New Construction in Birmingham Metro
Pleasant Grove, AL 35127
3bd • 2ba • Built: 2026
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $22,200 | $22,866 | $23,552 | $24,259 | $24,986 | $25,736 | $26,508 | $27,303 | $28,122 | $28,966 |
| Vacancy Losses | ($1,776) | ($1,829) | ($1,884) | ($1,941) | ($1,999) | ($2,059) | ($2,121) | ($2,184) | ($2,250) | ($2,317) |
| Operating Income | $20,424 | $21,037 | $21,668 | $22,318 | $22,987 | $23,677 | $24,387 | $25,119 | $25,873 | $26,649 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,922) | ($4,040) | ($4,161) | ($4,286) | ($4,414) | ($4,547) | ($4,683) | ($4,824) | ($4,968) | ($5,117) |
| Insurance | ($1,060) | ($1,092) | ($1,125) | ($1,158) | ($1,193) | ($1,229) | ($1,266) | ($1,304) | ($1,343) | ($1,383) |
| Management Fees | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($444) | ($457) | ($471) | ($485) | ($500) | ($515) | ($530) | ($546) | ($562) | ($579) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,146) | ($6,330) | ($6,520) | ($6,716) | ($6,917) | ($7,125) | ($7,339) | ($7,559) | ($7,786) | ($8,019) |
| 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 | $14,278 | $14,706 | $15,148 | $15,602 | $16,070 | $16,552 | $17,049 | $17,560 | $18,087 | $18,630 |
| - Mortgage Payments | ($12,441) | ($12,441) | ($12,441) | ($12,441) | ($12,441) | ($13,942) | ($13,942) | ($13,942) | ($13,942) | ($13,942) |
| = Cash Flow | $1,837 | $2,265 | $2,706 | $3,161 | $3,629 | $2,610 | $3,106 | $3,618 | $4,145 | $4,687 |
| + Principal Reduction | $3,067 | $3,216 | $3,372 | $3,536 | $3,707 | $4,962 | $5,216 | $5,483 | $5,764 | $6,059 |
| + Appreciation | $15,900 | $16,854 | $17,865 | $18,937 | $20,073 | $21,278 | $22,554 | $23,908 | $25,342 | $26,863 |
| = Gross Equity Income | $20,804 | $22,335 | $23,943 | $25,633 | $27,409 | $28,850 | $30,877 | $33,009 | $35,250 | $37,609 |
| Capitalization Rate | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.0% | 3.9% |
| Cash on Cash Return | 2.5% | 3.1% | 3.7% | 4.3% | 5.0% | 3.6% | 4.3% | 5.0% | 5.7% | 6.4% |
| Return on Equity | 24.4% | 21.2% | 18.9% | 17.2% | 15.9% | 14.5% | 13.6% | 12.9% | 12.3% | 11.7% |
| 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 | ($195,683) | ($192,467) | ($189,096) | ($185,560) | ($181,853) | ($176,891) | ($171,674) | ($166,191) | ($160,427) | ($154,368) |
| = Equity | $85,217 | $105,287 | $126,524 | $148,996 | $172,777 | $199,017 | $226,788 | $256,179 | $287,285 | $320,206 |
| Loan-to-Value Ratio | 69.7% | 64.6% | 59.9% | 55.5% | 51.3% | 47.1% | 43.1% | 39.3% | 35.8% | 32.5% |
| Potential Cash-Out Refi | $57,127 | $75,511 | $94,962 | $115,541 | $137,314 | $161,426 | $186,942 | $213,942 | $242,514 | $272,749 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $85,217 | $105,287 | $126,524 | $148,996 | $172,777 | $199,017 | $226,788 | $256,179 | $287,285 | $320,206 |
| - 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 | $65,554 | $84,444 | $104,430 | $125,577 | $147,953 | $172,704 | $198,896 | $226,613 | $255,945 | $286,986 |
| + Cumulative Cash Flow | $1,837 | $4,102 | $6,808 | $9,969 | $13,598 | $16,207 | $19,314 | $22,931 | $27,076 | $31,763 |
| - Approximate Cash Invested | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) | ($72,875) |
| = Net Profit | ($5,484) | $15,671 | $38,363 | $62,671 | $88,675 | $116,036 | $145,334 | $176,669 | $210,146 | $245,874 |
| Internal Rate of Return | -7.5% | 10.3% | 15.5% | 17.3% | 17.9% | 18.0% | 17.9% | 17.6% | 17.3% | 17.0% |
| Return on Investment | -7.5% | 21.5% | 52.6% | 86.0% | 121.7% | 159.2% | 199.4% | 242.4% | 288.4% | 337.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.