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Well-Maintained Existing Property near Tuscaloosa
Moundville, AL 35474
3 bedrooms 2 bathrooms 2018 year built
Under $200k property in a great neighborhood!
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected Rent | $16,800 | $17,304 | $17,823 | $18,358 | $18,909 | $19,476 | $20,060 | $20,662 | $21,282 | $21,920 |
| Vacancy Losses | ($1,344) | ($1,384) | ($1,426) | ($1,469) | ($1,513) | ($1,558) | ($1,605) | ($1,653) | ($1,703) | ($1,754) |
| Operating Income | $15,456 | $15,920 | $16,397 | $16,889 | $17,396 | $17,918 | $18,455 | $19,009 | $19,579 | $20,167 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Property Taxes | ($1,234) | ($1,271) | ($1,310) | ($1,349) | ($1,389) | ($1,431) | ($1,474) | ($1,518) | ($1,564) | ($1,611) |
| Insurance | ($798) | ($822) | ($846) | ($872) | ($898) | ($925) | ($952) | ($981) | ($1,010) | ($1,041) |
| Management Fees | ($1,032) | ($1,063) | ($1,095) | ($1,128) | ($1,162) | ($1,196) | ($1,232) | ($1,269) | ($1,307) | ($1,347) |
| 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 | ($840) | ($865) | ($891) | ($918) | ($945) | ($974) | ($1,003) | ($1,033) | ($1,064) | ($1,096) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,144) | ($4,268) | ($4,396) | ($4,528) | ($4,664) | ($4,804) | ($4,948) | ($5,097) | ($5,249) | ($5,407) |
| 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 | $11,312 | $11,651 | $12,001 | $12,361 | $12,732 | $13,114 | $13,507 | $13,912 | $14,330 | $14,760 |
| - Mortgage Payments | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) | ($10,663) |
| = Cash Flow | $649 | $989 | $1,338 | $1,698 | $2,069 | $2,451 | $2,845 | $3,250 | $3,667 | $4,097 |
| + Principal Reduction | $1,630 | $1,737 | $1,851 | $1,973 | $2,102 | $2,240 | $2,387 | $2,544 | $2,711 | $2,889 |
| + Appreciation | $11,394 | $12,078 | $12,802 | $13,570 | $14,385 | $15,248 | $16,163 | $17,132 | $18,160 | $19,250 |
| = Gross Equity Income | $13,674 | $14,804 | $15,992 | $17,242 | $18,556 | $19,939 | $21,394 | $22,926 | $24,538 | $26,236 |
| Capitalization Rate | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% |
| Cash on Cash Return | 1.1% | 1.7% | 2.4% | 3.0% | 3.6% | 4.3% | 5.0% | 5.7% | 6.5% | 7.2% |
| Return on Equity | 22.6% | 19.9% | 18.0% | 16.5% | 15.3% | 14.4% | 13.6% | 13.0% | 12.4% | 11.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Value | $201,294 | $213,372 | $226,174 | $239,744 | $254,129 | $269,377 | $285,539 | $302,672 | $320,832 | $340,082 |
| - Loan Balance | ($140,795) | ($139,058) | ($137,207) | ($135,234) | ($133,132) | ($130,892) | ($128,505) | ($125,961) | ($123,250) | ($120,361) |
| = Equity | $60,499 | $74,314 | $88,967 | $104,510 | $120,997 | $138,485 | $157,035 | $176,711 | $197,582 | $219,721 |
| Loan-to-Value Ratio | 69.9% | 65.2% | 60.7% | 56.4% | 52.4% | 48.6% | 45.0% | 41.6% | 38.4% | 35.4% |
| Potential Cash-Out Refi | $40,370 | $52,977 | $66,350 | $80,536 | $95,584 | $111,547 | $128,481 | $146,444 | $165,499 | $185,713 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity | $60,499 | $74,314 | $88,967 | $104,510 | $120,997 | $138,485 | $157,035 | $176,711 | $197,582 | $219,721 |
| - Closing Costs | ($14,091) | ($14,936) | ($15,832) | ($16,782) | ($17,789) | ($18,856) | ($19,988) | ($21,187) | ($22,458) | ($23,806) |
| = Proceeds After Sale | $46,409 | $59,378 | $73,135 | $87,728 | $103,208 | $119,629 | $137,047 | $155,524 | $175,124 | $195,915 |
| + Cumulative Cash Flow | $649 | $1,638 | $2,977 | $4,675 | $6,744 | $9,196 | $12,040 | $15,290 | $18,957 | $23,054 |
| - Approximate Cash Invested | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) | ($56,851) |
| = Net Profit | ($9,793) | $4,165 | $19,260 | $35,552 | $53,101 | $71,973 | $92,236 | $113,963 | $137,230 | $162,118 |
| Internal Rate of Return | -17.2% | 3.6% | 10.3% | 13.1% | 14.4% | 15.0% | 15.3% | 15.4% | 15.3% | 15.2% |
| Return on Investment | -17.2% | 7.3% | 33.9% | 62.5% | 93.4% | 126.6% | 162.2% | 200.5% | 241.4% | 285.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
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