New Construction in Birmingham Metro
Hueytown, AL 35023
3bd • 2ba • Built: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $21,300 | $21,939 | $22,597 | $23,275 | $23,973 | $24,693 | $25,433 | $26,196 | $26,982 | $27,792 |
| Vacancy Losses | ($1,704) | ($1,755) | ($1,808) | ($1,862) | ($1,918) | ($1,975) | ($2,035) | ($2,096) | ($2,159) | ($2,223) |
| Operating Income | $19,596 | $20,184 | $20,789 | $21,413 | $22,055 | $22,717 | $23,399 | $24,101 | $24,824 | $25,568 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,650) | ($2,730) | ($2,811) | ($2,896) | ($2,983) | ($3,072) | ($3,164) | ($3,259) | ($3,357) | ($3,458) |
| Insurance | ($1,060) | ($1,092) | ($1,125) | ($1,158) | ($1,193) | ($1,229) | ($1,266) | ($1,304) | ($1,343) | ($1,383) |
| Management Fees | ($1,568) | ($1,615) | ($1,663) | ($1,713) | ($1,764) | ($1,817) | ($1,872) | ($1,928) | ($1,986) | ($2,045) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($240) | ($247) | ($255) | ($262) | ($270) | ($278) | ($287) | ($295) | ($304) | ($313) |
| Maintenance | ($426) | ($439) | ($452) | ($466) | ($479) | ($494) | ($509) | ($524) | ($540) | ($556) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,944) | ($6,122) | ($6,306) | ($6,495) | ($6,690) | ($6,890) | ($7,097) | ($7,310) | ($7,529) | ($7,755) |
| Income Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Net Operating Income | $13,652 | $14,062 | $14,484 | $14,918 | $15,366 | $15,827 | $16,302 | $16,791 | $17,294 | $17,813 |
| - Mortgage Payments | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) | ($14,299) |
| = Cash Flow | ($647) | ($237) | $184 | $619 | $1,066 | $1,527 | $2,002 | $2,491 | $2,995 | $3,514 |
| + Principal Reduction | $2,441 | $2,591 | $2,751 | $2,921 | $3,101 | $3,292 | $3,495 | $3,711 | $3,940 | $4,183 |
| + Appreciation | $15,900 | $16,854 | $17,865 | $18,937 | $20,073 | $21,278 | $22,554 | $23,908 | $25,342 | $26,863 |
| = Gross Equity Income | $17,694 | $19,208 | $20,801 | $22,477 | $24,241 | $26,097 | $28,052 | $30,110 | $32,277 | $34,559 |
| Capitalization Rate | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% | 4.1% | 4.0% | 3.9% | 3.8% |
| Cash on Cash Return | -0.9% | -0.3% | 0.3% | 0.9% | 1.5% | 2.1% | 2.8% | 3.5% | 4.2% | 4.9% |
| Return on Equity | 20.9% | 18.5% | 16.7% | 15.3% | 14.3% | 13.4% | 12.7% | 12.1% | 11.6% | 11.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $280,900 | $297,754 | $315,619 | $334,556 | $354,630 | $375,908 | $398,462 | $422,370 | $447,712 | $474,575 |
| - Loan Balance | ($196,309) | ($193,718) | ($190,967) | ($188,046) | ($184,945) | ($181,653) | ($178,158) | ($174,447) | ($170,507) | ($166,325) |
| = Equity | $84,591 | $104,036 | $124,652 | $146,510 | $169,684 | $194,254 | $220,304 | $247,923 | $277,204 | $308,250 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.2% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $56,501 | $74,261 | $93,090 | $113,055 | $134,221 | $156,664 | $180,458 | $205,686 | $232,433 | $260,792 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $84,591 | $104,036 | $124,652 | $146,510 | $169,684 | $194,254 | $220,304 | $247,923 | $277,204 | $308,250 |
| - Closing Costs | ($19,663) | ($20,843) | ($22,093) | ($23,419) | ($24,824) | ($26,314) | ($27,892) | ($29,566) | ($31,340) | ($33,220) |
| = Proceeds After Sale | $64,928 | $83,193 | $102,559 | $123,091 | $144,860 | $167,941 | $192,412 | $218,357 | $245,865 | $275,030 |
| + Cumulative Cash Flow | ($647) | ($884) | ($700) | ($81) | $985 | $2,513 | $4,515 | $7,006 | $10,001 | $13,515 |
| - Approximate Cash Invested | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) | ($71,550) |
| = Net Profit | ($7,269) | $10,759 | $30,309 | $51,460 | $74,296 | $98,904 | $125,377 | $153,813 | $184,316 | $216,995 |
| Internal Rate of Return | -10.2% | 7.2% | 12.4% | 14.4% | 15.2% | 15.5% | 15.6% | 15.5% | 15.3% | 15.1% |
| Return on Investment | -10.2% | 15.0% | 42.4% | 71.9% | 103.8% | 138.2% | 175.2% | 215.0% | 257.6% | 303.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.