Currently Occupied
Arizona
3bd • 2ba • Built: 1998
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $28,800 | $29,664 | $30,554 | $31,471 | $32,415 | $33,387 | $34,389 | $35,420 | $36,483 | $37,577 |
| Vacancy Losses | ($2,304) | ($2,373) | ($2,444) | ($2,518) | ($2,593) | ($2,671) | ($2,751) | ($2,834) | ($2,919) | ($3,006) |
| Operating Income | $26,496 | $27,291 | $28,110 | $28,953 | $29,821 | $30,716 | $31,638 | $32,587 | $33,564 | $34,571 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($844) | ($875) | ($908) | ($941) | ($976) | ($1,012) | ($1,050) | ($1,088) | ($1,129) | ($1,170) |
| Insurance | ($2,532) | ($2,626) | ($2,723) | ($2,824) | ($2,928) | ($3,036) | ($3,149) | ($3,265) | ($3,386) | ($3,511) |
| 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 | ($1,440) | ($1,493) | ($1,549) | ($1,606) | ($1,665) | ($1,727) | ($1,791) | ($1,857) | ($1,926) | ($1,997) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,816) | ($4,994) | ($5,179) | ($5,371) | ($5,569) | ($5,775) | ($5,989) | ($6,211) | ($6,440) | ($6,679) |
| 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 | $21,680 | $22,297 | $22,931 | $23,582 | $24,252 | $24,941 | $25,649 | $26,376 | $27,124 | $27,893 |
| - Mortgage Payments | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) | ($21,759) |
| = Cash Flow | ($79) | $537 | $1,171 | $1,823 | $2,493 | $3,181 | $3,889 | $4,617 | $5,365 | $6,133 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $21,100 | $22,155 | $23,263 | $24,426 | $25,647 | $26,930 | $28,276 | $29,690 | $31,174 | $32,733 |
| = Gross Equity Income | $21,021 | $22,692 | $24,434 | $26,249 | $28,140 | $30,111 | $32,165 | $34,307 | $36,539 | $38,866 |
| Capitalization Rate | 4.9% | 4.8% | 4.7% | 4.6% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% | 4.1% |
| Cash on Cash Return | -0.1% | 0.5% | 1.0% | 1.5% | 2.1% | 2.7% | 3.3% | 3.9% | 4.5% | 5.2% |
| Return on Equity | 16.6% | 15.3% | 14.2% | 13.4% | 12.7% | 12.1% | 11.6% | 11.2% | 10.8% | 10.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $443,100 | $465,255 | $488,518 | $512,944 | $538,591 | $565,520 | $593,796 | $623,486 | $654,661 | $687,394 |
| - Loan Balance | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) | ($316,500) |
| = Equity | $126,600 | $148,755 | $172,018 | $196,444 | $222,091 | $249,020 | $277,296 | $306,986 | $338,161 | $370,894 |
| 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 | $82,290 | $102,230 | $123,166 | $145,149 | $168,232 | $192,468 | $217,917 | $244,638 | $272,694 | $302,154 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $126,600 | $148,755 | $172,018 | $196,444 | $222,091 | $249,020 | $277,296 | $306,986 | $338,161 | $370,894 |
| - Closing Costs | ($31,017) | ($32,568) | ($34,196) | ($35,906) | ($37,701) | ($39,586) | ($41,566) | ($43,644) | ($45,826) | ($48,118) |
| = Proceeds After Sale | $95,583 | $116,187 | $137,822 | $160,538 | $184,389 | $209,434 | $235,731 | $263,342 | $292,334 | $322,776 |
| + Cumulative Cash Flow | ($79) | $458 | $1,629 | $3,452 | $5,945 | $9,126 | $13,016 | $17,632 | $22,997 | $29,130 |
| - Approximate Cash Invested | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) | ($118,160) |
| = Net Profit | ($22,656) | ($1,515) | $21,291 | $45,830 | $72,174 | $100,400 | $130,586 | $162,814 | $197,171 | $233,746 |
| Internal Rate of Return | -19.2% | -0.6% | 5.7% | 8.6% | 10.1% | 10.9% | 11.4% | 11.7% | 11.8% | 11.9% |
| Return on Investment | -19.2% | -1.3% | 18.0% | 38.8% | 61.1% | 85.0% | 110.5% | 137.8% | 166.9% | 197.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.