New Construction in Huntsville Metro
Madison, AL 35757
4bd • 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 | $26,400 | $27,456 | $28,554 | $29,696 | $30,884 | $32,120 | $33,404 | $34,741 | $36,130 | $37,575 |
| Vacancy Losses | ($2,112) | ($2,196) | ($2,284) | ($2,376) | ($2,471) | ($2,570) | ($2,672) | ($2,779) | ($2,890) | ($3,006) |
| Operating Income | $24,288 | $25,260 | $26,270 | $27,321 | $28,414 | $29,550 | $30,732 | $31,961 | $33,240 | $34,569 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,508) | ($2,584) | ($2,661) | ($2,741) | ($2,823) | ($2,908) | ($2,995) | ($3,085) | ($3,178) | ($3,273) |
| Insurance | ($1,621) | ($1,669) | ($1,719) | ($1,771) | ($1,824) | ($1,879) | ($1,935) | ($1,993) | ($2,053) | ($2,115) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($648) | ($667) | ($687) | ($708) | ($729) | ($751) | ($774) | ($797) | ($821) | ($845) |
| Maintenance | ($528) | ($544) | ($560) | ($577) | ($594) | ($612) | ($630) | ($649) | ($669) | ($689) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,305) | ($5,464) | ($5,628) | ($5,797) | ($5,971) | ($6,150) | ($6,335) | ($6,525) | ($6,720) | ($6,922) |
| 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 | $18,983 | $19,795 | $20,642 | $21,524 | $22,443 | $23,400 | $24,397 | $25,437 | $26,519 | $27,647 |
| - Mortgage Payments | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($14,091) | ($14,091) | ($14,091) |
| = Cash Flow | $1,385 | $2,198 | $3,044 | $3,926 | $4,845 | $5,802 | $6,800 | $11,345 | $12,428 | $13,556 |
| + Principal Reduction | $4,669 | $4,884 | $5,108 | $5,343 | $5,588 | $5,845 | $6,113 | $11,626 | $11,743 | $11,861 |
| + Appreciation | $23,154 | $24,543 | $26,016 | $27,577 | $29,231 | $30,985 | $32,844 | $34,815 | $36,904 | $39,118 |
| = Gross Equity Income | $29,208 | $31,624 | $34,168 | $36,845 | $39,664 | $42,632 | $45,757 | $57,786 | $61,075 | $64,535 |
| Capitalization Rate | 4.6% | 4.6% | 4.5% | 4.4% | 4.3% | 4.3% | 4.2% | 4.1% | 4.1% | 4.0% |
| Cash on Cash Return | 1.2% | 1.9% | 2.6% | 3.4% | 4.2% | 5.0% | 5.9% | 9.8% | 10.7% | 11.7% |
| Return on Equity | 23.5% | 20.6% | 18.5% | 16.9% | 15.7% | 14.7% | 13.9% | 15.4% | 14.4% | 13.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $409,054 | $433,597 | $459,613 | $487,190 | $516,421 | $547,407 | $580,251 | $615,066 | $651,970 | $691,088 |
| - Loan Balance | ($284,756) | ($279,872) | ($274,765) | ($269,422) | ($263,834) | ($257,989) | ($251,876) | ($240,250) | ($228,508) | ($216,647) |
| = Equity | $124,298 | $153,725 | $184,849 | $217,768 | $252,587 | $289,417 | $328,375 | $374,816 | $423,462 | $474,441 |
| Loan-to-Value Ratio | 69.6% | 64.5% | 59.8% | 55.3% | 51.1% | 47.1% | 43.4% | 39.1% | 35.0% | 31.3% |
| Potential Cash-Out Refi | $42,487 | $67,005 | $92,926 | $120,330 | $149,303 | $179,936 | $212,325 | $251,803 | $293,068 | $336,224 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $124,298 | $153,725 | $184,849 | $217,768 | $252,587 | $289,417 | $328,375 | $374,816 | $423,462 | $474,441 |
| - Closing Costs | ($28,634) | ($30,352) | ($32,173) | ($34,103) | ($36,149) | ($38,318) | ($40,618) | ($43,055) | ($45,638) | ($48,376) |
| = Proceeds After Sale | $95,664 | $123,373 | $152,676 | $183,665 | $216,438 | $251,099 | $287,757 | $331,761 | $377,824 | $426,065 |
| + Cumulative Cash Flow | $1,385 | $3,583 | $6,627 | $10,553 | $15,398 | $21,200 | $28,000 | $39,345 | $51,773 | $65,329 |
| - Approximate Cash Invested | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) | ($116,017) |
| = Net Profit | ($18,967) | $10,939 | $43,286 | $78,201 | $115,819 | $156,282 | $199,740 | $255,090 | $313,581 | $375,377 |
| Internal Rate of Return | -16.3% | 4.6% | 11.3% | 14.0% | 15.2% | 15.8% | 16.0% | 16.4% | 16.5% | 16.5% |
| Return on Investment | -16.3% | 9.4% | 37.3% | 67.4% | 99.8% | 134.7% | 172.2% | 219.9% | 270.3% | 323.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.