PRE-LEASED Home - Long-Term Tenant!
Calera, AL 35040
4bd • 2.5ba • Built: 2023
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $20,700 | $21,528 | $22,389 | $23,285 | $24,216 | $25,185 | $26,192 | $27,240 | $28,329 | $29,463 |
| Vacancy Losses | ($1,656) | ($1,722) | ($1,791) | ($1,863) | ($1,937) | ($2,015) | ($2,095) | ($2,179) | ($2,266) | ($2,357) |
| Operating Income | $19,044 | $19,806 | $20,598 | $21,422 | $22,279 | $23,170 | $24,097 | $25,061 | $26,063 | $27,106 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,944) | ($2,002) | ($2,062) | ($2,124) | ($2,187) | ($2,253) | ($2,321) | ($2,390) | ($2,462) | ($2,536) |
| Insurance | ($1,256) | ($1,293) | ($1,332) | ($1,372) | ($1,413) | ($1,456) | ($1,499) | ($1,544) | ($1,591) | ($1,639) |
| Management Fees | ($1,032) | ($1,073) | ($1,116) | ($1,161) | ($1,207) | ($1,256) | ($1,306) | ($1,358) | ($1,412) | ($1,469) |
| 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 | ($414) | ($426) | ($439) | ($452) | ($466) | ($480) | ($494) | ($509) | ($524) | ($540) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,645) | ($4,795) | ($4,950) | ($5,109) | ($5,274) | ($5,444) | ($5,620) | ($5,802) | ($5,990) | ($6,183) |
| 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 | $14,399 | $15,011 | $15,648 | $16,313 | $17,005 | $17,726 | $18,476 | $19,259 | $20,073 | $20,922 |
| - Mortgage Payments | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) | ($14,857) |
| = Cash Flow | ($458) | $154 | $792 | $1,456 | $2,148 | $2,869 | $3,620 | $4,402 | $5,217 | $6,066 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $17,940 | $19,016 | $20,157 | $21,367 | $22,649 | $24,008 | $25,448 | $26,975 | $28,594 | $30,309 |
| = Gross Equity Income | $17,482 | $19,171 | $20,949 | $22,823 | $24,797 | $26,877 | $29,068 | $31,377 | $33,810 | $36,375 |
| Capitalization Rate | 4.5% | 4.5% | 4.4% | 4.3% | 4.2% | 4.2% | 4.1% | 4.0% | 4.0% | 3.9% |
| Cash on Cash Return | -0.5% | 0.2% | 0.9% | 1.6% | 2.4% | 3.2% | 4.1% | 4.9% | 5.9% | 6.8% |
| Return on Equity | 18.9% | 17.2% | 15.9% | 14.9% | 14.1% | 13.4% | 12.9% | 12.4% | 12.0% | 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 | $316,940 | $335,956 | $356,114 | $377,481 | $400,129 | $424,137 | $449,585 | $476,561 | $505,154 | $535,463 |
| - Loan Balance | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) | ($224,250) |
| = Equity | $92,690 | $111,706 | $131,864 | $153,231 | $175,879 | $199,887 | $225,335 | $252,311 | $280,904 | $311,213 |
| Loan-to-Value Ratio | 70.8% | 66.7% | 63.0% | 59.4% | 56.0% | 52.9% | 49.9% | 47.1% | 44.4% | 41.9% |
| Potential Cash-Out Refi | $29,302 | $44,515 | $60,641 | $77,734 | $95,854 | $115,060 | $135,418 | $156,998 | $179,873 | $204,121 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $92,690 | $111,706 | $131,864 | $153,231 | $175,879 | $199,887 | $225,335 | $252,311 | $280,904 | $311,213 |
| - Closing Costs | ($22,186) | ($23,517) | ($24,928) | ($26,424) | ($28,009) | ($29,690) | ($31,471) | ($33,359) | ($35,361) | ($37,482) |
| = Proceeds After Sale | $70,504 | $88,189 | $106,936 | $126,807 | $147,870 | $170,198 | $193,864 | $218,951 | $245,543 | $273,731 |
| + Cumulative Cash Flow | ($458) | ($304) | $488 | $1,944 | $4,092 | $6,961 | $10,581 | $14,983 | $20,200 | $26,266 |
| - Approximate Cash Invested | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) | ($88,953) |
| = Net Profit | ($18,906) | ($1,067) | $18,471 | $39,799 | $63,010 | $88,206 | $115,493 | $144,982 | $176,791 | $211,044 |
| Internal Rate of Return | -21.3% | -0.6% | 6.5% | 9.7% | 11.3% | 12.2% | 12.8% | 13.0% | 13.2% | 13.3% |
| Return on Investment | -21.3% | -1.2% | 20.8% | 44.7% | 70.8% | 99.2% | 129.8% | 163.0% | 198.7% | 237.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.