14 Raw Land Investing Ideas for Passive Income
Nate Nead
June 4, 2019
When it comes to investing in real estate, most people
Real Estate Investing Blog
When it comes to investing in real estate, most people
$30,000
$30,000
$120,000
$9,101
$758
$30,000
$4,800
$34,800
| INCOME ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
|---|---|---|---|---|---|---|---|---|
| Gross Scheduled Income | ||||||||
| Less Vacancy Allowance | ||||||||
| Gross Operating Income | ||||||||
| Property Taxes | ||||||||
| Insurance | ||||||||
| Utilities | ||||||||
| Homeowners Association | ||||||||
| Maintenance Reserve | ||||||||
| Property Management | ||||||||
| Total Operating Expenses | ||||||||
| Net Operating Income | ||||||||
| Capitalization (Cap) Rate (%) | ||||||||
| Less Mortgage Expense | ||||||||
| CASH FLOW | ||||||||
| Cash on Cash Return | 4.8% | 6.1% | 7.5% | 8.9% | 10.4% | 18.7% | 41.4% | 75.3% |
| EQUITY ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
| Property Value | $150,000 | $156,000 | $162,240 | $168,730 | $175,479 | $213,497 | $316,027 | $467,798 |
| Plus Appreciation | $6,000 | $6,240 | $6,490 | $6,750 | $7,020 | $8,540 | $12,642 | $18,712 |
| Less Mortgage Balance | $118,659 | $117,228 | $115,701 | $114,071 | $112,333 | $101,731 | $66,798 | $0 |
| TOTAL EQUITY | $37,341 | $45,012 | $53,029 | $61,409 | $70,166 | $120,306 | $261,871 | $486,510 |
| Total Equity (%) | 24% | 28% | 31% | 35% | 38% | 54% | 80% | 100% |
| FINANCIAL PERFORMANCE | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
|---|---|---|---|---|---|---|---|---|
| Cumulative Net Cash Flow | $1,686 | $3,823 | $6,432 | $9,531 | $13,143 | $19,651 | $34,042 | $60,237 |
| Cumulative Appreciation | $6,000 | $12,240 | $18,730 | $25,480 | $32,500 | $41,040 | $53,682 | $72,394 |
| Total Net Profit if Sold | - | $1,309 | $9,548 | $18,158 | $27,158 | $78,674 | $224,020 | $454,393 |
| Annualized Return (IRR) | - | 10.9% | 15.7% | 17.6% | 18.4% | 18.6% | 17.5% | 16.9% |