STR Near ASU & Old Town Scottsdale
Arizona
4bd • 3ba • Built: 1964
| 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 | ($2,940) | ($3,049) | ($3,162) | ($3,279) | ($3,400) | ($3,526) | ($3,656) | ($3,791) | ($3,932) | ($4,077) |
| Insurance | ($4,410) | ($4,573) | ($4,742) | ($4,918) | ($5,100) | ($5,288) | ($5,484) | ($5,687) | ($5,898) | ($6,116) |
| 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 | ($8,160) | ($8,462) | ($8,775) | ($9,100) | ($9,436) | ($9,786) | ($10,148) | ($10,523) | ($10,912) | ($11,316) |
| Other | ($14,400) | ($14,933) | ($15,485) | ($16,058) | ($16,652) | ($17,269) | ($17,908) | ($18,570) | ($19,257) | ($19,970) |
| Operating Expenses | ($48,270) | ($49,927) | ($51,642) | ($53,417) | ($55,253) | ($57,153) | ($59,118) | ($61,152) | ($63,257) | ($65,434) |
| 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 | $43,530 | $44,627 | $45,748 | $46,896 | $48,069 | $49,269 | $50,496 | $51,750 | $53,033 | $54,344 |
| - Mortgage Payments | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) | ($37,898) |
| = Cash Flow | $5,632 | $6,728 | $7,850 | $8,997 | $10,170 | $11,370 | $12,597 | $13,852 | $15,134 | $16,445 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $36,750 | $38,588 | $40,517 | $42,543 | $44,670 | $46,903 | $49,249 | $51,711 | $54,296 | $57,011 |
| = Gross Equity Income | $42,382 | $45,316 | $48,367 | $51,540 | $54,840 | $58,274 | $61,846 | $65,563 | $69,431 | $73,457 |
| Capitalization Rate | 5.6% | 5.5% | 5.4% | 5.2% | 5.1% | 5.0% | 4.9% | 4.8% | 4.7% | 4.5% |
| Cash on Cash Return | 2.7% | 3.3% | 3.8% | 4.4% | 4.9% | 5.5% | 6.1% | 6.7% | 7.4% | 8.0% |
| Return on Equity | 19.2% | 17.5% | 16.1% | 15.1% | 14.2% | 13.4% | 12.8% | 12.3% | 11.8% | 11.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $771,750 | $810,338 | $850,854 | $893,397 | $938,067 | $984,970 | $1,034,219 | $1,085,930 | $1,140,226 | $1,197,238 |
| - Loan Balance | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) | ($551,250) |
| = Equity | $220,500 | $259,088 | $299,604 | $342,147 | $386,817 | $433,720 | $482,969 | $534,680 | $588,976 | $645,988 |
| 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 | $143,325 | $178,054 | $214,519 | $252,807 | $293,010 | $335,223 | $379,547 | $426,087 | $474,954 | $526,264 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $220,500 | $259,088 | $299,604 | $342,147 | $386,817 | $433,720 | $482,969 | $534,680 | $588,976 | $645,988 |
| - Closing Costs | ($54,023) | ($56,724) | ($59,560) | ($62,538) | ($65,665) | ($68,948) | ($72,395) | ($76,015) | ($79,816) | ($83,807) |
| = Proceeds After Sale | $166,478 | $202,364 | $240,045 | $279,609 | $321,152 | $364,772 | $410,573 | $458,665 | $509,160 | $562,181 |
| + Cumulative Cash Flow | $5,632 | $12,360 | $20,210 | $29,207 | $39,377 | $50,748 | $63,345 | $77,197 | $92,331 | $108,777 |
| - Approximate Cash Invested | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) | ($205,800) |
| = Net Profit | ($33,691) | $8,924 | $54,454 | $103,016 | $154,729 | $209,720 | $268,118 | $330,062 | $395,692 | $465,158 |
| Internal Rate of Return | -16.4% | 2.2% | 8.4% | 11.1% | 12.4% | 13.2% | 13.5% | 13.7% | 13.8% | 13.7% |
| Return on Investment | -16.4% | 4.3% | 26.5% | 50.1% | 75.2% | 101.9% | 130.3% | 160.4% | 192.3% | 226.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.