DEFINITIONS

PROPERTY DESCRIPTION
Summary description of subject property; also includes link to listing platform

5-YEAR RETURN SUMMARY
Required Investment: Total cash required to make the investment; includes (i) down payment on the loan and (ii) buyer transaction fees

Total Cash Return: Total cash received at the sale of the property after 5 years

Net Return: Cash Return less Investment; net gain from the transaction

Annualized Return %: Internal rate of return (IRR) is the percentage rate earned on each dollar invested for each period

Cash Multiple: Cash on cash multiple (e.g., invest $100 and get back $200 the cash multiple is equal to 2.0x)

Capitalization Rate: A real estate metric measured by dividing the net operating income (NOI) by the property value (Capex excluded from NOI)

Est. Monthly Rent (Year 1): Monthly rent from the property

Operating Expenses: Percentage of operating expenses for the property

Loan Payment: Loan payment due each month

NET RETURN AND IRR SENSITIVITY
Table displaying a range of Net Returns and IRRs based on varying rates of property value appreciation and monthly rent levels

RENTAL CASH FLOW (Y1)
Rent: Annual rent collected from the property

Loan Pmt: Annual loan payments made on the property

Other Exp:
•Vacancy Allowance: expense used to adjust rental income to account for annual vacancy of the property
•Repairs/Maint. Allowance: expense used for customary repairs and maintenance of the property
•Capex reserve: capitalized expenditures reserves are used for large non-recurring repairs/improvements (e.g., roof, furnace)
•HOA Fees: home owners association fees

Prop. Mgmt: Annual expenses for operation and oversight  of your property

Taxes: Annual property taxes (usually tied to property value)

Insurance: Annual homeowners insurance expense

Cash Flow: Annual cash after all expenses are paid

EST. FINANCIALS
Estimated financial projections based on the income and expenses assumptions

RENTAL CASH FLOW OVER TIME
Graphic showing estimated rental income, expenses and subsequent cash flow

PURCHASE/SALE
Summary of purchase, financing/loan payments and sale of the subject property. Purchase price and sale price adjusted to include effect of buyer and seller costs of 3.0% and 6.0%, respectively

PROJECTED PROPERTY VALUE
The projected property value over time assuming a 5-year appreciation rate. Includes breakout of outstanding loan balance and equity ownership