Occupied Duplex
Arkansas
6bd • 3ba • Built: 1907 • Remodeled: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $33,480 | $34,484 | $35,519 | $36,584 | $37,682 | $38,812 | $39,977 | $41,176 | $42,411 | $43,684 |
| Vacancy Losses | ($2,678) | ($2,759) | ($2,842) | ($2,927) | ($3,015) | ($3,105) | ($3,198) | ($3,294) | ($3,393) | ($3,495) |
| Operating Income | $30,802 | $31,726 | $32,677 | $33,658 | $34,667 | $35,707 | $36,779 | $37,882 | $39,019 | $40,189 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,988) | ($5,172) | ($5,363) | ($5,562) | ($5,768) | ($5,981) | ($6,202) | ($6,432) | ($6,670) | ($6,917) |
| Insurance | ($2,394) | ($2,483) | ($2,574) | ($2,670) | ($2,768) | ($2,871) | ($2,977) | ($3,087) | ($3,202) | ($3,320) |
| 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 | ($670) | ($694) | ($720) | ($747) | ($774) | ($803) | ($833) | ($864) | ($895) | ($929) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($8,051) | ($8,349) | ($8,658) | ($8,978) | ($9,310) | ($9,655) | ($10,012) | ($10,383) | ($10,767) | ($11,165) |
| 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 | $22,751 | $23,377 | $24,020 | $24,679 | $25,357 | $26,053 | $26,767 | $27,499 | $28,252 | $29,024 |
| - Mortgage Payments | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) | ($18,329) |
| = Cash Flow | $4,421 | $5,048 | $5,690 | $6,350 | $7,028 | $7,724 | $8,438 | $9,170 | $9,923 | $10,695 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $19,950 | $20,948 | $21,995 | $23,095 | $24,249 | $25,462 | $26,735 | $28,072 | $29,475 | $30,949 |
| = Gross Equity Income | $24,371 | $25,995 | $27,685 | $29,445 | $31,277 | $33,185 | $35,172 | $37,242 | $39,398 | $41,644 |
| 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 | 3.8% | 4.3% | 4.9% | 5.5% | 6.0% | 6.6% | 7.3% | 7.9% | 8.5% | 9.2% |
| Return on Equity | 20.4% | 18.5% | 17.0% | 15.9% | 14.9% | 14.1% | 13.4% | 12.8% | 12.3% | 11.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $418,950 | $439,898 | $461,892 | $484,987 | $509,236 | $534,698 | $561,433 | $589,505 | $618,980 | $649,929 |
| - Loan Balance | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) | ($299,250) |
| = Equity | $119,700 | $140,648 | $162,642 | $185,737 | $209,986 | $235,448 | $262,183 | $290,255 | $319,730 | $350,679 |
| 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 | $77,805 | $96,658 | $116,453 | $137,238 | $159,063 | $181,978 | $206,040 | $231,304 | $257,832 | $285,686 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $119,700 | $140,648 | $162,642 | $185,737 | $209,986 | $235,448 | $262,183 | $290,255 | $319,730 | $350,679 |
| - Closing Costs | ($29,327) | ($30,793) | ($32,332) | ($33,949) | ($35,647) | ($37,429) | ($39,300) | ($41,265) | ($43,329) | ($45,495) |
| = Proceeds After Sale | $90,374 | $109,855 | $130,310 | $151,788 | $174,340 | $198,019 | $222,883 | $248,989 | $276,401 | $305,184 |
| + Cumulative Cash Flow | $4,421 | $9,469 | $15,160 | $21,510 | $28,538 | $36,262 | $44,699 | $53,869 | $63,792 | $74,487 |
| - Approximate Cash Invested | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) | ($116,209) |
| = Net Profit | ($21,414) | $3,115 | $29,261 | $57,089 | $86,669 | $118,072 | $151,373 | $186,650 | $223,985 | $263,462 |
| Internal Rate of Return | -18.4% | 1.4% | 8.1% | 11.1% | 12.6% | 13.4% | 13.8% | 14.0% | 14.1% | 14.1% |
| Return on Investment | -18.4% | 2.7% | 25.2% | 49.1% | 74.6% | 101.6% | 130.3% | 160.6% | 192.7% | 226.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.