Your Scenario
Cash-Out at Year 5
$51,466
New Properties
Acquired
1
Year - 10 Equity
$328,634
ROI on Intial Cash
476%
Year - 5 Cash-Out
Year | # Properties | Portfolio Value | Debt | Equity |
|---|---|---|---|---|
0 | 1 | $300,000 | $240,000 | $60,000 |
1 | 1 | $315,000 | $237,788 | $77,212 |
2 | 1 | $330,750 | $235,403 | $95,347 |
3 | 1 | $347,288 | $232,834 | $114,453 |
4 | 1 | $364,652 | $230,065 | $134,586 |
5 | 2 | $642,884 | $521,163 | $121,721 |
6 | 2 | $675,029 | $516,119 | $158,909 |
7 | 2 | $708,780 | $510,697 | $198,083 |
8 | 2 | $744,219 | $504,868 | $239,351 |
9 | 2 | $781,430 | $498,603 | $282,827 |
10 | 2 | $820,502 | $491,868 | $328,634 |
Year-by-Year Snapshot
New Purchases at Year‑5 (10% Down)
Initial Purchase Cash to Close
Down Payment
$60,000
$9,000
Closing Cost
Total Initial Cash
$69,000
How This Works
-
Buy an investment property with DSCR financing (inputs at left).
-
Property appreciates at 5% per year by design.
-
At Year 5, we model a cash‑out refi to 75% LTV; proceeds net out refi costs and the remaining balance.
-
Use net cash‑out to fund 10% down on additional like‑kind properties (plus closing costs). We model loans for the new properties at the refi rate.
-
All properties continue appreciating at 5% through Year 10; chart shows portfolio equity over time.
Model excludes rent/NOI, taxes, insurance, maintenance, DSCR qualification impacts, and income tax effects. For lending, program eligibility and terms apply.
Ready to map your Investment path?
Get a personalized strategy with rates, DSCR, and leverage tailored to your market.
Frequently Asked (Investor) Questions
What DSCR do I need to qualify?
Most programs target DSCR ≥ 1.00–1.10×, but guidelines vary. We’ll tailor structure and pricing to your scenario.
What if rates change before Year‑5?
This is a planning model. Actual refi proceeds depend on rates, LTV limits, and your property’s appraised value at the time.
Can I 1031 instead of cash‑out?
Different strategy and tax treatment. This tool focuses on cash‑out refi to seed 10% down payments.
Can I change appreciation from 5%?
We’ve locked it to 5% for this landing page. We can customize a pro version with scenarios.
Disclosures
This is an educational estimator. Results are hypothetical and not a commitment to lend. DSCR, credit, reserves, prepayment penalties, state restrictions, and investor eligibility apply. Equal Housing Lender.