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 | ($1,544) | ($1,590) | ($1,638) | ($1,687) | ($1,737) | ($1,789) | ($1,843) | ($1,898) | ($1,955) | ($2,014) |
| 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 | ($5,228) | ($5,385) | ($5,546) | ($5,713) | ($5,884) | ($6,061) | ($6,242) | ($6,430) | ($6,623) | ($6,821) |
| 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 | $19,060 | $19,875 | $20,724 | $21,608 | $22,529 | $23,489 | $24,490 | $25,532 | $26,617 | $27,748 |
| - Mortgage Payments | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($17,598) | ($14,091) | ($14,091) | ($14,091) |
| = Cash Flow | $1,462 | $2,277 | $3,126 | $4,010 | $4,932 | $5,892 | $6,892 | $11,440 | $12,526 | $13,657 |
| + 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 | $29,285 | $31,704 | $34,250 | $36,930 | $39,751 | $42,722 | $45,850 | $57,881 | $61,172 | $64,636 |
| Capitalization Rate | 4.7% | 4.6% | 4.5% | 4.4% | 4.4% | 4.3% | 4.2% | 4.2% | 4.1% | 4.0% |
| Cash on Cash Return | 1.3% | 2.1% | 2.8% | 3.6% | 4.5% | 5.3% | 6.3% | 10.4% | 11.4% | 12.4% |
| Return on Equity | 23.6% | 20.6% | 18.5% | 17.0% | 15.7% | 14.8% | 14.0% | 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 | $1,462 | $3,740 | $6,865 | $10,876 | $15,808 | $21,699 | $28,591 | $40,031 | $52,557 | $66,214 |
| - Approximate Cash Invested | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) | ($110,228) |
| = Net Profit | ($13,102) | $16,884 | $49,313 | $84,312 | $122,017 | $162,570 | $206,120 | $261,564 | $320,153 | $382,051 |
| Internal Rate of Return | -11.9% | 7.4% | 13.3% | 15.6% | 16.5% | 16.9% | 16.9% | 17.2% | 17.2% | 17.2% |
| Return on Investment | -11.9% | 15.3% | 44.7% | 76.5% | 110.7% | 147.5% | 187.0% | 237.3% | 290.4% | 346.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.