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($6,281)($6,281)($6,281)($6,281)($6,281)($6,281)($6,281)($6,281)($6,281)($6,281)
= Cash Flow$3,470$3,763$4,064$4,374$4,694$5,023$5,362$5,712$6,071$6,442
+ Principal Reduction$802$859$921$988$1,059$1,136$1,218$1,306$1,400$1,501
+ Appreciation$6,300$6,678$7,079$7,503$7,954$8,431$8,937$9,473$10,041$10,644
= Gross Equity Income$10,572$11,300$12,064$12,866$13,707$14,590$15,517$16,490$17,512$18,586
Capitalization Rate8.8%8.5%8.3%8.0%7.8%7.6%7.4%7.2%7.0%6.8%
Cash on Cash Return10.4%11.3%12.2%13.1%14.1%15.1%16.1%17.2%18.2%19.4%
Return on Equity31.7%27.6%24.7%22.4%20.6%19.2%18.0%17.0%16.2%15.4%
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($77,948)($77,089)($76,168)($75,180)($74,120)($72,985)($71,767)($70,461)($69,062)($67,561)
= Equity$33,352$40,889$48,889$57,380$66,393$75,960$86,114$96,893$108,334$120,478
Loan-to-Value Ratio70.0%65.3%60.9%56.7%52.7%49.0%45.5%42.1%38.9%35.9%
Potential Cash-Out Refi$22,222$29,091$36,383$44,124$52,342$61,065$70,326$80,157$90,594$101,674
Sale AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Equity$33,352$40,889$48,889$57,380$66,393$75,960$86,114$96,893$108,334$120,478
- 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$27,787$34,990$42,636$50,752$59,368$68,513$78,220$88,525$99,464$111,076
+ Cumulative Cash Flow$3,470$7,233$11,296$15,671$20,365$25,388$30,750$36,461$42,533$48,974
- Initial Cash Invested($33,272)($33,272)($33,272)($33,272)($33,272)($33,272)($33,272)($33,272)($33,272)($33,272)
= Net Profit($2,015)$8,951$20,661$33,151$46,460$60,628$75,698$91,714$108,725$126,779
Internal Rate of Return-6.1%13.3%19.0%21.2%22.0%22.3%22.2%22.1%21.8%21.6%
Return on Investment-6.1%26.9%62.1%99.6%139.6%182.2%227.5%275.7%326.8%381.0%
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.