Scenario [Change]
| Acquisition | |
|---|---|
| Purchase Price | $875,000 |
| Operation | |
| Gross Potential Income | $148,668 |
| Vacancy | 5% |
| Operating Expense | $58,740 |
| Assumptions | |
| Appreciation | 4% |
| Holding Pd. | 30 yrs. |
| GPI Growth | 2% |
| OpEx Growth | 1% |
| Financing 1 | |
| Principal | $656,250 |
| Interest | 6.5% |
| Interest Only | No |
| Amortization | 30 yrs |
Calculations (All expressed per year)
| Gross Operating Income | $141,235 |
| Net Operating Income (NOI) | $82,495 |
| Mortgage Payment | $49,775 |
Financial Ratios [?]
| Cap rate | 9.43% |
| Gross Rent Multiplier (GRM) | 5.89 |
| Debt Coverage Ratio (DCR) | 1.66 |
| Cashflow Before Tax (CFBT) | $32,719 |
| Cash on Cash Return (CCR) | 14.96% |
| CCR after Equity | 18.31% |
| CCR after Equity, and Appreciation | 34.31% |
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 | $148,668 | $160,923 | $174,188 | $188,547 | $204,089 | $220,913 | $239,123 | $258,835 |
| Gross Operating Income | $141,235 | $152,877 | $165,479 | $179,120 | $193,885 | $209,867 | $227,167 | $245,893 |
| Operating Expense | $58,740 | $61,125 | $63,607 | $66,190 | $68,877 | $71,674 | $74,584 | $77,613 |
| Net Operating Income | $82,495 | $91,752 | $101,872 | $112,930 | $125,008 | $138,193 | $152,583 | $168,280 |
| Debt Servicing | ||||||||
| Principal Payment | $7,335 | $9,506 | $12,321 | $15,968 | $20,694 | $26,820 | $34,760 | $45,049 |
| Interest Payment | $42,440 | $40,269 | $37,455 | $33,808 | $29,081 | $22,955 | $15,016 | $4,726 |
| Principal Remaining | $648,915 | $614,322 | $569,489 | $511,384 | $436,080 | $338,483 | $211,996 | $48,066 |
| Ratios | ||||||||
| Cap Rate | 9.43% | 10.49% | 11.64% | 12.91% | 14.29% | 15.79% | 17.44% | 19.23% |
| Gross Rent Multiplier | 5.89 | 5.44 | 5.02 | 4.64 | 4.29 | 3.96 | 3.66 | 3.38 |
| Debt Coverage Ratio | 1.66 | 1.84 | 2.05 | 2.27 | 2.51 | 2.78 | 3.07 | 3.38 |
| Cumulative Equity | ||||||||
| Cashflow Before Taxes | $32,719 | $41,976 | $52,096 | $63,155 | $75,232 | $88,418 | $102,807 | $118,505 |
| Appreciation | $35,000 | $40,945 | $47,900 | $56,036 | $65,554 | $76,689 | $89,716 | $104,955 |
| Cash on Cash Return (CCR) | 14.96% | 19.19% | 23.82% | 28.87% | 34.39% | 40.42% | 47.00% | 54.17% |
| CCR after Equity | 18.31% | 23.53% | 29.45% | 36.17% | 43.85% | 52.68% | 62.89% | 74.77% |
| CCR after Equity & Appreciation | 34.31% | 42.25% | 51.34% | 61.79% | 73.82% | 87.74% | 103.90% | 122.75% |
| Total Equity | $75,054 | $92,428 | $112,317 | $135,158 | $161,481 | $191,927 | $227,283 | $268,509 |
