Controlling Factors[1] Property Information Canyon Lakes
Annual Rent Increases 3.00% Purchase Price $150,000.00
Annual Property Tax Change 2.00% Price + Rehab $147,000.00
Annual Appreciation Change 5.00% Market Value $170,000.00
Hold Term (years) 4 Target Resale Price[2] $255,000.00
Expense Information Year 1 Year 2 Year 3 Year 4
Monthly Annual Monthly Annual Monthly Annual Monthly Annual
  Taxes $375 $4,500 $383 $4,590 $390 $4,682 $398 $4,775
  Insurance $67 $800 $67 $800 $67 $800 $67 $800
  Lawn service 0 $0 0 $0 0 $0 0 $0
  Maintenance $0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0
  Water $0 $0 $0 $0 $0 $0 $0 $0
  Pest control $0 $0 $0 $0 $0 $0 $0 $0
  Lease fee $0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0
  Management fee $0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0
HOA Dues $54 $650 $54 $650 $54 $650 $54 $650
Total Expenses: $496 $5,950 $503 $6,040 $511 $6,132 $519 $6,225
Income Information
  Base Rent $1,575.00 $18,900 $1,622.25 $19,467.00 $1,670.92 $20,051.01 $1,721.05 $20,652.54
  Vacancy Allowance (%) 0.0% $0 $0 $0 $0 $0 $0 $0 $0
  Other Income $0 $0 $0 $0 $0 $0 $0 $0
Scheduled Gross Income $1,575 $18,900 $1,622.25 $19,467.00 $1,670.92 $20,051.01 $1,721.05 $20,652.54
NOI $12,950 $13,427 $13,919 $14,427
Investment Summary   Principle & Interest    Interest Only   Deferred Interest  
    8.250%     8.250%     7.90%  
Total Capital Invested     $800.00   $800.00   $800.00  
Borrowed Capital      $   30,000.00    $     30,000.00    $     30,000.00  
Financing     Monthly Annual   Monthly Annual   Monthly Annual  
Payments     $1,126.52 $13,518.24   $1,050.00 $12,600.00   $551.64 $6,619.70  
  Mortgage Insurance (monthly) [PMI]   $0.00 $0   $0.00 $0   $0.00 $0  
Total Payments     $1,126.52 $13,518   $1,050.00 $12,600   $551.64 $6,620  
PITI   $1,622.35 $19,468.24   $1,545.83 $18,550.00   $1,047.47 $12,569.70  
     
Total Expenses   $496 $5,950   $496 $5,950   $496 $5,950  
Total Income   $1,575 $18,900   $1,575 $18,900   $1,575 $18,900  
     
Net Profit (Loss)   ($47) ($568)   $29 $350   $528 $6,330  
Return on Capital (Year 1)   -71.030%   43.750%   791.288%  
Principle Reduction     $4,575.74        
Return on Equity Line   -1.89%   1.17%   21.10%  
Deferred Interest       $20,374.98  
Debt  to Income   137%   131%   89%  
             
Net Income By Year   Year:   Net Inc. Year:   Net Inc. Year:   Net Inc.  
  1   -$568 1   $350 1   $6,330  
  2   -$91.24 2   $827.00 2   $6,807.30  
  3   $400.97 3   $1,319.21 3   $7,299.51  
  4   $908.87 4   $1,827.10 4   $7,807.41  
                     
Profit Margin By Year   Year:   Net Inc. Year:   Net Inc. Year:   Net Inc.  
(Net Income / Gross Revenue)   1   -3% 1   2% 1   33%  
  2   0% 2   4% 2   35%  
  3   2% 3   7% 3   36%  
  4   4% 4   9% 4   38%  
Loan Amortization Schedule         Deferred Interest Schedule
  Principle   Interest     Principle   Interest   Principle   Interest Interest Deferred
Principle Payment @ yr (est.) Year: Pd.   Pd.   Year: Pd.   Pd. Year: Pd.   Pd.
  (Annualized) 1 $1,011.71 E $12,506.53   1 $2,258.41 E $4,361.29 1 $475.56 E $9,464.28 $5,103.00
2 $1,095.18   $12,423.06   2 $2,290.03   $4,329.67 2 $513.13   $9,428.21 $5,098.54
3 $1,185.53   $12,332.71   3 $2,322.09   $4,297.61 3 $553.67   $9,389.19 $5,091.58
4 $1,283.33   $12,234.91   4 $2,354.60   $4,265.10 4 $597.41   $9,346.96 $5,081.86
5 $1,389.21   $12,129.03   5 $2,387.56   $4,232.14 5 $644.61   $9,301.28 $5,069.14
Investment Return      
Property Value[3]    $    204,000.00      $    204,000.00    $    204,000.00  
Remaining Principle   -$145,424.26     -$150,000.00   -$150,000.00  
Interest Deferred             $20,374.98  
Equity    $     58,575.74      $     54,000.00    $     33,625.02  
     
Equity Return on Capital Invested   7322%     6750%   4203%  
Equity Return on Borrowed Capital   195%     180%   112%  
Net Profit from Rents   $650     $4,323   $28,245  
Rent Return on Capital Invested   81%     540%   3530.57%  
     
Gross Profit from Investment[4]    $ 59,226.10      $ 58,323.31    $ 61,869.55  
Gross Return on Capital Invested[5]   7403%     7290%   7733.69%  
     
Schedule of Net Income  Cash Invested ($800.00)     Cash Invested ($800.00)   Cash Invested ($800.00)  
Year 1 -$568     Year 1 $350   Year 1 $6,330  
Year 2 -$91.24     Year 2 $827.00   Year 2 $6,807.30  
Year 3 $400.97     Year 3 $1,319.21   Year 3 $7,299.51  
Year 4 $908.87     Year 4 $1,827.10   Year 4 $7,807.41  
Equity $58,575.74     Equity $54,000.00   Equity $33,625.02  
IRR of Investment over 4 Years   126%     162%   799%  
Using Equity, Yearly Net Income and Property Appreciation
[1]
Travis Foote:
These factors are used to predict future income, expense and appreciation. 
[2]
Travis Foote:
If the property appreciates to this price, we sell regardless of how long we have owned it.
[3]
Travis Foote:
Property value is determined using the Appreciation rate entered in the Controlling Factos
[4]
Travis Foote:
The Gross Equity + Net Rent
[5]
Travis Foote:
The Gross Profit / Initial Capital