STR Near PGA Golf Tourney
Arizona
4bd • 3ba • Built: 1980
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $102,000 | $105,060 | $108,212 | $111,458 | $114,802 | $118,246 | $121,793 | $125,447 | $129,211 | $133,087 |
| Vacancy Losses | ($10,200) | ($10,506) | ($10,821) | ($11,146) | ($11,480) | ($11,825) | ($12,179) | ($12,545) | ($12,921) | ($13,309) |
| Operating Income | $91,800 | $94,554 | $97,391 | $100,312 | $103,322 | $106,421 | $109,614 | $112,902 | $116,289 | $119,778 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,263) | ($3,383) | ($3,508) | ($3,638) | ($3,773) | ($3,912) | ($4,057) | ($4,207) | ($4,363) | ($4,524) |
| Insurance | ($4,350) | ($4,511) | ($4,678) | ($4,851) | ($5,030) | ($5,217) | ($5,410) | ($5,610) | ($5,817) | ($6,033) |
| Management Fees | ($18,360) | ($18,911) | ($19,478) | ($20,062) | ($20,664) | ($21,284) | ($21,923) | ($22,580) | ($23,258) | ($23,956) |
| 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 | ($5,100) | ($5,289) | ($5,484) | ($5,687) | ($5,898) | ($6,116) | ($6,342) | ($6,577) | ($6,820) | ($7,073) |
| Other | ($14,400) | ($14,933) | ($15,485) | ($16,058) | ($16,652) | ($17,269) | ($17,908) | ($18,570) | ($19,257) | ($19,970) |
| Operating Expenses | ($45,473) | ($47,026) | ($48,634) | ($50,297) | ($52,018) | ($53,798) | ($55,639) | ($57,544) | ($59,516) | ($61,555) |
| 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 | $46,328 | $47,528 | $48,757 | $50,015 | $51,304 | $52,624 | $53,975 | $55,358 | $56,774 | $58,223 |
| - Mortgage Payments | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) | ($37,383) |
| = Cash Flow | $8,945 | $10,145 | $11,374 | $12,632 | $13,921 | $15,241 | $16,592 | $17,975 | $19,391 | $20,841 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $36,250 | $38,063 | $39,966 | $41,964 | $44,062 | $46,265 | $48,578 | $51,007 | $53,558 | $56,236 |
| = Gross Equity Income | $45,195 | $48,207 | $51,339 | $54,596 | $57,983 | $61,506 | $65,170 | $68,983 | $72,949 | $77,076 |
| Capitalization Rate | 6.1% | 5.9% | 5.8% | 5.7% | 5.5% | 5.4% | 5.3% | 5.2% | 5.0% | 4.9% |
| Cash on Cash Return | 4.4% | 5.0% | 5.6% | 6.2% | 6.9% | 7.5% | 8.2% | 8.9% | 9.6% | 10.3% |
| Return on Equity | 20.8% | 18.9% | 17.4% | 16.2% | 15.2% | 14.4% | 13.7% | 13.1% | 12.6% | 12.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $761,250 | $799,313 | $839,278 | $881,242 | $925,304 | $971,569 | $1,020,148 | $1,071,155 | $1,124,713 | $1,180,949 |
| - Loan Balance | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) | ($543,750) |
| = Equity | $217,500 | $255,563 | $295,528 | $337,492 | $381,554 | $427,819 | $476,398 | $527,405 | $580,963 | $637,199 |
| 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 | $141,375 | $175,631 | $211,600 | $249,368 | $289,024 | $330,662 | $374,383 | $420,290 | $468,492 | $519,104 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $217,500 | $255,563 | $295,528 | $337,492 | $381,554 | $427,819 | $476,398 | $527,405 | $580,963 | $637,199 |
| - Closing Costs | ($53,288) | ($55,952) | ($58,749) | ($61,687) | ($64,771) | ($68,010) | ($71,410) | ($74,981) | ($78,730) | ($82,666) |
| = Proceeds After Sale | $164,213 | $199,611 | $236,779 | $275,805 | $316,783 | $359,809 | $404,987 | $452,424 | $502,233 | $554,532 |
| + Cumulative Cash Flow | $8,945 | $19,090 | $30,463 | $43,096 | $57,017 | $72,258 | $88,850 | $106,825 | $126,216 | $147,057 |
| - Approximate Cash Invested | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) | ($203,000) |
| = Net Profit | ($29,843) | $15,700 | $64,242 | $115,901 | $170,800 | $229,067 | $290,837 | $356,249 | $425,449 | $498,589 |
| Internal Rate of Return | -14.7% | 3.9% | 10.0% | 12.7% | 13.9% | 14.6% | 14.9% | 15.1% | 15.1% | 15.0% |
| Return on Investment | -14.7% | 7.7% | 31.6% | 57.1% | 84.1% | 112.8% | 143.3% | 175.5% | 209.6% | 245.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.