Short Term Rental in High End Scottsdale
Arizona
5bd • 3ba • Built: 1958
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $110,400 | $113,712 | $117,123 | $120,637 | $124,256 | $127,984 | $131,823 | $135,778 | $139,851 | $144,047 |
| Vacancy Losses | ($11,040) | ($11,371) | ($11,712) | ($12,064) | ($12,426) | ($12,798) | ($13,182) | ($13,578) | ($13,985) | ($14,405) |
| Operating Income | $99,360 | $102,341 | $105,411 | $108,573 | $111,831 | $115,185 | $118,641 | $122,200 | $125,866 | $129,642 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,596) | ($3,729) | ($3,867) | ($4,010) | ($4,158) | ($4,312) | ($4,472) | ($4,637) | ($4,809) | ($4,987) |
| Insurance | ($5,394) | ($5,594) | ($5,801) | ($6,015) | ($6,238) | ($6,469) | ($6,708) | ($6,956) | ($7,213) | ($7,480) |
| Management Fees | ($19,872) | ($20,468) | ($21,082) | ($21,715) | ($22,366) | ($23,037) | ($23,728) | ($24,440) | ($25,173) | ($25,928) |
| 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 | ($8,832) | ($9,159) | ($9,498) | ($9,849) | ($10,213) | ($10,591) | ($10,983) | ($11,390) | ($11,811) | ($12,248) |
| Other | ($14,400) | ($14,933) | ($15,485) | ($16,058) | ($16,652) | ($17,269) | ($17,908) | ($18,570) | ($19,257) | ($19,970) |
| Operating Expenses | ($52,094) | ($53,882) | ($55,733) | ($57,647) | ($59,628) | ($61,678) | ($63,799) | ($65,993) | ($68,264) | ($70,613) |
| 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 | $47,266 | $48,458 | $49,678 | $50,926 | $52,202 | $53,508 | $54,842 | $56,207 | $57,602 | $59,029 |
| - Mortgage Payments | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) | ($46,355) |
| = Cash Flow | $911 | $2,104 | $3,324 | $4,571 | $5,848 | $7,153 | $8,488 | $9,852 | $11,248 | $12,674 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $44,950 | $47,198 | $49,557 | $52,035 | $54,637 | $57,369 | $60,237 | $63,249 | $66,412 | $69,732 |
| = Gross Equity Income | $45,861 | $49,301 | $52,881 | $56,607 | $60,485 | $64,522 | $68,725 | $73,102 | $77,659 | $82,406 |
| Capitalization Rate | 5.0% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% |
| Cash on Cash Return | 0.4% | 0.8% | 1.3% | 1.8% | 2.3% | 2.8% | 3.4% | 3.9% | 4.5% | 5.0% |
| Return on Equity | 17.0% | 15.6% | 14.4% | 13.5% | 12.8% | 12.2% | 11.6% | 11.2% | 10.8% | 10.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $943,950 | $991,148 | $1,040,705 | $1,092,740 | $1,147,377 | $1,204,746 | $1,264,983 | $1,328,232 | $1,394,644 | $1,464,376 |
| - Loan Balance | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) | ($674,250) |
| = Equity | $269,700 | $316,898 | $366,455 | $418,490 | $473,127 | $530,496 | $590,733 | $653,982 | $720,394 | $790,126 |
| 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 | $175,305 | $217,783 | $262,384 | $309,216 | $358,389 | $410,021 | $464,235 | $521,159 | $580,930 | $643,689 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $269,700 | $316,898 | $366,455 | $418,490 | $473,127 | $530,496 | $590,733 | $653,982 | $720,394 | $790,126 |
| - Closing Costs | ($66,077) | ($69,380) | ($72,849) | ($76,492) | ($80,316) | ($84,332) | ($88,549) | ($92,976) | ($97,625) | ($102,506) |
| = Proceeds After Sale | $203,624 | $247,517 | $293,606 | $341,998 | $392,811 | $446,164 | $502,184 | $561,006 | $622,769 | $687,620 |
| + Cumulative Cash Flow | $911 | $3,015 | $6,339 | $10,910 | $16,758 | $23,911 | $32,398 | $42,251 | $53,498 | $66,173 |
| - Approximate Cash Invested | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) | ($251,720) |
| = Net Profit | ($47,185) | ($1,188) | $48,224 | $101,188 | $157,848 | $218,354 | $282,863 | $351,537 | $424,547 | $502,072 |
| Internal Rate of Return | -18.7% | -0.2% | 6.0% | 8.9% | 10.4% | 11.2% | 11.6% | 11.8% | 12.0% | 12.0% |
| Return on Investment | -18.7% | -0.5% | 19.2% | 40.2% | 62.7% | 86.7% | 112.4% | 139.7% | 168.7% | 199.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.