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Ten Year Performance Projection

Office Park
Texas
6bd • 6ba • Built: 2026

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Projected Rent $156,240$160,927$165,755$170,728$175,849$181,125$186,559$192,155$197,920$203,858
Vacancy Losses ($12,499)($12,874)($13,260)($13,658)($14,068)($14,490)($14,925)($15,372)($15,834)($16,309)
Operating Income $143,741$148,053$152,495$157,069$161,782$166,635$171,634$176,783$182,087$187,549
Estimated ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Property Taxes($8,486)($8,800)($9,126)($9,464)($9,814)($10,177)($10,553)($10,944)($11,349)($11,769)
Insurance($12,730)($13,201)($13,689)($14,196)($14,721)($15,265)($15,830)($16,416)($17,023)($17,653)
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$0$0$0$0$0$0$0$0$0$0
Other$0$0$0$0$0$0$0$0$0$0
Operating Expenses ($21,216)($22,001)($22,815)($23,659)($24,535)($25,442)($26,384)($27,360)($28,372)($29,422)
Income AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Net Operating Income $122,525$126,052$129,680$133,410$137,247$141,193$145,250$149,423$153,714$158,127
- Mortgage Payments($112,576)($112,576)($112,576)($112,576)($112,576)($112,576)($112,576)($112,576)($112,576)($112,576)
= Cash Flow $9,948$13,476$17,103$20,834$24,671$28,616$32,674$36,847$41,138$45,551
+ Principal Reduction $21,583$23,086$24,693$26,412$28,251$30,218$32,322$34,573$36,980$39,555
+ Appreciation $106,080$111,384$116,953$122,801$128,941$135,388$142,157$149,265$156,728$164,565
= Gross Equity Income $137,611$147,945$158,749$170,047$181,863$194,223$207,154$220,685$234,847$249,671
Capitalization Rate 5.5%5.4%5.3%5.2%5.1%5.0%4.9%4.8%4.7%4.6%
Cash on Cash Return 1.2%1.6%2.1%2.6%3.0%3.5%4.0%4.5%5.0%5.6%
Return on Equity 15.4%14.4%13.6%12.9%12.3%11.8%11.4%11.0%10.7%10.4%
Loan AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Market Value $2,227,680$2,339,064$2,456,017$2,578,818$2,707,759$2,843,147$2,985,304$3,134,569$3,291,298$3,455,863
- Loan Balance ($1,336,241)($1,313,156)($1,288,463)($1,262,050)($1,233,799)($1,203,581)($1,171,258)($1,136,685)($1,099,705)($1,060,150)
= Equity $891,439$1,025,908$1,167,555$1,316,768$1,473,960$1,639,566$1,814,046$1,997,884$2,191,593$2,395,713
Loan-to-Value Ratio 60.0%56.1%52.5%48.9%45.6%42.3%39.2%36.3%33.4%30.7%
Potential Cash-Out Refi $668,671$792,002$921,953$1,058,886$1,203,184$1,355,252$1,515,516$1,684,427$1,862,463$2,050,127
Sale AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Equity $891,439$1,025,908$1,167,555$1,316,768$1,473,960$1,639,566$1,814,046$1,997,884$2,191,593$2,395,713
- Closing Costs ($155,938)($163,734)($171,921)($180,517)($189,543)($199,020)($208,971)($219,420)($230,391)($241,910)
= Proceeds After Sale $735,501$862,174$995,633$1,136,250$1,284,417$1,440,546$1,605,075$1,778,464$1,961,202$2,153,803
+ Cumulative Cash Flow $9,948$23,424$40,527$61,361$86,032$114,648$147,322$184,169$225,307$270,858
- Approximate Cash Invested($816,816)($816,816)($816,816)($816,816)($816,816)($816,816)($816,816)($816,816)($816,816)($816,816)
= Net Profit ($71,366)$68,782$219,345$380,796$553,633$738,378$935,581$1,145,818$1,369,693$1,607,845
Internal Rate of Return -8.7%4.1%8.4%10.2%11.2%11.7%11.9%12.1%12.1%12.1%
Return on Investment -8.7%8.4%26.9%46.6%67.8%90.4%114.5%140.3%167.7%196.8%
*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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