| Property Name: | Duplex | Location: | USA | Percentage | Rate | |||||
| Purchase Price: | $234,594 | Down Payment: | $23,459 | 1st Loan (IO): | 80.00% | 6.25% | ||||
| Market Value: | $234,594 | Total Investment: | $24,459 | 2nd Loan (PI) | 10.00% | 9.00% | ||||
| Structure Value: | $175,946 | Monthly Rent: | $1,850 | LTV: | 90.00% | |||||
| Closing Costs: | $1,000 | Blended Rate: | 6.56% | |||||||
| Loan Amount: | $211,135 | Land Allocation: | 25% | Current CAP Rate: | 7.48% | |||||
| Investment Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
| Capital Growth | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
| Property Value | $243,978 | $253,737 | $263,886 | $274,442 | $285,419 | $296,836 | $308,710 | $321,058 | $333,900 | $347,256 |
| Equity | $32,843 | $42,602 | $52,752 | $63,307 | $74,285 | $85,702 | $97,575 | $109,923 | $122,766 | $136,122 |
| Rent Increase | 0% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% |
| Gross Rent | $22,200 | $22,866 | $23,552 | $24,259 | $24,986 | $25,736 | $26,508 | $27,303 | $28,122 | $28,966 |
| Inflation | 0.00% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| Vacancy Allowance | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Management Allowance | 6% | 6% | 6% | 6% | 6% | 6% | 6% | 6% | 6% | 6% |
| Interest Rate | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% | 6.56% |
| Loan Term | 360 | 360 | 360 | 360 | 360 | 360 | 360 | 360 | 360 | 360 |
| P & I Paid (1st & 2nd) | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 | $13,995 |
| Principal Paid (2nd) | $154 | $168 | $183 | $199 | $217 | $237 | $258 | $281 | $306 | $334 |
| Interest Paid (1st & 2nd) | $13,841 | $13,827 | $13,812 | $13,796 | $13,778 | $13,758 | $13,737 | $13,714 | $13,688 | $13,661 |
| Total Property Taxes | $2,304 | $2,362 | $2,421 | $2,481 | $2,543 | $2,607 | $2,672 | $2,739 | $2,807 | $2,877 |
| Hazard Insurance | $1,020 | $1,046 | $1,072 | $1,098 | $1,126 | $1,154 | $1,183 | $1,212 | $1,243 | $1,274 |
| HOA | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance / Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Home Warranty | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Vacancy Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Management Expense | $1,332 | $1,372 | $1,413 | $1,456 | $1,499 | $1,544 | $1,590 | $1,638 | $1,687 | $1,738 |
| Total Property Exp. | $18,497 | $18,606 | $18,718 | $18,831 | $18,946 | $19,063 | $19,182 | $19,303 | $19,426 | $19,550 |
| Pre-Tax Income/Year | $3,703 | $4,260 | $4,834 | $5,428 | $6,040 | $6,673 | $7,326 | $8,000 | $8,697 | $9,416 |
| Depreciation-Building | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 | $6,398 |
| NOI After Depreciation* | -$2,695 | -$2,138 | -$1,564 | -$970 | -$358 | $275 | $928 | $1,602 | $2,299 | $3,018 |
| Monthly Pre-Tax Inc. | $309 | $355 | $403 | $452 | $503 | $556 | $610 | $667 | $725 | $785 |
| Aggregate ROI | 53.50% | 57.31% | 61.26% | 65.35% | 69.58% | 73.96% | 78.49% | 83.19% | 88.06% | 93.10% |
| Return on Equity | 40.00% | 29.71% | 23.82% | 20.01% | 17.34% | 15.37% | 13.85% | 12.66% | 11.68% | 10.88% |
| CAP Rate | 7.19% | 7.13% | 7.07% | 7.00% | 6.94% | 6.88% | 6.82% | 6.76% | 6.70% | 6.65% |