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 | $25,200 | $26,208 | $27,256 | $28,347 | $29,480 | $30,660 | $31,886 | $33,161 | $34,488 | $35,867 |
| Vacancy Losses | ($2,016) | ($2,097) | ($2,181) | ($2,268) | ($2,358) | ($2,453) | ($2,551) | ($2,653) | ($2,759) | ($2,869) |
| Operating Income | $23,184 | $24,111 | $25,076 | $26,079 | $27,122 | $28,207 | $29,335 | $30,509 | $31,729 | $32,998 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,477) | ($2,552) | ($2,628) | ($2,707) | ($2,788) | ($2,872) | ($2,958) | ($3,047) | ($3,138) | ($3,233) |
| Insurance | ($1,525) | ($1,570) | ($1,617) | ($1,666) | ($1,716) | ($1,767) | ($1,820) | ($1,875) | ($1,931) | ($1,989) |
| 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 | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,986) | ($5,136) | ($5,290) | ($5,448) | ($5,612) | ($5,780) | ($5,954) | ($6,132) | ($6,316) | ($6,506) |
| 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 | $18,198 | $18,976 | $19,786 | $20,630 | $21,510 | $22,427 | $23,382 | $24,376 | $25,413 | $26,492 |
| - Mortgage Payments | ($16,131) | ($16,131) | ($16,131) | ($16,131) | ($16,131) | ($16,131) | ($16,131) | ($16,785) | ($16,785) | ($16,785) |
| = Cash Flow | $2,067 | $2,845 | $3,655 | $4,500 | $5,379 | $6,296 | $7,251 | $7,592 | $8,628 | $9,708 |
| + Principal Reduction | $5,144 | $5,347 | $5,558 | $5,777 | $6,005 | $6,242 | $6,488 | $10,167 | $10,450 | $10,741 |
| + Appreciation | $22,869 | $24,241 | $25,696 | $27,237 | $28,872 | $30,604 | $32,440 | $34,387 | $36,450 | $38,637 |
| = Gross Equity Income | $30,080 | $32,433 | $34,909 | $37,514 | $40,256 | $43,142 | $46,179 | $52,145 | $55,527 | $59,085 |
| Capitalization Rate | 4.5% | 4.4% | 4.4% | 4.3% | 4.2% | 4.1% | 4.1% | 4.0% | 3.9% | 3.9% |
| Cash on Cash Return | 2.0% | 2.8% | 3.6% | 4.4% | 5.3% | 6.2% | 7.1% | 7.4% | 8.5% | 9.5% |
| Return on Equity | 24.4% | 21.2% | 19.0% | 17.3% | 16.0% | 14.9% | 14.1% | 14.0% | 13.2% | 12.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $404,019 | $428,260 | $453,956 | $481,193 | $510,065 | $540,669 | $573,109 | $607,495 | $643,945 | $682,582 |
| - Loan Balance | ($280,718) | ($275,371) | ($269,813) | ($264,035) | ($258,030) | ($251,788) | ($245,299) | ($235,133) | ($224,683) | ($213,943) |
| = Equity | $123,301 | $152,889 | $184,143 | $217,158 | $252,035 | $288,881 | $327,809 | $372,362 | $419,262 | $468,639 |
| 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 | $42,497 | $67,237 | $93,352 | $120,919 | $150,022 | $180,747 | $213,188 | $250,863 | $290,473 | $332,123 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $123,301 | $152,889 | $184,143 | $217,158 | $252,035 | $288,881 | $327,809 | $372,362 | $419,262 | $468,639 |
| - Closing Costs | ($28,281) | ($29,978) | ($31,777) | ($33,684) | ($35,705) | ($37,847) | ($40,118) | ($42,525) | ($45,076) | ($47,781) |
| = Proceeds After Sale | $95,020 | $122,911 | $152,366 | $183,474 | $216,330 | $251,034 | $287,692 | $329,838 | $374,186 | $420,858 |
| + Cumulative Cash Flow | $2,067 | $4,912 | $8,567 | $13,067 | $18,446 | $24,742 | $31,993 | $39,585 | $48,213 | $57,920 |
| - Approximate Cash Invested | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) | ($101,958) |
| = Net Profit | ($4,871) | $25,865 | $58,976 | $94,584 | $132,819 | $173,819 | $217,727 | $267,465 | $320,441 | $376,821 |
| Internal Rate of Return | -4.8% | 12.1% | 16.7% | 18.3% | 18.8% | 18.8% | 18.6% | 18.5% | 18.2% | 17.9% |
| Return on Investment | -4.8% | 25.4% | 57.8% | 92.8% | 130.3% | 170.5% | 213.5% | 262.3% | 314.3% | 369.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.