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Ten Year Performance Projection

New Construction Duplex 30 Year Fixed
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($3,990)($4,138)($4,291)($4,449)($4,614)($4,785)($4,962)($5,145)($5,336)($5,533)
Insurance($1,596)($1,655)($1,716)($1,780)($1,846)($1,914)($1,985)($2,058)($2,134)($2,213)
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 ($6,316)($6,549)($6,792)($7,043)($7,303)($7,574)($7,854)($8,145)($8,446)($8,758)
Income AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Net Operating Income $27,246$28,019$28,814$29,631$30,470$31,333$32,220$33,132$34,069$35,032
- Mortgage Payments($23,891)($23,891)($23,891)($23,891)($23,891)($23,891)($23,891)($23,891)($23,891)($23,891)
= Cash Flow $3,355$4,128$4,923$5,740$6,579$7,442$8,329$9,241$10,178$11,141
+ Principal Reduction $3,040$3,260$3,495$3,748$4,019$4,309$4,621$4,955$5,313$5,697
+ Appreciation $19,950$20,948$21,995$23,095$24,249$25,462$26,735$28,072$29,475$30,949
= Gross Equity Income $26,345$28,335$30,413$32,582$34,848$37,214$39,685$42,268$44,966$47,787
Capitalization Rate 6.5%6.4%6.2%6.1%6.0%5.9%5.7%5.6%5.5%5.4%
Cash on Cash Return 3.0%3.7%4.5%5.2%6.0%6.8%7.6%8.4%9.2%10.1%
Return on Equity 21.5%19.3%17.6%16.4%15.3%14.5%13.7%13.1%12.6%12.2%
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 ($296,210)($292,951)($289,455)($285,707)($281,689)($277,379)($272,758)($267,803)($262,490)($256,793)
= Equity $122,740$146,947$172,437$199,280$227,548$257,319$288,675$321,701$356,490$393,136
Loan-to-Value Ratio 70.7%66.6%62.7%58.9%55.3%51.9%48.6%45.4%42.4%39.5%
Potential Cash-Out Refi $80,845$102,957$126,248$150,781$176,624$203,849$232,531$262,751$294,592$328,143
Sale AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Equity $122,740$146,947$172,437$199,280$227,548$257,319$288,675$321,701$356,490$393,136
- 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 $93,413$116,154$140,105$165,330$191,901$219,890$249,374$280,436$313,161$347,641
+ Cumulative Cash Flow $3,355$7,483$12,406$18,146$24,725$32,167$40,497$49,738$59,916$71,056
- Approximate Cash Invested($110,224)($110,224)($110,224)($110,224)($110,224)($110,224)($110,224)($110,224)($110,224)($110,224)
= Net Profit ($13,455)$13,413$42,287$73,252$106,403$141,834$179,647$219,950$262,853$308,474
Internal Rate of Return -12.2%6.0%11.8%14.1%15.2%15.7%15.9%15.9%15.9%15.8%
Return on Investment -12.2%12.2%38.4%66.5%96.5%128.7%163.0%199.5%238.5%279.9%
*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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