Appreciation %: Calculated based on appreciation rate percentile for the market area, average default rate is 6.3%

Expense Rate: Tax + Ins + Lawncare + Utilities + Property Mgmt.

NOI: Annual Income – Expense Rate / 100 – Annual Income

Mortgage Paid 1st Year: Interest Rate / 12, Term * 12 – Loan Amount * 12

Cash Flow: NOI – Mortgage Paid

Gross Rate Multiplier: Purchase Price / Annual Income / 100

Cap Rate %: NOI / Purchase Price

Price Per Unit: Purchase Price / Price Per Unit

Down Payment: Purchase Price – Loan Amount

C-on-C Return %: NOI – Mortgage Paid / Down Payment

Estimated Appreciation 1st Year: Appreciation Rate / 100 + 1 * PP – PP (Purchase Price)

Estimated Value after 1 year: Estimated Appreciation + Purchase Price

Annual Amount of Return: Cash Flow + Principal Pay Down + Est. Appreciation

Return on Equity (ROE) %: Annual Return / Amount of Down Payment