New Construction in Birmingham Metro
Alabaster, AL 35007
4bd • 2ba • 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 | $24,000 | $24,960 | $25,958 | $26,997 | $28,077 | $29,200 | $30,368 | $31,582 | $32,846 | $34,159 |
| Vacancy Losses | ($1,920) | ($1,997) | ($2,077) | ($2,160) | ($2,246) | ($2,336) | ($2,429) | ($2,527) | ($2,628) | ($2,733) |
| Operating Income | $22,080 | $22,963 | $23,882 | $24,837 | $25,830 | $26,864 | $27,938 | $29,056 | $30,218 | $31,427 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,274) | ($2,343) | ($2,413) | ($2,485) | ($2,560) | ($2,637) | ($2,716) | ($2,797) | ($2,881) | ($2,968) |
| Insurance | ($1,400) | ($1,442) | ($1,485) | ($1,529) | ($1,575) | ($1,623) | ($1,671) | ($1,721) | ($1,773) | ($1,826) |
| 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 | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Maintenance | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,634) | ($4,773) | ($4,916) | ($5,064) | ($5,216) | ($5,372) | ($5,533) | ($5,699) | ($5,870) | ($6,046) |
| 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 | $17,446 | $18,190 | $18,966 | $19,773 | $20,615 | $21,492 | $22,405 | $23,357 | $24,348 | $25,380 |
| - Mortgage Payments | ($14,808) | ($14,808) | ($14,808) | ($14,808) | ($14,808) | ($14,808) | ($14,808) | ($15,409) | ($15,409) | ($15,409) |
| = Cash Flow | $2,638 | $3,382 | $4,157 | $4,965 | $5,807 | $6,683 | $7,597 | $7,948 | $8,939 | $9,972 |
| + Principal Reduction | $4,723 | $4,909 | $5,103 | $5,304 | $5,513 | $5,730 | $5,956 | $9,333 | $9,593 | $9,860 |
| + Appreciation | $20,994 | $22,254 | $23,589 | $25,004 | $26,504 | $28,095 | $29,780 | $31,567 | $33,461 | $35,469 |
| = Gross Equity Income | $28,354 | $30,544 | $32,849 | $35,273 | $37,824 | $40,509 | $43,334 | $48,848 | $51,993 | $55,301 |
| Capitalization Rate | 4.7% | 4.6% | 4.6% | 4.5% | 4.4% | 4.3% | 4.3% | 4.2% | 4.1% | 4.1% |
| Cash on Cash Return | 2.8% | 3.6% | 4.4% | 5.3% | 6.2% | 7.1% | 8.1% | 8.5% | 9.6% | 10.7% |
| Return on Equity | 25.0% | 21.8% | 19.4% | 17.7% | 16.3% | 15.3% | 14.4% | 14.3% | 13.5% | 12.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $370,894 | $393,148 | $416,736 | $441,741 | $468,245 | $496,340 | $526,120 | $557,687 | $591,149 | $626,618 |
| - Loan Balance | ($257,702) | ($252,794) | ($247,691) | ($242,387) | ($236,874) | ($231,144) | ($225,188) | ($215,854) | ($206,262) | ($196,402) |
| = Equity | $113,192 | $140,354 | $169,045 | $199,353 | $231,371 | $265,196 | $300,933 | $341,833 | $384,887 | $430,216 |
| 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 | $39,013 | $61,725 | $85,698 | $111,005 | $137,722 | $165,928 | $195,709 | $230,295 | $266,657 | $304,893 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $113,192 | $140,354 | $169,045 | $199,353 | $231,371 | $265,196 | $300,933 | $341,833 | $384,887 | $430,216 |
| - Closing Costs | ($25,963) | ($27,520) | ($29,172) | ($30,922) | ($32,777) | ($34,744) | ($36,828) | ($39,038) | ($41,380) | ($43,863) |
| = Proceeds After Sale | $87,229 | $112,834 | $139,874 | $168,431 | $198,594 | $230,452 | $264,104 | $302,795 | $343,507 | $386,353 |
| + Cumulative Cash Flow | $2,638 | $6,020 | $10,177 | $15,142 | $20,949 | $27,632 | $35,229 | $43,177 | $52,116 | $62,088 |
| - Approximate Cash Invested | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) | ($93,598) |
| = Net Profit | ($3,731) | $25,255 | $56,453 | $89,975 | $125,944 | $164,486 | $205,735 | $252,374 | $302,025 | $354,843 |
| Internal Rate of Return | -4.0% | 12.8% | 17.4% | 19.0% | 19.4% | 19.4% | 19.2% | 19.0% | 18.8% | 18.5% |
| Return on Investment | -4.0% | 27.0% | 60.3% | 96.1% | 134.6% | 175.7% | 219.8% | 269.6% | 322.7% | 379.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.