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Ten Year Performance Projection

Great Opportunity!
Arizona
3bd • 3ba • Built: 1985

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