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Ten Year Performance Projection

Short Term Rental in High End Scottsdale
Arizona
5bd • 3ba • Built: 1958

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