Renovated Fourplex - Four 2BD/1.5BA Townhomes
Arkansas
8bd • 6ba • Built: 1982
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $66,228 | $68,215 | $70,261 | $72,369 | $74,540 | $76,776 | $79,080 | $81,452 | $83,896 | $86,413 |
| Vacancy Losses | ($5,298) | ($5,457) | ($5,621) | ($5,790) | ($5,963) | ($6,142) | ($6,326) | ($6,516) | ($6,712) | ($6,913) |
| Operating Income | $60,930 | $62,758 | $64,640 | $66,580 | $68,577 | $70,634 | $72,753 | $74,936 | $77,184 | $79,500 |
| 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 | ($3,311) | ($3,434) | ($3,561) | ($3,693) | ($3,829) | ($3,971) | ($4,118) | ($4,270) | ($4,428) | ($4,592) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($11,413) | ($11,836) | ($12,274) | ($12,728) | ($13,199) | ($13,687) | ($14,193) | ($14,719) | ($15,263) | ($15,828) |
| 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 | $49,516 | $50,922 | $52,367 | $53,852 | $55,378 | $56,947 | $58,560 | $60,217 | $61,921 | $63,672 |
| - Mortgage Payments | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) | ($34,132) |
| = Cash Flow | $15,385 | $16,790 | $18,235 | $19,720 | $21,247 | $22,816 | $24,428 | $26,086 | $27,789 | $29,540 |
| + 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 | $50,414 | $53,657 | $57,036 | $60,558 | $64,231 | $68,059 | $72,052 | $76,217 | $80,561 | $85,094 |
| Capitalization Rate | 7.9% | 7.7% | 7.5% | 7.4% | 7.2% | 7.1% | 6.9% | 6.8% | 6.7% | 6.5% |
| Cash on Cash Return | 9.7% | 10.6% | 11.5% | 12.4% | 13.4% | 14.3% | 15.4% | 16.4% | 17.5% | 18.6% |
| Return on Equity | 27.2% | 24.2% | 21.9% | 20.1% | 18.6% | 17.5% | 16.5% | 15.6% | 14.9% | 14.3% |
| 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 | $15,385 | $32,175 | $50,410 | $70,130 | $91,377 | $114,192 | $138,620 | $164,706 | $192,495 | $222,035 |
| - 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 | ($2,686) | $48,766 | $103,487 | $161,615 | $223,293 | $288,672 | $357,910 | $431,172 | $508,630 | $590,466 |
| Internal Rate of Return | -1.7% | 14.9% | 19.7% | 21.3% | 21.9% | 22.0% | 21.8% | 21.6% | 21.3% | 21.0% |
| Return on Investment | -1.7% | 30.7% | 65.1% | 101.6% | 140.4% | 181.6% | 225.1% | 271.2% | 319.9% | 371.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.