Scenario [Change]
| Acquisition | |
|---|---|
| Purchase Price | $899,000 |
| Operation | |
| Gross Potential Income | $111,780 |
| Vacancy | 5% |
| Operating Expense | $27,948 |
| Assumptions | |
| Appreciation | 4% |
| Holding Pd. | 30 yrs. |
| GPI Growth | 2% |
| OpEx Growth | 1% |
| Financing 1 | |
| Principal | $674,250 |
| Interest | 6.5% |
| Interest Only | No |
| Amortization | 30 yrs |
Calculations (All expressed per year)
| Gross Operating Income | $106,191 |
| Net Operating Income (NOI) | $78,243 |
| Mortgage Payment | $51,141 |
Financial Ratios [?]
| Cap rate | 8.70% |
| Gross Rent Multiplier (GRM) | 8.04 |
| Debt Coverage Ratio (DCR) | 1.53 |
| Cashflow Before Tax (CFBT) | $27,102 |
| Cash on Cash Return (CCR) | 12.06% |
| CCR after Equity | 15.41% |
| CCR after Equity, and Appreciation | 31.41% |
Did you know you can change financial assumptions and see different results? Click on the [change] link above the scenario box to your right!
| Year 1 | Year 5 | Year 9 | Year 13 | Year 17 | Year 21 | Year 25 | Year 29 | |
| Income and Expense | ||||||||
| Gross Potential Income | $111,780 | $120,994 | $130,968 | $141,764 | $153,450 | $166,099 | $179,791 | $194,612 |
| Gross Operating Income | $106,191 | $114,945 | $124,420 | $134,676 | $145,777 | $157,794 | $170,802 | $184,881 |
| Operating Expense | $27,948 | $29,083 | $30,264 | $31,493 | $32,771 | $34,102 | $35,487 | $36,927 |
| Net Operating Income | $78,243 | $85,862 | $94,156 | $103,183 | $113,006 | $123,692 | $135,315 | $147,954 |
| Debt Servicing | ||||||||
| Principal Payment | $7,536 | $9,767 | $12,658 | $16,406 | $21,262 | $27,556 | $35,713 | $46,285 |
| Interest Payment | $43,604 | $41,373 | $38,482 | $34,735 | $29,879 | $23,585 | $15,428 | $4,856 |
| Principal Remaining | $666,714 | $631,172 | $585,109 | $525,411 | $448,041 | $347,767 | $217,811 | $49,385 |
| Ratios | ||||||||
| Cap Rate | 8.70% | 9.55% | 10.47% | 11.48% | 12.57% | 13.76% | 15.05% | 16.46% |
| Gross Rent Multiplier | 8.04 | 7.43 | 6.86 | 6.34 | 5.86 | 5.41 | 5.00 | 4.62 |
| Debt Coverage Ratio | 1.53 | 1.68 | 1.84 | 2.02 | 2.21 | 2.42 | 2.65 | 2.89 |
| Cumulative Equity | ||||||||
| Cashflow Before Taxes | $27,102 | $34,721 | $43,015 | $52,043 | $61,866 | $72,552 | $84,174 | $96,813 |
| Appreciation | $35,960 | $42,068 | $49,214 | $57,573 | $67,352 | $78,793 | $92,176 | $107,833 |
| Cash on Cash Return (CCR) | 12.06% | 15.45% | 19.14% | 23.16% | 27.53% | 32.28% | 37.45% | 43.08% |
| CCR after Equity | 15.41% | 19.79% | 24.77% | 30.46% | 36.99% | 44.54% | 53.34% | 63.67% |
| CCR after Equity & Appreciation | 31.41% | 38.51% | 46.67% | 56.07% | 66.95% | 79.60% | 94.36% | 111.65% |
| Total Equity | $70,599 | $86,556 | $104,888 | $126,021 | $150,480 | $178,900 | $212,064 | $250,931 |
