New Construction in Birmingham Metro
Alabaster, AL 35007
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 | $27,600 | $28,704 | $29,852 | $31,046 | $32,288 | $33,580 | $34,923 | $36,320 | $37,773 | $39,283 |
| Vacancy Losses | ($2,208) | ($2,296) | ($2,388) | ($2,484) | ($2,583) | ($2,686) | ($2,794) | ($2,906) | ($3,022) | ($3,143) |
| Operating Income | $25,392 | $26,408 | $27,464 | $28,563 | $29,705 | $30,893 | $32,129 | $33,414 | $34,751 | $36,141 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,404) | ($2,476) | ($2,551) | ($2,627) | ($2,706) | ($2,787) | ($2,871) | ($2,957) | ($3,046) | ($3,137) |
| Insurance | ($1,480) | ($1,524) | ($1,570) | ($1,617) | ($1,665) | ($1,715) | ($1,767) | ($1,820) | ($1,874) | ($1,931) |
| 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 | ($552) | ($569) | ($586) | ($603) | ($621) | ($640) | ($659) | ($679) | ($699) | ($720) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,916) | ($5,063) | ($5,215) | ($5,372) | ($5,533) | ($5,699) | ($5,870) | ($6,046) | ($6,227) | ($6,414) |
| 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 | $20,476 | $21,344 | $22,249 | $23,191 | $24,172 | $25,194 | $26,259 | $27,368 | $28,523 | $29,727 |
| - Mortgage Payments | ($15,655) | ($15,655) | ($15,655) | ($15,655) | ($15,655) | ($15,655) | ($15,655) | ($16,289) | ($16,289) | ($16,289) |
| = Cash Flow | $4,821 | $5,690 | $6,594 | $7,536 | $8,517 | $9,540 | $10,604 | $11,079 | $12,234 | $13,437 |
| + Principal Reduction | $4,993 | $5,189 | $5,394 | $5,607 | $5,828 | $6,058 | $6,297 | $9,867 | $10,141 | $10,424 |
| + Appreciation | $22,194 | $23,526 | $24,937 | $26,433 | $28,019 | $29,701 | $31,483 | $33,372 | $35,374 | $37,496 |
| = Gross Equity Income | $32,008 | $34,405 | $36,925 | $39,576 | $42,365 | $45,298 | $48,384 | $54,317 | $57,749 | $61,357 |
| Capitalization Rate | 5.2% | 5.1% | 5.1% | 5.0% | 4.9% | 4.8% | 4.7% | 4.6% | 4.6% | 4.5% |
| Cash on Cash Return | 4.9% | 5.8% | 6.7% | 7.6% | 8.6% | 9.6% | 10.7% | 11.2% | 12.4% | 13.6% |
| Return on Equity | 26.7% | 23.2% | 20.7% | 18.8% | 17.3% | 16.2% | 15.2% | 15.0% | 14.2% | 13.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $392,094 | $415,620 | $440,557 | $466,990 | $495,010 | $524,710 | $556,193 | $589,564 | $624,938 | $662,435 |
| - Loan Balance | ($272,432) | ($267,243) | ($261,849) | ($256,242) | ($250,414) | ($244,356) | ($238,059) | ($228,192) | ($218,051) | ($207,627) |
| = Equity | $119,662 | $148,377 | $178,708 | $210,748 | $244,596 | $280,355 | $318,134 | $361,372 | $406,887 | $454,807 |
| 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 | $41,243 | $65,253 | $90,597 | $117,350 | $145,594 | $175,413 | $206,896 | $243,459 | $281,900 | $322,321 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $119,662 | $148,377 | $178,708 | $210,748 | $244,596 | $280,355 | $318,134 | $361,372 | $406,887 | $454,807 |
| - Closing Costs | ($27,447) | ($29,093) | ($30,839) | ($32,689) | ($34,651) | ($36,730) | ($38,933) | ($41,270) | ($43,746) | ($46,370) |
| = Proceeds After Sale | $92,215 | $119,283 | $147,869 | $178,059 | $209,945 | $243,625 | $279,201 | $320,103 | $363,142 | $408,437 |
| + Cumulative Cash Flow | $4,821 | $10,511 | $17,105 | $24,641 | $33,158 | $42,698 | $53,302 | $64,381 | $76,615 | $90,052 |
| - Approximate Cash Invested | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) | ($98,948) |
| = Net Profit | ($1,912) | $30,846 | $66,026 | $103,752 | $144,155 | $187,374 | $233,555 | $285,535 | $340,808 | $399,541 |
| Internal Rate of Return | -1.9% | 14.8% | 19.3% | 20.7% | 21.1% | 21.0% | 20.8% | 20.5% | 20.2% | 19.9% |
| Return on Investment | -1.9% | 31.2% | 66.7% | 104.9% | 145.7% | 189.4% | 236.0% | 288.6% | 344.4% | 403.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.