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Ten Year Performance Projection

Renovated Fourplex - Four 2BD/1.5BA Townhomes
Arkansas
8bd • 6ba • Built: 1982

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 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($3,311)($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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 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 $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.
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