Mortgage Amount $963,000   Rental Income (Tier 1)    $191,003 Other Income $4,800
Upgrade Cost $5,000   Rental Income (Tier 2)    $202,038 Operating Expense $105,000
Mortgage Rate 4.50%   Vacancy Rate 5.00% Expenses 3.50% Rent and other Rates 2.50%

 

Table 1: Income and Expense Comparison
Standard Schedule
Year
1
2
3
4
5
6
7
13
14
15
Rental Income
$191,003
$195,778
$200,672
$205,689
$210,831
$216,102
$221,505
$256,877
$263,299
$269,882
Other Income
$4,800
$4,920
$5,043
$5,169
$5,298
$5,431
$5,567
$6,455
$6,617
$6,782
Gross Income
$195,803
$200,698
$205,715
$210,858
$216,130
$221,533
$227,071
$263,333
$269,916
$276,664
Vacancy
$9,790
$10,035
$10,286
$10,543
$10,806
$11,077
$11,354
$13,167
$13,496
$13,833
Effective Gross Income
$186,013
$190,663
$195,429
$200,315
$205,323
$210,456
$215,718
$250,166
$256,420
$262,831
Operating Expense
$105,000
$107,625
$110,316
$113,074
$115,900
$118,798
$121,768
$141,213
$144,744
$148,362
Net Operating Income
$81,013
$83,038
$85,114
$87,242
$89,423
$91,658
$93,950
$108,953
$111,677
$114,469
Debt Service
$89,669
$89,669
$89,669
$89,669
$89,669
$89,669
$89,669
$89,669
$89,669
$89,669
Residual Cash
-$8,656
-$6,631
-$4,555
-$2,427
-$246
$1,990
$4,281
$19,284
$22,008
$24,800
Cumulative Residual
-$8,656
-$15,287
-$19,841
-$22,268
-$22,514
-$20,524
-$16,243
$60,875
$82,883
$107,683
 
Energy Efficiency-Based Schedule for New Construction
Year
1
2
3
4
5
6
7
13
14
15
Rental Income
$202,038
$207,089
$212,266
$217,573
$223,012
$228,588
$234,302
$271,719
$278,512
$285,475
Other Income
$4,800
$4,920
$5,043
$5,169
$5,298
$5,431
$5,567
$6,455
$6,617
$6,782
Gross Income
$206,838
$212,009
$217,309
$222,742
$228,311
$234,018
$239,869
$278,174
$285,129
$292,257
Vacancy
$10,342
$10,600
$10,865
$11,137
$11,416
$11,701
$11,993
$13,909
$14,256
$14,613
Effective Gross Income
$196,496
$201,409
$206,444
$211,605
$216,895
$222,318
$227,875
$264,266
$270,872
$277,644
Operating Expense
$105,000
$107,625
$110,316
$113,074
$115,900
$118,798
$121,768
$141,213
$144,744
$148,362
Net Operating Income
$91,496
$93,784
$96,128
$98,532
$100,995
$103,520
$106,108
$123,052
$126,129
$129,282
Debt Service
$90,134
$90,134
$90,134
$90,134
$90,134
$90,134
$90,134
$90,134
$90,134
$90,134
Residual Cash
$1,362
$3,650
$5,994
$8,397
$10,861
$13,386
$15,973
$32,918
$35,994
$39,148
Cumulative Residual
$1,362
$5,012
$11,006
$19,403
$30,264
$43,649
$59,623
$213,550
$249,545
$288,692
 
Yearly Difference $10,018 $20,298 $30,847 $41,671 $52,778 $64,174 $75,866 $152,675 $166,662 $181,009

Back to Article