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Ten Year Performance Projection

New Construction Duplex
Arkansas
6bd • 3ba • Built: 2025

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