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Ten Year Performance Projection

Currently Occupied
Arizona
3bd • 2ba • Built: 1998

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