2 Houses on 1 Parcel
Mobile, AL 36605
Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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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 |
Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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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 Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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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 Rate | 8.8% | 8.5% | 8.3% | 8.0% | 7.8% | 7.6% | 7.4% | 7.2% | 7.0% | 6.8% |
Cash on Cash Return | 10.4% | 11.3% | 12.2% | 13.1% | 14.1% | 15.1% | 16.1% | 17.2% | 18.2% | 19.4% |
Return on Equity | 31.7% | 27.6% | 24.7% | 22.4% | 20.6% | 19.2% | 18.0% | 17.0% | 16.2% | 15.4% |
Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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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 Ratio | 70.0% | 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 Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
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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.