Currently lease to own in place
Arizona
3bd • 2ba • 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 | $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 | ($1,884) | ($1,954) | ($2,026) | ($2,101) | ($2,179) | ($2,259) | ($2,343) | ($2,430) | ($2,519) | ($2,613) |
| Insurance | ($2,355) | ($2,442) | ($2,532) | ($2,626) | ($2,723) | ($2,824) | ($2,929) | ($3,037) | ($3,149) | ($3,266) |
| 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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,239) | ($4,396) | ($4,558) | ($4,727) | ($4,902) | ($5,083) | ($5,272) | ($5,467) | ($5,669) | ($5,879) |
| 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 | $34,401 | $35,403 | $36,435 | $37,496 | $38,588 | $39,711 | $40,867 | $42,056 | $43,279 | $44,538 |
| - Mortgage Payments | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) | ($26,793) |
| = Cash Flow | $7,608 | $8,610 | $9,641 | $10,702 | $11,794 | $12,918 | $14,073 | $15,262 | $16,486 | $17,744 |
| + Principal Reduction | $3,948 | $4,213 | $4,495 | $4,796 | $5,117 | $5,460 | $5,826 | $6,216 | $6,632 | $7,076 |
| + Appreciation | $23,550 | $24,728 | $25,964 | $27,262 | $28,625 | $30,056 | $31,559 | $33,137 | $34,794 | $36,534 |
| = Gross Equity Income | $35,106 | $37,550 | $40,100 | $42,760 | $45,537 | $48,434 | $51,458 | $54,615 | $57,912 | $61,354 |
| Capitalization Rate | 7.0% | 6.8% | 6.7% | 6.5% | 6.4% | 6.3% | 6.2% | 6.0% | 5.9% | 5.8% |
| Cash on Cash Return | 6.1% | 6.9% | 7.7% | 8.6% | 9.4% | 10.3% | 11.3% | 12.2% | 13.2% | 14.2% |
| Return on Equity | 24.2% | 21.6% | 19.6% | 18.1% | 16.8% | 15.8% | 15.0% | 14.3% | 13.7% | 13.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $494,550 | $519,278 | $545,241 | $572,503 | $601,129 | $631,185 | $662,744 | $695,882 | $730,676 | $767,209 |
| - Loan Balance | ($349,302) | ($345,089) | ($340,594) | ($335,798) | ($330,681) | ($325,221) | ($319,395) | ($313,180) | ($306,548) | ($299,472) |
| = Equity | $145,248 | $174,189 | $204,647 | $236,706 | $270,448 | $305,964 | $343,349 | $382,702 | $424,128 | $467,738 |
| Loan-to-Value Ratio | 70.6% | 66.5% | 62.5% | 58.7% | 55.0% | 51.5% | 48.2% | 45.0% | 42.0% | 39.0% |
| Potential Cash-Out Refi | $95,793 | $122,261 | $150,123 | $179,455 | $210,335 | $242,846 | $277,074 | $313,114 | $351,060 | $391,017 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $145,248 | $174,189 | $204,647 | $236,706 | $270,448 | $305,964 | $343,349 | $382,702 | $424,128 | $467,738 |
| - Closing Costs | ($34,619) | ($36,349) | ($38,167) | ($40,075) | ($42,079) | ($44,183) | ($46,392) | ($48,712) | ($51,147) | ($53,705) |
| = Proceeds After Sale | $110,630 | $137,839 | $166,481 | $196,630 | $228,369 | $261,781 | $296,957 | $333,990 | $372,980 | $414,033 |
| + Cumulative Cash Flow | $7,608 | $16,218 | $25,859 | $36,561 | $48,356 | $61,273 | $75,347 | $90,609 | $107,095 | $124,839 |
| - Approximate Cash Invested | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) | ($124,815) |
| = Net Profit | ($6,577) | $29,242 | $67,525 | $108,377 | $151,909 | $198,239 | $247,488 | $299,784 | $355,260 | $414,057 |
| Internal Rate of Return | -5.3% | 11.4% | 16.3% | 18.2% | 18.9% | 19.1% | 19.0% | 18.9% | 18.7% | 18.4% |
| Return on Investment | -5.3% | 23.4% | 54.1% | 86.8% | 121.7% | 158.8% | 198.3% | 240.2% | 284.6% | 331.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.