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Ten Year Performance Projection

Renovated Fourplex - Four 2BD/1.5BA Townhomes
Arkansas
8bd • 6ba • Built: 1972 • Remodeled: 2024

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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.
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