INVESTMENT TIMELINE FOR $120,000 INVESTMENT
A
Refinance at 70% LTV, pulling $115,500 in capital out to start a new deal.
Net Yearly Profit
75% Working Interest
All-In Cost
Monthly Rent
Return ARV Equity
Y1
120,000 1,400
10,920
9% 165,000 45,000
Refinance in Y2 lowers monthly profit, but you gain a position in another house, thus increasing overall equity
Y2 4,500
1,450
855
25% 173,250 53,250 39,938
Y3 4,500
1,500
1,148
34% 181,912
61,913
46,435
B
Y2 115,500
1,450
11,310
9.7% 160,000 45,000
Y3 3,500
1,500
1,379
42% 169,000 52,500 39,375
C
Y3 110,000
1,500
11,700
10.6% 160,000 45,000
Number of Properties
Initial Investment
Cash Dividends
Cash on Cash ROI
Equity ROI
Combined ROI
Total
Equity
IRR
3 Years
120,000
3
37,312
31% 159,413 1.33%
1.64X
54.7%
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