Property Information

IN ESCROW
2 Houses on 1 Parcel
Mobile, AL 36605
IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Gross Rent$15,600$16,068$16,550$17,047$17,558$18,085$18,627$19,186$19,762$20,354
Vacancy Losses($1,248)($1,285)($1,324)($1,364)($1,405)($1,447)($1,490)($1,535)($1,581)($1,628)
Operating Income$14,352$14,783$15,226$15,683$16,153$16,638$17,137$17,651$18,181$18,726
ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Property Taxes($945)($973)($1,003)($1,033)($1,064)($1,096)($1,128)($1,162)($1,197)($1,233)
Insurance($1,260)($1,298)($1,337)($1,377)($1,418)($1,461)($1,505)($1,550)($1,596)($1,644)
Management Fees($1,148)($1,183)($1,218)($1,255)($1,292)($1,331)($1,371)($1,412)($1,454)($1,498)
Leasing/Advertising Fees$0$0$0$0$0$0$0$0$0$0
Association Fees$0$0$0$0$0$0$0$0$0$0
Maintenance($1,248)($1,285)($1,324)($1,364)($1,405)($1,447)($1,490)($1,535)($1,581)($1,628)
Other$0$0$0$0$0$0$0$0$0$0
Operating Expenses($4,601)($4,739)($4,881)($5,028)($5,179)($5,334)($5,494)($5,659)($5,829)($6,003)
Income AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Net Operating Income$9,751$10,043$10,345$10,655$10,975$11,304$11,643$11,992$12,352$12,723
- Mortgage Payments($4,788)($4,788)($4,788)($4,788)($4,788)($4,788)($4,788)($4,788)($4,788)($4,788)
= Cash Flow$4,963$5,255$5,557$5,867$6,187$6,516$6,855$7,204$7,564$7,935
+ Principal Reduction$1,270$1,329$1,390$1,454$1,520$1,590$1,663$1,740$1,820$1,903
+ Appreciation$6,300$6,678$7,079$7,503$7,954$8,431$8,937$9,473$10,041$10,644
= Gross Equity Income$12,533$13,262$14,025$14,824$15,661$16,537$17,455$18,417$19,425$20,481
Capitalization Rate8.8%8.5%8.3%8.0%7.8%7.6%7.4%7.2%7.0%6.8%
Cash on Cash Return15.4%16.3%17.2%18.2%19.2%20.2%21.2%22.3%23.4%24.6%
Return on Equity37.1%31.7%27.9%25.0%22.8%21.0%19.5%18.3%17.3%16.4%
Loan AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Market Value$111,300$117,978$125,057$132,560$140,514$148,945$157,881$167,354$177,395$188,039
- Loan Balance($77,480)($76,151)($74,761)($73,308)($71,787)($70,197)($68,534)($66,794)($64,974)($63,071)
= Equity$33,820$41,827$50,296$59,253$68,727$78,748$89,348$100,560$112,421$124,968
Loan-to-Value Ratio69.6%64.5%59.8%55.3%51.1%47.1%43.4%39.9%36.6%33.5%
Potential Cash-Out Refi$22,690$30,029$37,790$45,997$54,675$63,853$73,559$83,825$94,681$106,164
Sale AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Equity$33,820$41,827$50,296$59,253$68,727$78,748$89,348$100,560$112,421$124,968
- Closing Costs($5,565)($5,899)($6,253)($6,628)($7,026)($7,447)($7,894)($8,368)($8,870)($9,402)
= Proceeds After Sale$28,255$35,928$44,043$52,625$61,701$71,300$81,454$92,192$103,551$115,566
+ Cumulative Cash Flow$4,963$10,218$15,775$21,641$27,828$34,344$41,199$48,403$55,967$63,901
- Initial Cash Invested($32,288)($32,288)($32,288)($32,288)($32,288)($32,288)($32,288)($32,288)($32,288)($32,288)
= Net Profit$931$13,859$27,530$41,978$57,241$73,357$90,365$108,308$127,230$147,180
Internal Rate of Return2.9%20.9%25.6%27.1%27.4%27.2%26.9%26.5%26.0%25.6%
Return on Investment2.9%42.9%85.3%130.0%177.3%227.2%279.9%335.4%394.1%455.8%
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.