439,898 | $461,892 | $484,987 | $509,236 | $534,698 | $561,433 | $589,505 | $618,980 | $649,929 |
| - Loan Balance | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) |
| = Equity | $119,700 | $140,648 | $162,642 | $185,737 | $209,986 | $235,448 | $262,183 | $290,255 | $319,730 | $350,679 |
| 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 | $77,805 | $96,658 | $116,453 | $137,238 | $159,063 | $181,978 | $206,040 | $231,304 | $257,832 | $285,686 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $119,700 | $140,648 | $162,642 | $185,737 | $209,986 | $235,448 | $262,183 | $290,255 | $319,730 | $350,679 |
| - Closing Costs | ($29,327) | ($30,793) | ($32,332) | ($33,949) | ($35,647) | ($37,429) | ($39,300) | ($41,265) | ($43,329) | ($45,495) |
| = Proceeds After Sale | $90,374 | $109,855 | $130,310 | $151,788 | $174,340 | $198,019 | $222,883 | $248,989 | $276,401 | $305,184 |
| + Cumulative Cash Flow | $7,720 | $16,169 | $25,366 | $35,333 | $46,090 | $57,659 | $70,062 | $83,321 | $97,461 | $112,504 |
| - Approximate Cash Invested | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) | ($117,705) |
| = Net Profit | ($19,612) | $8,318 | $37,971 | $69,416 | $102,725 | $137,974 | $175,240 | $214,606 | $256,157 | $299,982 |
| Internal Rate of Return | -16.7% | 3.6% | 10.4% | 13.3% | 14.8% | 15.6% | 16.0% | 16.1% | 16.2% | 16.2% |
| Return on Investment | -16.7% | 7.1% | 32.3% | 59.0% | 87.3% | 117.2% | 148.9% | 182.3% | 217.6% | 254.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.