The Leverage Play

	A	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R	S	T
1	Operational Leverage
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3					1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
4	Sales	100,000			100,000	150,000	225,000	337,500	506,250	759,375	797,344	837,211	879,071	923,025	969,176	1,017,635	1,068,517	1,121,943	1,178,040
5					20%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%	20%
6	Net profit margin	20%			20,000	30,000	45,000	67,500	101,250	151,875	159,469	167,442	175,814	184,605	193,835	203,527	213,703	224,389	235,608
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8				Portfolio Contribution	4,000	6,000	9,000	13,500	50,625	75,938	79,734	83,721	87,907	92,303	96,918	101,764	106,852	112,194	117,804
9	Initial Investment	-10,000		Portfolio Value	-6,000	-480	8,482	22,660	75,098	157,043	249,341	353,009	469,157	598,992	743,830	905,099	1,084,359	1,283,302	1,503,770
10	Yearly Growth (1-5)	50%
11	Yearly growth (long term)	5%
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13	Reinvested (year 1-5)	80%		Reinvested	80%	80%	80%	80%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%
14	Reinvested (after year 5)	50%		Growth	50%	50%	50%	50%	50%	5%	5%	5%	5%	5%	5%	5%	5%	5%	5%
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16	Portfolio Return	8%
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18		5 years	10 years	15 years
19	Portfolio Value	75,098	598,992	1,503,770
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22	Financial Leverage
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24					1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
25	Property Value	600,000		Value	600,000	624,000	648,960	674,918	701,915	729,992	759,191	789,559	821,141	853,987	888,147	923,672	960,619	999,044	1,039,006
26	Down Payment %	20%		Net Cash Flow	8,597
27	Down Payment $	120,000
28	Mortgage	480,000		Yield	6.14%
29	Duration	25
30	Interest Rate	4.00%
31	Monthly Payment	2,534
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33	Initial Renovation	20,000
34	Monthly Rental Income	3,500
35	Yearly expenses	3,000
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37	Net Operating Income	8,597
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39	Average yearly appreciation	4%
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41	Initial Investment	140,000
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