| APOD | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Incomehide | ||||||||||
| 1 Bedroom Units (10 units) | $39,360 | $41,328 | $43,394 | $45,564 | $47,842 | $50,234 | $52,746 | $55,383 | $58,153 | $61,060 |
| 2 Bedroom Units (32 units) | $157,440 | $165,312 | $173,578 | $182,256 | $191,369 | $200,938 | $210,985 | $221,534 | $232,611 | $244,241 |
| Laundry | $3,600 | $3,780 | $3,969 | $4,167 | $4,376 | $4,595 | $4,824 | $5,066 | $5,319 | $5,585 |
| Total Gross Income | $200,400 | $210,420 | $220,941 | $231,988 | $243,587 | $255,767 | $268,555 | $281,983 | $296,082 | $310,886 |
| Less: Vacancy & Credit Loss | $10,020 | $10,521 | $11,047 | $11,599 | $12,179 | $12,788 | $13,428 | $14,099 | $14,804 | $15,544 |
| Effective Income | $190,380 | $199,899 | $209,894 | $220,389 | $231,408 | $242,978 | $255,127 | $267,884 | $281,278 | $295,342 |
| Less: Expenseshide | ||||||||||
| Property Taxes | $18,600 | $18,972 | $19,351 | $19,738 | $20,133 | $20,536 | $20,947 | $21,366 | $21,793 | $22,229 |
| Insurance | $3,000 | $3,150 | $3,308 | $3,473 | $3,647 | $3,829 | $4,020 | $4,221 | $4,432 | $4,654 |
| Pool | $1,200 | $1,260 | $1,323 | $1,389 | $1,459 | $1,532 | $1,608 | $1,689 | $1,773 | $1,862 |
| Gardener | $750 | $788 | $827 | $868 | $912 | $957 | $1,005 | $1,055 | $1,108 | $1,163 |
| Utilities | $4,800 | $5,136 | $5,496 | $5,880 | $6,292 | $6,732 | $7,204 | $7,708 | $8,247 | $8,825 |
| Resident Manager | $10,000 | $10,500 | $11,025 | $11,576 | $12,155 | $12,763 | $13,401 | $14,071 | $14,775 | $15,513 |
| Maintenance | $3,200 | $3,360 | $3,528 | $3,704 | $3,890 | $4,084 | $4,288 | $4,503 | $4,728 | $4,964 |
| Reserve | $3,200 | $3,360 | $3,528 | $3,704 | $3,890 | $4,084 | $4,288 | $4,503 | $4,728 | $4,964 |
| Miscellaneous | $1,200 | $1,260 | $1,323 | $1,389 | $1,459 | $1,532 | $1,608 | $1,689 | $1,773 | $1,862 |
| Management Fee | $9,519 | $9,995 | $10,495 | $11,019 | $11,570 | $12,149 | $12,756 | $13,394 | $14,064 | $14,767 |
| Total Operating Expenses | $55,469 | $57,780 | $60,203 | $62,743 | $65,405 | $68,197 | $71,126 | $74,198 | $77,421 | $80,803 |
| Net Operating Income | $134,911 | $142,119 | $149,691 | $157,646 | $166,003 | $174,781 | $184,002 | $193,686 | $203,857 | $214,539 |
| Less: Debt Service | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 | $130,583 |
| Net Operating Cash Flow | $4,328 | $11,536 | $19,108 | $27,063 | $35,420 | $44,199 | $53,419 | $63,103 | $73,275 | $83,956 |
| Sale Proceeds: | ||||||||||
| Sale Value | $1,349,110 | $1,421,186 | $1,496,909 | $1,576,461 | $1,660,030 | $1,747,813 | $1,840,018 | $1,936,862 | $2,038,573 | $2,145,390 |
| Sale Value | $1,349,110 | $1,421,186 | $1,496,909 | $1,576,461 | $1,660,030 | $1,747,813 | $1,840,018 | $1,936,862 | $2,038,573 | $2,145,390 |
| Less: Sale Costs (7%) | $94,438 | $99,483 | $104,784 | $110,352 | $116,202 | $122,347 | $128,801 | $135,580 | $142,700 | $150,177 |
| Less: Loan Repayment | $1,233,107 | $1,225,492 | $1,217,080 | $1,207,787 | $1,197,521 | $1,186,180 | $1,173,652 | $1,159,811 | $1,144,522 | $1,127,631 |
| Sale Proceeds Before Tax | $21,565 | $96,211 | $175,045 | $258,321 | $346,307 | $439,286 | $537,565 | $641,470 | $751,351 | $867,582 |
| Ratio Analysis: | ||||||||||
| Profitability Ratios | ||||||||||
| Capitalization Rate | 8.70% | 9.17% | 9.66% | 10.17% | 10.71% | 11.28% | 11.87% | 12.50% | 13.15% | 13.84% |
| Cash on Cash Before Tax | 1.26% | 3.35% | 5.55% | 7.86% | 10.29% | 12.84% | 15.52% | 18.34% | 21.29% | 24.40% |
| Risk Ratios | ||||||||||
| Debt Coverage Ratio | 1.033 | 1.088 | 1.146 | 1.207 | 1.271 | 1.338 | 1.409 | 1.483 | 1.561 | 1.643 |
| Breakeven Occupancy | 92.80% | 89.50% | 86.40% | 83.30% | 80.50% | 77.70% | 75.10% | 72.60% | 70.30% | 68.00% |
| Loan Balance/Property Value | 91.40% | 86.20% | 81.30% | 76.60% | 72.10% | 67.90% | 63.80% | 59.90% | 56.10% | 52.60% |
| Assumption Ratios | ||||||||||
| NOI/Property Value | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Gross Income Multiple | 6.73 | 6.75 | 6.78 | 6.8 | 6.81 | 6.83 | 6.85 | 6.87 | 6.89 | 6.9 |
| Operating Expense Ratio | 27.70% | 27.50% | 27.20% | 27.00% | 26.90% | 26.70% | 26.50% | 26.30% | 26.10% | 26.00% |
| Analysis Measures: | ||||||||||
| IRR Before Debt | 1.2% | 5.9% | 8.3% | 9.7% | 10.7% | 11.4% | 11.9% | 12.4% | 12.7% | |
| IRR Before Tax | 5.7% | 10.1% | 12.9% | 14.7% | 15.9% | 16.7% | ||||