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Ten Year Performance Projection

Unique House, Trailer and Shop w/ Seperate Tenants
Arkansas
6bd • 5ba • Built: 1940 • Remodeled: 2025

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Projected Rent $43,800$45,114$46,467$47,861$49,297$50,776$52,299$53,868$55,485$57,149
Vacancy Losses ($3,504)($3,609)($3,717)($3,829)($3,944)($4,062)($4,184)($4,309)($4,439)($4,572)
Operating Income $40,296$41,505$42,750$44,033$45,354$46,714$48,116$49,559$51,046$52,577
Estimated ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Property Taxes($2,738)($2,839)($2,944)($3,053)($3,166)($3,283)($3,404)($3,530)($3,661)($3,796)
Insurance($2,190)($2,271)($2,355)($2,442)($2,533)($2,626)($2,723)($2,824)($2,929)($3,037)
Management Fees$0$0$0$0$0$0$0$0$0$0
Leasing/Advertising Fees($2)($2)($2)($2)($2)($2)($2)($3)($3)($3)
Association Fees$0$0$0$0$0$0$0$0$0$0
Maintenance($2,190)($2,271)($2,355)($2,442)($2,533)($2,626)($2,723)($2,824)($2,929)($3,037)
Other$0$0$0$0$0$0$0$0$0$0
Operating Expenses ($7,120)($7,383)($7,656)($7,939)($8,233)($8,538)($8,854)($9,181)($9,521)($9,873)
Income AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Net Operating Income $33,177$34,122$35,094$36,093$37,120$38,176$39,262$40,378$41,525$42,704
- Mortgage Payments($13,842)($13,842)($13,842)($13,842)($13,842)($13,842)($13,842)($13,842)($13,842)($13,842)
= Cash Flow $19,334$20,280$21,252$22,251$23,278$24,334$25,420$26,536$27,683$28,862
+ Principal Reduction $2,040$2,176$2,322$2,478$2,644$2,821$3,010$3,211$3,426$3,656
+ Appreciation $18,250$19,163$20,121$21,127$22,183$23,292$24,457$25,680$26,964$28,312
= Gross Equity Income $39,624$41,619$43,694$45,855$48,105$50,447$52,886$55,426$58,072$60,829
Capitalization Rate 8.7%8.5%8.3%8.1%8.0%7.8%7.6%7.5%7.3%7.2%
Cash on Cash Return 10.1%10.6%11.1%11.7%12.2%12.8%13.3%13.9%14.5%15.1%
Return on Equity 19.5%18.6%17.7%17.0%16.3%15.7%15.2%14.7%14.2%13.8%
Loan AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Market Value $383,250$402,413$422,533$443,660$465,843$489,135$513,592$539,271$566,235$594,547
- Loan Balance ($180,460)($178,284)($175,962)($173,484)($170,840)($168,020)($165,010)($161,799)($158,373)($154,717)
= Equity $202,790$224,129$246,571$270,176$295,002$321,115$348,582$377,472$407,862$439,829
Loan-to-Value Ratio 47.1%44.3%41.6%39.1%36.7%34.4%32.1%30.0%28.0%26.0%
Potential Cash-Out Refi $164,465$183,887$204,318$225,810$248,418$272,202$297,222$323,545$351,239$380,375
Sale AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Equity $202,790$224,129$246,571$270,176$295,002$321,115$348,582$377,472$407,862$439,829
- Closing Costs ($26,828)($28,169)($29,577)($31,056)($32,609)($34,239)($35,951)($37,749)($39,636)($41,618)
= Proceeds After Sale $175,962$195,960$216,994$239,120$262,393$286,876$312,630$339,723$368,226$398,211
+ Cumulative Cash Flow $19,334$39,614$60,866$83,117$106,395$130,729$156,149$182,684$210,367$239,228
- Approximate Cash Invested($190,713)($190,713)($190,713)($190,713)($190,713)($190,713)($190,713)($190,713)($190,713)($190,713)
= Net Profit $4,584$44,861$87,147$131,524$178,076$226,892$278,066$331,695$387,880$446,727
Internal Rate of Return 2.4%11.7%14.6%15.8%16.4%16.7%16.8%16.9%16.8%16.8%
Return on Investment 2.4%23.5%45.7%69.0%93.4%119.0%145.8%173.9%203.4%234.2%
*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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