Great Opportunity!
Arizona
3bd • 3ba • Built: 1985
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $33,600 | $34,608 | $35,646 | $36,716 | $37,817 | $38,952 | $40,120 | $41,324 | $42,563 | $43,840 |
| Vacancy Losses | ($2,688) | ($2,769) | ($2,852) | ($2,937) | ($3,025) | ($3,116) | ($3,210) | ($3,306) | ($3,405) | ($3,507) |
| Operating Income | $30,912 | $31,839 | $32,795 | $33,778 | $34,792 | $35,835 | $36,911 | $38,018 | $39,158 | $40,333 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,347) | ($1,397) | ($1,449) | ($1,502) | ($1,558) | ($1,615) | ($1,675) | ($1,737) | ($1,801) | ($1,868) |
| Insurance | ($1,796) | ($1,862) | ($1,931) | ($2,003) | ($2,077) | ($2,154) | ($2,233) | ($2,316) | ($2,402) | ($2,491) |
| 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 | ($648) | ($672) | ($697) | ($723) | ($749) | ($777) | ($806) | ($836) | ($867) | ($899) |
| Maintenance | ($1,680) | ($1,742) | ($1,807) | ($1,873) | ($1,943) | ($2,015) | ($2,089) | ($2,167) | ($2,247) | ($2,330) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,471) | ($5,673) | ($5,883) | ($6,101) | ($6,327) | ($6,561) | ($6,804) | ($7,055) | ($7,316) | ($7,587) |
| 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 | $25,441 | $26,166 | $26,911 | $27,677 | $28,465 | $29,275 | $30,107 | $30,963 | $31,842 | $32,746 |
| - Mortgage Payments | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) | ($23,152) |
| = Cash Flow | $2,289 | $3,014 | $3,760 | $4,526 | $5,313 | $6,123 | $6,955 | $7,811 | $8,690 | $9,594 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $22,450 | $23,573 | $24,751 | $25,989 | $27,288 | $28,653 | $30,085 | $31,589 | $33,169 | $34,827 |
| = Gross Equity Income | $24,739 | $26,587 | $28,511 | $30,514 | $32,601 | $34,776 | $37,040 | $39,400 | $41,859 | $44,422 |
| 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 | 1.8% | 2.4% | 3.0% | 3.6% | 4.2% | 4.9% | 5.5% | 6.2% | 6.9% | 7.6% |
| Return on Equity | 18.4% | 16.8% | 15.6% | 14.6% | 13.8% | 13.1% | 12.6% | 12.1% | 11.6% | 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 | $471,450 | $495,023 | $519,774 | $545,762 | $573,050 | $601,703 | $631,788 | $663,377 | $696,546 | $731,374 |
| - Loan Balance | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) | ($336,750) |
| = Equity | $134,700 | $158,273 | $183,024 | $209,012 | $236,300 | $264,953 | $295,038 | $326,627 | $359,796 | $394,624 |
| 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 | $87,555 | $108,770 | $131,046 | $154,436 | $178,995 | $204,783 | $231,859 | $260,290 | $290,142 | $321,486 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $134,700 | $158,273 | $183,024 | $209,012 | $236,300 | $264,953 | $295,038 | $326,627 | $359,796 | $394,624 |
| - Closing Costs | ($33,002) | ($34,652) | ($36,384) | ($38,203) | ($40,114) | ($42,119) | ($44,225) | ($46,436) | ($48,758) | ($51,196) |
| = Proceeds After Sale | $101,699 | $123,621 | $146,639 | $170,809 | $196,187 | $222,834 | $250,813 | $280,191 | $311,038 | $343,428 |
| + Cumulative Cash Flow | $2,289 | $5,304 | $9,063 | $13,589 | $18,902 | $25,025 | $31,981 | $39,792 | $48,482 | $58,077 |
| - Approximate Cash Invested | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) | ($125,720) |
| = Net Profit | ($21,732) | $3,205 | $29,983 | $58,678 | $89,369 | $122,139 | $157,074 | $194,263 | $233,800 | $275,784 |
| Internal Rate of Return | -17.3% | 1.3% | 7.5% | 10.3% | 11.7% | 12.5% | 12.9% | 13.1% | 13.2% | 13.3% |
| Return on Investment | -17.3% | 2.5% | 23.8% | 46.7% | 71.1% | 97.2% | 124.9% | 154.5% | 186.0% | 219.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.