New Construction Duplex IO
Arkansas
6bd • 3ba • Built: 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 | $36,480 | $37,574 | $38,702 | $39,863 | $41,059 | $42,290 | $43,559 | $44,866 | $46,212 | $47,598 |
| Vacancy Losses | ($2,918) | ($3,006) | ($3,096) | ($3,189) | ($3,285) | ($3,383) | ($3,485) | ($3,589) | ($3,697) | ($3,808) |
| Operating Income | $33,562 | $34,568 | $35,606 | $36,674 | $37,774 | $38,907 | $40,074 | $41,277 | $42,515 | $43,790 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,990) | ($4,138) | ($4,291) | ($4,449) | ($4,614) | ($4,785) | ($4,962) | ($5,145) | ($5,336) | ($5,533) |
| Insurance | ($1,596) | ($1,655) | ($1,716) | ($1,780) | ($1,846) | ($1,914) | ($1,985) | ($2,058) | ($2,134) | ($2,213) |
| 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 | ($730) | ($757) | ($785) | ($814) | ($844) | ($875) | ($907) | ($941) | ($976) | ($1,012) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,316) | ($6,549) | ($6,792) | ($7,043) | ($7,303) | ($7,574) | ($7,854) | ($8,145) | ($8,446) | ($8,758) |
| 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 | $27,246 | $28,019 | $28,814 | $29,631 | $30,470 | $31,333 | $32,220 | $33,132 | $34,069 | $35,032 |
| - Mortgage Payments | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) | ($21,322) |
| = Cash Flow | $5,924 | $6,698 | $7,492 | $8,309 | $9,149 | $10,012 | $10,899 | $11,810 | $12,747 | $13,710 |
| + 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 | $25,874 | $27,645 | $29,487 | $31,404 | $33,398 | $35,474 | $37,634 | $39,882 | $42,223 | $44,659 |
| Capitalization Rate | 6.5% | 6.4% | 6.2% | 6.1% | 6.0% | 5.9% | 5.7% | 5.6% | 5.5% | 5.4% |
| Cash on Cash Return | 5.4% | 6.1% | 6.8% | 7.5% | 8.3% | 9.1% | 9.9% | 10.7% | 11.6% | 12.4% |
| Return on Equity | 21.6% | 19.7% | 18.1% | 16.9% | 15.9% | 15.1% | 14.4% | 13.7% | 13.2% | 12.7% |
| 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 | $5,924 | $12,622 | $20,114 | $28,423 | $37,572 | $47,584 | $58,483 | $70,293 | $83,041 | $96,751 |
| - Approximate Cash Invested | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) | ($110,224) |
| = Net Profit | ($13,926) | $12,253 | $40,200 | $69,988 | $101,688 | $135,380 | $171,142 | $209,059 | $249,218 | $291,711 |
| Internal Rate of Return | -12.6% | 5.6% | 11.5% | 14.0% | 15.2% | 15.8% | 16.1% | 16.2% | 16.2% | 16.1% |
| Return on Investment | -12.6% | 11.1% | 36.5% | 63.5% | 92.3% | 122.8% | 155.3% | 189.7% | 226.1% | 264.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.