Currently Occupied - Self Management
Arizona
3bd • 2ba • Built: 1987
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $42,000 | $43,260 | $44,558 | $45,895 | $47,271 | $48,690 | $50,150 | $51,655 | $53,204 | $54,800 |
| Vacancy Losses | ($3,360) | ($3,461) | ($3,565) | ($3,672) | ($3,782) | ($3,895) | ($4,012) | ($4,132) | ($4,256) | ($4,384) |
| Operating Income | $38,640 | $39,799 | $40,993 | $42,223 | $43,490 | $44,794 | $46,138 | $47,522 | $48,948 | $50,416 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,710) | ($1,773) | ($1,839) | ($1,907) | ($1,977) | ($2,051) | ($2,127) | ($2,205) | ($2,287) | ($2,371) |
| Insurance | ($2,280) | ($2,364) | ($2,452) | ($2,543) | ($2,637) | ($2,734) | ($2,835) | ($2,940) | ($3,049) | ($3,162) |
| 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 | ($2,100) | ($2,178) | ($2,258) | ($2,342) | ($2,428) | ($2,518) | ($2,612) | ($2,708) | ($2,808) | ($2,912) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,090) | ($6,315) | ($6,549) | ($6,791) | ($7,043) | ($7,303) | ($7,573) | ($7,854) | ($8,144) | ($8,446) |
| 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 | $32,550 | $33,484 | $34,444 | $35,432 | $36,447 | $37,491 | $38,565 | $39,669 | $40,804 | $41,971 |
| - Mortgage Payments | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) | ($29,391) |
| = Cash Flow | $3,159 | $4,093 | $5,054 | $6,041 | $7,056 | $8,101 | $9,174 | $10,278 | $11,413 | $12,580 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $28,500 | $29,925 | $31,421 | $32,992 | $34,642 | $36,374 | $38,193 | $40,102 | $42,107 | $44,213 |
| = Gross Equity Income | $31,659 | $34,018 | $36,475 | $39,033 | $41,698 | $44,475 | $47,367 | $50,380 | $53,521 | $56,793 |
| Capitalization Rate | 5.4% | 5.3% | 5.2% | 5.1% | 5.0% | 4.9% | 4.8% | 4.7% | 4.6% | 4.5% |
| Cash on Cash Return | 2.0% | 2.6% | 3.2% | 3.8% | 4.4% | 5.1% | 5.7% | 6.4% | 7.2% | 7.9% |
| Return on Equity | 18.5% | 16.9% | 15.7% | 14.7% | 13.9% | 13.2% | 12.6% | 12.2% | 11.7% | 11.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $598,500 | $628,425 | $659,846 | $692,839 | $727,480 | $763,855 | $802,047 | $842,150 | $884,257 | $928,470 |
| - Loan Balance | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) | ($427,500) |
| = Equity | $171,000 | $200,925 | $232,346 | $265,339 | $299,980 | $336,355 | $374,547 | $414,650 | $456,757 | $500,970 |
| 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 | $111,150 | $138,083 | $166,362 | $196,055 | $227,232 | $259,969 | $294,343 | $330,435 | $368,331 | $408,123 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $171,000 | $200,925 | $232,346 | $265,339 | $299,980 | $336,355 | $374,547 | $414,650 | $456,757 | $500,970 |
| - Closing Costs | ($41,895) | ($43,990) | ($46,189) | ($48,499) | ($50,924) | ($53,470) | ($56,143) | ($58,950) | ($61,898) | ($64,993) |
| = Proceeds After Sale | $129,105 | $156,935 | $186,157 | $216,840 | $249,057 | $282,885 | $318,404 | $355,699 | $394,859 | $435,977 |
| + Cumulative Cash Flow | $3,159 | $7,253 | $12,306 | $18,347 | $25,404 | $33,504 | $42,678 | $52,956 | $64,370 | $76,950 |
| - Approximate Cash Invested | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) | ($159,600) |
| = Net Profit | ($27,336) | $4,588 | $38,863 | $75,587 | $114,860 | $156,789 | $201,482 | $249,056 | $299,629 | $353,327 |
| Internal Rate of Return | -17.1% | 1.4% | 7.7% | 10.5% | 11.9% | 12.6% | 13.1% | 13.3% | 13.4% | 13.4% |
| Return on Investment | -17.1% | 2.9% | 24.4% | 47.4% | 72.0% | 98.2% | 126.2% | 156.0% | 187.7% | 221.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.