Cash Flow Fourplex
Arkansas
8bd • 6ba • Built: 1972 • Remodeled: 2024
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $63,360 | $65,261 | $67,219 | $69,235 | $71,312 | $73,452 | $75,655 | $77,925 | $80,263 | $82,670 |
| Vacancy Losses | ($5,069) | ($5,221) | ($5,377) | ($5,539) | ($5,705) | ($5,876) | ($6,052) | ($6,234) | ($6,421) | ($6,614) |
| Operating Income | $58,291 | $60,040 | $61,841 | $63,696 | $65,607 | $67,575 | $69,603 | $71,691 | $73,842 | $76,057 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,500) | ($4,667) | ($4,839) | ($5,018) | ($5,204) | ($5,396) | ($5,596) | ($5,803) | ($6,018) | ($6,241) |
| Insurance | ($3,600) | ($3,733) | ($3,871) | ($4,015) | ($4,163) | ($4,317) | ($4,477) | ($4,643) | ($4,814) | ($4,992) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | ($2) | ($2) | ($2) | ($2) | ($2) | ($2) | ($2) | ($3) | ($3) | ($3) |
| Association Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($3,168) | ($3,285) | ($3,407) | ($3,533) | ($3,664) | ($3,799) | ($3,940) | ($4,085) | ($4,237) | ($4,393) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($11,270) | ($11,687) | ($12,119) | ($12,568) | ($13,033) | ($13,515) | ($14,015) | ($14,534) | ($15,071) | ($15,629) |
| 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 | $47,021 | $48,353 | $49,722 | $51,129 | $52,574 | $54,060 | $55,588 | $57,157 | $58,770 | $60,428 |
| - Mortgage Payments | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) | ($27,563) |
| = Cash Flow | $19,459 | $20,790 | $22,159 | $23,566 | $25,012 | $26,498 | $28,025 | $29,595 | $31,208 | $32,865 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $30,000 | $31,500 | $33,075 | $34,729 | $36,465 | $38,288 | $40,203 | $42,213 | $44,324 | $46,540 |
| = Gross Equity Income | $49,459 | $52,290 | $55,234 | $58,295 | $61,477 | $64,786 | $68,228 | $71,808 | $75,531 | $79,405 |
| Capitalization Rate | 7.5% | 7.3% | 7.2% | 7.0% | 6.9% | 6.7% | 6.6% | 6.4% | 6.3% | 6.2% |
| Cash on Cash Return | 11.6% | 12.4% | 13.2% | 14.0% | 14.9% | 15.8% | 16.7% | 17.6% | 18.6% | 19.6% |
| Return on Equity | 27.5% | 24.7% | 22.6% | 20.9% | 19.5% | 18.3% | 17.3% | 16.5% | 15.7% | 15.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $630,000 | $661,500 | $694,575 | $729,304 | $765,769 | $804,057 | $844,260 | $886,473 | $930,797 | $977,337 |
| - Loan Balance | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) | ($450,000) |
| = Equity | $180,000 | $211,500 | $244,575 | $279,304 | $315,769 | $354,057 | $394,260 | $436,473 | $480,797 | $527,337 |
| 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 | $117,000 | $145,350 | $175,118 | $206,373 | $239,192 | $273,652 | $309,834 | $347,826 | $387,717 | $429,603 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $180,000 | $211,500 | $244,575 | $279,304 | $315,769 | $354,057 | $394,260 | $436,473 | $480,797 | $527,337 |
| - Closing Costs | ($44,100) | ($46,305) | ($48,620) | ($51,051) | ($53,604) | ($56,284) | ($59,098) | ($62,053) | ($65,156) | ($68,414) |
| = Proceeds After Sale | $135,900 | $165,195 | $195,955 | $228,252 | $262,165 | $297,773 | $335,162 | $374,420 | $415,641 | $458,923 |
| + Cumulative Cash Flow | $19,459 | $40,249 | $62,408 | $85,974 | $110,986 | $137,484 | $165,509 | $195,104 | $226,311 | $259,176 |
| - Approximate Cash Invested | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) | ($168,000) |
| = Net Profit | ($12,641) | $37,444 | $90,363 | $146,227 | $205,151 | $267,257 | $332,671 | $401,524 | $473,952 | $550,100 |
| Internal Rate of Return | -7.5% | 11.2% | 17.0% | 19.4% | 20.4% | 20.8% | 20.9% | 20.9% | 20.8% | 20.6% |
| Return on Investment | -7.5% | 22.3% | 53.8% | 87.0% | 122.1% | 159.1% | 198.0% | 239.0% | 282.1% | 327.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.