Cost Assumptions Financing Assumptions Revenue Assumptions

Purchase Price $55,000 Downpayment 20% Monthly Rent

Land Value (25%) $13,750 Finance Amt $44,000 Vacancy Rate
Building Value (75%) $41,250 Downpayment Amt $11,000
Improvements $6,000 Interest Rate 6.5% Cash Flow & ROI
Closing Costs $2,750 Mortgage (Years) 30 Annual Cash Flow
Total Cost $63,750 Mortgage Payment $278 Cash ROI
Cash Outlay $19,750 Total ROI

Year 1 Year 2 Year 3 Year 4 Year 5

Annual Revenue Increase 2% 0.0% 2.0% 2.0% 2.0% 2.0%
Annual Operating Expense Increase 2% 0.0% 2.0% 2.0% 2.0% 2.0%

Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Revenues
Rental Income 925 11,100 11,322 11,548 11,779 12,015
Vacancy/Loss Rate 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%
Vacancy/Loss Value (77) (925) (943) (962) (982) (1,001)
Gross Income 848 10,175 10,379 10,586 10,798 11,014

Expenses
Property Taxes Annual 1,000 1,000 1,020 1,040 1,061 1,082
Insurance Annual 580 580 592 603 616 628
Maintenance & Repairs Annual 1,000 1,000 1,020 1,040 1,061 1,082
Utilities Annual 0 0 0 0 0 0
Advertising Annual 100 100 102 104 106 108
Administrative Annual 725 725 740 754 769 785
Variable Cost PM (% Income) 12% 1,221 1,245 1,270 1,296 1,322
Fixed Cost PM Annual 0 0 0 0 0 0
Other 1 Annual 0 0 0 0 0 0
Other 2 Monthly 0 0 0 0 0 0
Total Expenses 4,626 4,719 4,813 4,909 5,007
Expenses (Incl Vacancy) as % of Gross Income 50.01% 50.0% 50.0% 50.0% 50.0%

Net Operating Income (NOI) 5,549 5,660 5,773 5,889 6,006

Cash Flow
NOI (Cash Available) 462 5,549 5,660 5,773 5,889 6,006
Mortgage 278 3,337 3,337 3,337 3,337 3,337
Total Cash Flow 184 2,212 2,323 2,436 2,551 2,669
Cash ROI 11.20% 11.76% 12.33% 12.92% 13.51%
Equity Accrued 492 525 560 597 637
Total Return 2,704 2,847 2,996 3,149 3,307
Total ROI 13.69% 14.42% 15.17% 15.94% 16.74%
Cash Flow / Mortgage Ratio 166% 170% 173% 176% 180%

Total Equity Accrued 492 1,017 1,576 2,174 2,811

Loan Payoff Amount $43,508 $42,983 $42,424 $41,826 $41,189
 Revenue Assumptions
Monthly Rent $925
Vacancy Rate 8.3%

Cash Flow & ROI

Annual Cash Flow $2,212
Cash ROI 11.20%
Total ROI 13.69%

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14

2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14

12,255 12,500 12,750 13,005 13,266 13,531 13,801 14,077 14,359

8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%
(1,021) (1,042) (1,062) (1,084) (1,105) (1,128) (1,150) (1,173) (1,197)
11,234 11,459 11,688 11,922 12,160 12,403 12,651 12,904 13,162

1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294

640 653 666 680 693 707 721 736 750
1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294
0 0 0 0 0 0 0 0 0
110 113 115 117 120 122 124 127 129
800 816 833 849 866 884 901 919 938
1,348 1,375 1,403 1,431 1,459 1,488 1,518 1,549 1,579
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
5,107 5,210 5,314 5,420 5,529 5,639 5,752 5,867 5,984
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

