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Acquisition Information
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Purchase Price$ 800,000
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Down payment (100% if cash purchase)
60% $ 480,000
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Mortgage Amount$ 320,000
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Closing Costs / Inspection / Etc.
$ 0
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Rehabilitation/ Improvements
$
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Total Cash out of Pocket
$ 480,000
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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$ 12,000 144,000 146,880 149,818 152,814 155,870 158,988 162,167 165,411 168,719 172,093
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Vacancy & Collection Loss
 0.00 % 0 0 0 0 0 0 0 0 0 0
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Effective Annual Rent
 144,000 146,880 149,818 152,814 155,870 158,988 162,167 165,411 168,719 172,093
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Management 4.00
% of Effective Annual Rent
 5,760 5,875 5,993 6,113 6,235 6,360 6,487 6,616 6,749 6,884
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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
 8.00
% of Gross Rent
 11,520 11,750 11,985 12,225 12,470 12,719 12,973 13,233 13,498 13,767
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HOA$ 200 Monthly 2,400 2,448 2,497 2,547 2,598 2,650 2,703 2,757 2,812 2,868
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Property Tax$ 34,000 Annual 34,000 34,680 35,374 36,081 36,803 37,539 38,290 39,055 39,836 40,633
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Miscellaneous$ 50 Monthly 600 612 624 637 649 662 676 689 703 717
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Total Operating Expenses
 57,780 58,936 60,114 61,317 62,543 63,794 65,070 66,371 67,698 69,052
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Net Operating Income
 86,220 87,944 89,703 91,497 93,327 95,194 97,098 99,040 101,020 103,041
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Mortgage Payment and Cash Flows
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Interest Rate 5.00 %
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Loan Term 10 Years
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Monthly Payment$3,394.10
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Annual Debt Service (Principal & Interest)
 40,729 40,729 40,729 40,729 40,729 40,729 40,729 40,729 40,729 40,729
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Cash Flow 45,491 47,215 48,974 50,768 52,598 54,465 56,369 58,311 60,291 62,312
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Cash on Cash Return
9.48% 9.84% 10.20% 10.58% 10.96% 11.35% 11.74% 12.15% 12.56% 12.98%
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Principal Paydown during the year
 25,304 26,598 27,959 29,390 30,893 32,474 34,135 35,882 37,717 39,647
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Cash Flow + Principal Paydown
 70,795 73,814 76,933 80,158 83,491 86,939 90,504 94,192 98,009 101,959
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Cash on Cash Return Incl. Principal Paydown
14.75% 15.38% 16.03% 16.70% 17.39% 18.11% 18.85% 19.62% 20.42% 21.24%
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Property Value 5.00
% annual increase
 840,000 882,000 926,100 972,405 1,021,025 1,072,077 1,125,680 1,181,964 1,241,063 1,303,116
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Loan Balance 294,696 268,098 240,139 210,749 179,856 147,382 113,246 77,365 39,647 (0)
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Equity in Property 545,304 613,902 685,961 761,656 841,170 924,695 1,012,434 1,104,600 1,201,415 1,303,116
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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(480,000)
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Cash Flow 45,491 47,215 48,974 50,768 52,598 54,465 56,369 58,311 60,291 62,312
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Sale Proceeds 1,303,116
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Sale Costs (commissions, etc.)
 6.00
% of sale price
(78,187)
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Repay Loan 0
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Net Cash Flow(480,000) 45,491 47,215 48,974 50,768 52,598 54,465 56,369 58,311 60,291 1,287,240
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IRR of Investment
17.46%
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