PRE-LEASED Home - Long-Term Tenant!
Hoover, AL 35244
3bd • 2ba • Built: 2016
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $21,540 | $22,402 | $23,298 | $24,230 | $25,199 | $26,207 | $27,255 | $28,345 | $29,479 | $30,658 |
| Vacancy Losses | ($1,723) | ($1,792) | ($1,864) | ($1,938) | ($2,016) | ($2,097) | ($2,180) | ($2,268) | ($2,358) | ($2,453) |
| Operating Income | $19,817 | $20,609 | $21,434 | $22,291 | $23,183 | $24,110 | $25,075 | $26,078 | $27,121 | $28,205 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,820) | ($1,875) | ($1,931) | ($1,989) | ($2,048) | ($2,110) | ($2,173) | ($2,238) | ($2,306) | ($2,375) |
| Insurance | ($1,176) | ($1,211) | ($1,248) | ($1,285) | ($1,324) | ($1,363) | ($1,404) | ($1,446) | ($1,490) | ($1,534) |
| 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 | ($792) | ($816) | ($840) | ($865) | ($891) | ($918) | ($946) | ($974) | ($1,003) | ($1,033) |
| Maintenance | ($431) | ($444) | ($457) | ($471) | ($485) | ($499) | ($514) | ($530) | ($546) | ($562) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,251) | ($5,419) | ($5,592) | ($5,771) | ($5,956) | ($6,146) | ($6,343) | ($6,547) | ($6,757) | ($6,973) |
| 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 | $14,566 | $15,191 | $15,842 | $16,520 | $17,227 | $17,964 | $18,731 | $19,531 | $20,364 | $21,232 |
| - Mortgage Payments | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) | ($12,985) |
| = Cash Flow | $1,581 | $2,206 | $2,857 | $3,535 | $4,242 | $4,979 | $5,746 | $6,546 | $7,379 | $8,247 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $16,800 | $17,808 | $18,876 | $20,009 | $21,210 | $22,482 | $23,831 | $25,261 | $26,777 | $28,383 |
| = Gross Equity Income | $18,381 | $20,014 | $21,733 | $23,544 | $25,452 | $27,461 | $29,577 | $31,807 | $34,156 | $36,630 |
| Capitalization Rate | 4.9% | 4.8% | 4.8% | 4.7% | 4.6% | 4.5% | 4.4% | 4.4% | 4.3% | 4.2% |
| Cash on Cash Return | 1.6% | 2.3% | 2.9% | 3.6% | 4.3% | 5.1% | 5.9% | 6.7% | 7.5% | 8.4% |
| Return on Equity | 18.2% | 16.9% | 15.8% | 14.9% | 14.2% | 13.6% | 13.1% | 12.7% | 12.3% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $296,800 | $314,608 | $333,484 | $353,494 | $374,703 | $397,185 | $421,016 | $446,277 | $473,054 | $501,437 |
| - Loan Balance | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) | ($196,000) |
| = Equity | $100,800 | $118,608 | $137,484 | $157,494 | $178,703 | $201,185 | $225,016 | $250,277 | $277,054 | $305,437 |
| Loan-to-Value Ratio | 66.0% | 62.3% | 58.8% | 55.4% | 52.3% | 49.3% | 46.6% | 43.9% | 41.4% | 39.1% |
| Potential Cash-Out Refi | $41,440 | $55,686 | $70,788 | $86,795 | $103,763 | $121,748 | $140,813 | $161,022 | $182,443 | $205,150 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $100,800 | $118,608 | $137,484 | $157,494 | $178,703 | $201,185 | $225,016 | $250,277 | $277,054 | $305,437 |
| - Closing Costs | ($20,776) | ($22,023) | ($23,344) | ($24,745) | ($26,229) | ($27,803) | ($29,471) | ($31,239) | ($33,114) | ($35,101) |
| = Proceeds After Sale | $80,024 | $96,585 | $114,141 | $132,749 | $152,474 | $173,382 | $195,545 | $219,038 | $243,940 | $270,337 |
| + Cumulative Cash Flow | $1,581 | $3,787 | $6,644 | $10,179 | $14,422 | $19,400 | $25,147 | $31,693 | $39,072 | $47,319 |
| - Approximate Cash Invested | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) | ($97,860) |
| = Net Profit | ($16,255) | $2,512 | $22,924 | $45,068 | $69,035 | $94,923 | $122,832 | $152,871 | $185,152 | $219,796 |
| Internal Rate of Return | -16.6% | 1.3% | 7.4% | 10.2% | 11.6% | 12.5% | 12.9% | 13.2% | 13.4% | 13.4% |
| Return on Investment | -16.6% | 2.6% | 23.4% | 46.1% | 70.5% | 97.0% | 125.5% | 156.2% | 189.2% | 224.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.