6,127 6,249 6,374 6,502 6,632 6,764 6,900 7,038 7,178

6,127 6,249 6,374 6,502 6,632 6,764 6,900 7,038 7,178

3,337 3,337 3,337 3,337 3,337 3,337 3,337 3,337 3,337
2,789 2,912 3,037 3,164 3,294 3,427 3,562 3,700 3,841
14.12% 14.74% 15.38% 16.02% 16.68% 17.35% 18.04% 18.74% 19.45%
680 726 774 826 881 940 1,003 1,071 1,142
3,469 3,637 3,811 3,990 4,176 4,367 4,566 4,771 4,983
17.57% 18.42% 19.30% 20.20% 21.14% 22.11% 23.12% 24.16% 25.23%
 184% 187% 191% 195% 199% 203% 207% 211% 215%

3,491 4,217 4,991 5,817 6,699 7,639 8,642 9,713 10,855

$40,509 $39,783 $39,009 $38,183 $37,301 $36,361 $35,358 $34,287 $33,145
Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23

14,646 14,939 15,238 15,543 15,854 16,171 16,494 16,824 17,160

8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%
(1,220) (1,245) (1,270) (1,295) (1,321) (1,347) (1,374) (1,402) (1,430)
13,426 13,694 13,968 14,248 14,532 14,823 15,120 15,422 15,730

1,319 1,346 1,373 1,400 1,428 1,457 1,486 1,516 1,546

765 781 796 812 828 845 862 879 897
1,319 1,346 1,373 1,400 1,428 1,457 1,486 1,516 1,546
0 0 0 0 0 0 0 0 0
132 135 137 140 143 146 149 152 155
957 976 995 1,015 1,035 1,056 1,077 1,099 1,121
1,611 1,643 1,676 1,710 1,744 1,779 1,814 1,851 1,888
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
6,104 6,226 6,351 6,478 6,607 6,739 6,874 7,011 7,152
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

7,322 7,468 7,618 7,770 7,925 8,084 8,246 8,410 8,579

7,322 7,468 7,618 7,770 7,925 8,084 8,246 8,410 8,579

3,337 3,337 3,337 3,337 3,337 3,337 3,337 3,337 3,337
3,985 4,131 4,280 4,433 4,588 4,747 4,908 5,073 5,241
20.17% 20.92% 21.67% 22.44% 23.23% 24.03% 24.85% 25.69% 26.54%
1,219 1,300 1,388 1,480 1,580 1,685 1,798 1,919 2,047
5,203 5,431 5,668 5,913 6,168 6,432 6,706 6,992 7,289
26.35% 27.50% 28.70% 29.94% 31.23% 32.57% 33.96% 35.40% 36.90%
 219% 224% 228% 233% 237% 242% 247% 252% 257%

12,074 13,374 14,762 16,242 17,822 19,507 21,306 23,224 25,271

$31,926 $30,626 $29,238 $27,758 $26,178 $24,493 $22,694 $20,776 $18,729
Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30

17,504 17,854 18,211 18,575 18,946 19,325 19,712

8.3% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%
(1,459) (1,488) (1,517) (1,548) (1,579) (1,610) (1,643)
16,045 16,366 16,693 17,027 17,368 17,715 18,069

1,577 1,608 1,641 1,673 1,707 1,741 1,776

915 933 952 971 990 1,010 1,030
1,577 1,608 1,641 1,673 1,707 1,741 1,776
0 0 0 0 0 0 0
158 161 164 167 171 174 178
1,143 1,166 1,189 1,213 1,237 1,262 1,287
1,925 1,964 2,003 2,043 2,084 2,126 2,168
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
7,295 7,441 7,589 7,741 7,896 8,054 8,215
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

8,750 8,925 9,104 9,286 9,472 9,661 9,854

8,750 8,925 9,104 9,286 9,472 9,661 9,854

3,337 3,337 3,337 3,337 3,337 3,337 3,337
5,413 5,588 5,766 5,949 6,134 6,324 6,517
27.41% 28.29% 29.20% 30.12% 31.06% 32.02% 33.00%
2,184 2,331 2,487 2,653 2,831 3,020 3,223
7,597 7,919 8,253 8,602 8,965 9,344 9,740
38.47% 40.09% 41.79% 43.55% 45.39% 47.31% 49.31%
 262% 267% 273% 278% 284% 289% 295%

27,456 29,786 32,273 34,926 37,757 40,777 44,000

$16,544 $14,214 $11,727 $9,074 $6,243 $3,223 $0