ABCDEFGHIJKLMNOPQR
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Acquisition Information
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Purchase Price$ 500,000
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Down payment (100% if cash purchase)
70% $ 350,000
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Mortgage Amount$ 150,000
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Closing Costs / Inspection / Etc.
$ 5,000
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Rehabilitation/ Improvements
$ 2,000
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Total Cash out of Pocket
$ 357,000
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ANNUAL RENT / EXPENSE INCREASE
 2.00 %Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
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Monthly Rent$ 2,800 33,600 34,272 34,957 35,657 36,370 37,097 37,839 38,596 39,368 40,155
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Vacancy & Collection Loss
 5.00 % 1,680 1,714 1,748 1,783 1,818 1,855 1,892 1,930 1,968 2,008
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Effective Annual Rent
 31,920 32,558 33,210 33,874 34,551 35,242 35,947 36,666 37,399 38,147
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Management 4.00
% of Effective Annual Rent
 1,277 1,302 1,328 1,355 1,382 1,410 1,438 1,467 1,496 1,526
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Insurance$ 3,500
annual premium
 3,500 3,570 3,641 3,714 3,789 3,864 3,942 4,020 4,101 4,183
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Maintenance / Repairs / Other
 10.00
% of Gross Rent
 3,360 3,427 3,496 3,566 3,637 3,710 3,784 3,860 3,937 4,016
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HOA$ 100 Monthly 1,200 1,224 1,248 1,273 1,299 1,325 1,351 1,378 1,406 1,434
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Property Tax$ 3,500 Annual 3,500 3,570 3,641 3,714 3,789 3,864 3,942 4,020 4,101 4,183
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Miscellaneous$ 250 Monthly 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585
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Total Operating Expenses
 15,837 16,154 16,477 16,806 17,142 17,485 17,835 18,192 18,555 18,926
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Net Operating Income
 16,083 16,405 16,733 17,068 17,409 17,757 18,112 18,475 18,844 19,221
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Mortgage Payment and Cash Flows
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Interest Rate 6.50 %
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Loan Term 30 Years
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Monthly Payment$948.10
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Annual Debt Service (Principal & Interest)
 11,377 11,377 11,377 11,377 11,377 11,377 11,377 11,377 11,377 11,377
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Cash Flow 4,706 5,028 5,356 5,690 6,032 6,380 6,735 7,097 7,467 7,844
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Cash on Cash Return
1.32% 1.41% 1.50% 1.59% 1.69% 1.79% 1.89% 1.99% 2.09% 2.20%
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Principal Paydown during the year
 1,677 1,789 1,909 2,037 2,173 2,318 2,474 2,639 2,816 3,005
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Cash Flow + Principal Paydown
 6,383 6,817 7,264 7,727 8,205 8,698 9,209 9,737 10,283 10,848
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Cash on Cash Return Incl. Principal Paydown
1.79% 1.91% 2.03% 2.16% 2.30% 2.44% 2.58% 2.73% 2.88% 3.04%
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Property Value 5.00
% annual increase
 525,000 551,250 578,813 607,753 638,141 670,048 703,550 738,728 775,664 814,447
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Loan Balance 148,323 146,535 144,626 142,589 140,416 138,098 135,624 132,985 130,169 127,164
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Equity in Property 376,677 404,715 434,187 465,164 497,724 531,950 567,926 605,743 645,495 687,283
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IRR and Summary of Cash Flows
InitialYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
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Initial Investment, net(357,000)
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Cash Flow 4,706 5,028 5,356 5,690 6,032 6,380 6,735 7,097 7,467 7,844
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Sale Proceeds 814,447
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Sale Costs (commissions, etc.)
 6.00
% of sale price
(48,867)
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Repay Loan(127,164)
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Net Cash Flow(357,000) 4,706 5,028 5,356 5,690 6,032 6,380 6,735 7,097 7,467 646,260
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IRR of Investment
7.31%
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