Renovated Fourplex - Four 2BD/1.5BA Townhomes
Arkansas
8bd • 6ba • Built: 1972 • Remodeled: 2024
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $62,520 | $64,396 | $66,327 | $68,317 | $70,367 | $72,478 | $74,652 | $76,892 | $79,198 | $81,574 |
| Vacancy Losses | ($5,002) | ($5,152) | ($5,306) | ($5,465) | ($5,629) | ($5,798) | ($5,972) | ($6,151) | ($6,336) | ($6,526) |
| Operating Income | $57,518 | $59,244 | $61,021 | $62,852 | $64,737 | $66,680 | $68,680 | $70,740 | $72,863 | $75,048 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($4,500) | ($4,667) | ($4,839) | ($5,018) | ($5,204) | ($5,396) | ($5,596) | ($5,803) | ($6,018) | ($6,241) |
| Insurance | ($3,600) | ($3,733) | ($3,871) | ($4,015) | ($4,163) | ($4,317) | ($4,477) | ($4,643) | ($4,814) | ($4,992) |
| 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 | ($3,126) | ($3,242) | ($3,362) | ($3,486) | ($3,615) | ($3,749) | ($3,887) | ($4,031) | ($4,180) | ($4,335) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($11,228) | ($11,643) | ($12,074) | ($12,521) | ($12,984) | ($13,465) | ($13,963) | ($14,480) | ($15,015) | ($15,571) |
| 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 | $46,290 | $47,601 | $48,947 | $50,331 | $51,753 | $53,215 | $54,717 | $56,261 | $57,847 | $59,478 |
| - Mortgage Payments | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) |
| = Cash Flow | $12,159 | $13,469 | $14,815 | $16,199 | $17,621 | $19,083 | $20,585 | $22,129 | $23,716 | $25,346 |
| + Principal Reduction | $5,030 | $5,367 | $5,726 | $6,110 | $6,519 | $6,955 | $7,421 | $7,918 | $8,448 | $9,014 |
| + Appreciation | $30,000 | $31,500 | $33,075 | $34,729 | $36,465 | $38,288 | $40,203 | $42,213 | $44,324 | $46,540 |
| = Gross Equity Income | $47,189 | $50,335 | $53,616 | $57,038 | $60,605 | $64,327 | $68,209 | $72,260 | $76,488 | $80,900 |
| Capitalization Rate | 7.3% | 7.2% | 7.0% | 6.9% | 6.8% | 6.6% | 6.5% | 6.3% | 6.2% | 6.1% |
| Cash on Cash Return | 7.6% | 8.5% | 9.3% | 10.2% | 11.1% | 12.0% | 12.9% | 13.9% | 14.9% | 15.9% |
| Return on Equity | 25.5% | 22.7% | 20.6% | 18.9% | 17.6% | 16.5% | 15.6% | 14.8% | 14.2% | 13.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $630,000 | $661,500 | $694,575 | $729,304 | $765,769 | $804,057 | $844,260 | $886,473 | $930,797 | $977,337 |
| - Loan Balance | ($444,970) | ($439,604) | ($433,877) | ($427,768) | ($421,249) | ($414,294) | ($406,873) | ($398,955) | ($390,506) | ($381,492) |
| = Equity | $185,030 | $221,897 | $260,698 | $301,536 | $344,520 | $389,764 | $437,388 | $487,519 | $540,291 | $595,845 |
| 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 | $122,030 | $155,747 | $191,240 | $228,606 | $267,943 | $309,358 | $352,962 | $398,871 | $447,211 | $498,111 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $185,030 | $221,897 | $260,698 | $301,536 | $344,520 | $389,764 | $437,388 | $487,519 | $540,291 | $595,845 |
| - Closing Costs | ($44,100) | ($46,305) | ($48,620) | ($51,051) | ($53,604) | ($56,284) | ($59,098) | ($62,053) | ($65,156) | ($68,414) |
| = Proceeds After Sale | $140,930 | $175,592 | $212,077 | $250,485 | $290,916 | $333,480 | $378,289 | $425,466 | $475,135 | $527,431 |
| + Cumulative Cash Flow | $12,159 | $25,627 | $40,443 | $56,642 | $74,263 | $93,347 | $113,932 | $136,061 | $159,777 | $185,123 |
| - Approximate Cash Invested | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) | ($159,000) |
| = Net Profit | ($5,911) | $42,219 | $93,520 | $148,127 | $206,179 | $267,826 | $333,221 | $402,527 | $475,912 | $553,554 |
| Internal Rate of Return | -3.7% | 12.9% | 17.8% | 19.5% | 20.1% | 20.3% | 20.2% | 20.0% | 19.8% | 19.5% |
| Return on Investment | -3.7% | 26.6% | 58.8% | 93.2% | 129.7% | 168.4% | 209.6% | 253.2% | 299.3% | 348.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.