http://casperrentalcentral.com/wp-content/uploads/2015/04/Cumulative5YearActualTaxableCashFlow.png

______________________________________________________________________________

______________________________________________________________________________

Cumulative 5 Year Actual & Taxable Cash Flow

• While all of these numbers are projected and estimated, the owner of these properties has owned them for the past two decades.  That ownership history has been used to predict the future of these same properties.
• The 3% appreciation has been carried over to the rental income and the rental expenses.  So, each year the expected monthly rent would increase by 3% and the expected monthly expense would also increase by 3%.
• If these projections and estimates hold true, the after tax Cash on Cash flow in five years will equal 46.48% of the CDP or $115,951.60, add in the $29,932.25 of principal reduction and $132,452.32 of accumulative appreciation  for a whopping IRR of $278,336.17 or 111.57% of CDP.
• The calculated gross equity at the end of year 5 is $412,872.35.  If we add in the accumulative after tax Cash Flow and the accumulative principal reduction, the total potential of this investment is $558,756.20 at the end of five years.