New Construction in Birmingham Metro
Chelsea, AL 35147
4bd • 2.5ba • 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 | $23,088 | $24,012 | $24,972 | $25,971 | $27,010 | $28,090 | $29,214 | $30,382 | $31,598 |
| Vacancy Losses | ($1,776) | ($1,847) | ($1,921) | ($1,998) | ($2,078) | ($2,161) | ($2,247) | ($2,337) | ($2,431) | ($2,528) |
| Operating Income | $20,424 | $21,241 | $22,091 | $22,974 | $23,893 | $24,849 | $25,843 | $26,877 | $27,952 | $29,070 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,047) | ($2,108) | ($2,172) | ($2,237) | ($2,304) | ($2,373) | ($2,444) | ($2,517) | ($2,593) | ($2,671) |
| Insurance | ($1,260) | ($1,297) | ($1,336) | ($1,376) | ($1,418) | ($1,460) | ($1,504) | ($1,549) | ($1,596) | ($1,643) |
| 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 | ($240) | ($247) | ($255) | ($262) | ($270) | ($278) | ($287) | ($295) | ($304) | ($313) |
| Maintenance | ($444) | ($457) | ($471) | ($485) | ($500) | ($515) | ($530) | ($546) | ($562) | ($579) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,990) | ($4,110) | ($4,233) | ($4,360) | ($4,491) | ($4,626) | ($4,765) | ($4,908) | ($5,055) | ($5,207) |
| 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 | $16,434 | $17,131 | $17,857 | $18,614 | $19,402 | $20,223 | $21,078 | $21,969 | $22,897 | $23,863 |
| - Mortgage Payments | ($13,327) | ($13,327) | ($13,327) | ($13,327) | ($13,327) | ($13,327) | ($13,327) | ($13,867) | ($13,867) | ($13,867) |
| = Cash Flow | $3,107 | $3,804 | $4,530 | $5,287 | $6,075 | $6,896 | $7,751 | $8,102 | $9,029 | $9,996 |
| + Principal Reduction | $4,250 | $4,418 | $4,592 | $4,773 | $4,961 | $5,157 | $5,361 | $8,399 | $8,633 | $8,874 |
| + Appreciation | $18,894 | $20,028 | $21,229 | $22,503 | $23,853 | $25,284 | $26,802 | $28,410 | $30,114 | $31,921 |
| = Gross Equity Income | $26,251 | $28,249 | $30,352 | $32,563 | $34,890 | $37,338 | $39,913 | $44,911 | $47,777 | $50,791 |
| Capitalization Rate | 4.9% | 4.8% | 4.8% | 4.7% | 4.6% | 4.5% | 4.5% | 4.4% | 4.3% | 4.2% |
| Cash on Cash Return | 3.7% | 4.5% | 5.4% | 6.3% | 7.2% | 8.2% | 9.2% | 9.6% | 10.7% | 11.9% |
| Return on Equity | 25.8% | 22.4% | 20.0% | 18.1% | 16.8% | 15.6% | 14.7% | 14.6% | 13.8% | 13.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $333,794 | $353,822 | $375,051 | $397,554 | $421,407 | $446,692 | $473,493 | $501,903 | $532,017 | $563,938 |
| - Loan Balance | ($231,925) | ($227,507) | ($222,915) | ($218,142) | ($213,180) | ($208,023) | ($202,663) | ($194,263) | ($185,630) | ($176,756) |
| = Equity | $101,869 | $126,315 | $152,136 | $179,412 | $208,227 | $238,668 | $270,831 | $307,640 | $346,387 | $387,182 |
| Loan-to-Value Ratio | 69.5% | 64.3% | 59.4% | 54.9% | 50.6% | 46.6% | 42.8% | 38.7% | 34.9% | 31.3% |
| Potential Cash-Out Refi | $35,110 | $55,550 | $77,126 | $99,901 | $123,945 | $149,330 | $176,132 | $207,259 | $239,984 | $274,394 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $101,869 | $126,315 | $152,136 | $179,412 | $208,227 | $238,668 | $270,831 | $307,640 | $346,387 | $387,182 |
| - Closing Costs | ($23,366) | ($24,768) | ($26,254) | ($27,829) | ($29,499) | ($31,268) | ($33,145) | ($35,133) | ($37,241) | ($39,476) |
| = Proceeds After Sale | $78,504 | $101,547 | $125,882 | $151,583 | $178,728 | $207,400 | $237,686 | $272,506 | $309,146 | $347,706 |
| + Cumulative Cash Flow | $3,107 | $6,910 | $11,441 | $16,727 | $22,802 | $29,698 | $37,449 | $45,551 | $54,580 | $64,576 |
| - Approximate Cash Invested | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) | ($84,236) |
| = Net Profit | ($2,626) | $24,222 | $53,087 | $84,075 | $117,295 | $152,863 | $190,900 | $233,822 | $279,490 | $328,047 |
| Internal Rate of Return | -3.1% | 13.7% | 18.2% | 19.7% | 20.1% | 20.1% | 19.9% | 19.7% | 19.4% | 19.1% |
| Return on Investment | -3.1% | 28.8% | 63.0% | 99.8% | 139.2% | 181.5% | 226.6% | 277.6% | 331.8% | 389.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.