New Construction w/ 6% Seller Concession
Tuscaloosa, AL 35405
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 | $20,340 | $20,950 | $21,579 | $22,226 | $22,893 | $23,580 | $24,287 | $25,016 | $25,766 | $26,539 |
| Vacancy Losses | ($1,627) | ($1,676) | ($1,726) | ($1,778) | ($1,831) | ($1,886) | ($1,943) | ($2,001) | ($2,061) | ($2,123) |
| Operating Income | $18,713 | $19,274 | $19,852 | $20,448 | $21,061 | $21,693 | $22,344 | $23,014 | $23,705 | $24,416 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,749) | ($1,802) | ($1,856) | ($1,912) | ($1,969) | ($2,028) | ($2,089) | ($2,151) | ($2,216) | ($2,282) |
| Insurance | ($750) | ($772) | ($795) | ($819) | ($844) | ($869) | ($895) | ($922) | ($950) | ($978) |
| 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 | ($500) | ($515) | ($530) | ($546) | ($563) | ($580) | ($597) | ($615) | ($633) | ($652) |
| Maintenance | ($407) | ($419) | ($432) | ($445) | ($458) | ($472) | ($486) | ($500) | ($515) | ($531) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,406) | ($3,508) | ($3,613) | ($3,722) | ($3,833) | ($3,948) | ($4,067) | ($4,189) | ($4,314) | ($4,444) |
| 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 | $15,307 | $15,766 | $16,239 | $16,726 | $17,228 | $17,745 | $18,277 | $18,826 | $19,391 | $19,972 |
| - Mortgage Payments | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) | ($11,011) |
| = Cash Flow | $4,296 | $4,755 | $5,228 | $5,715 | $6,217 | $6,734 | $7,266 | $7,815 | $8,379 | $8,961 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $14,994 | $15,894 | $16,847 | $17,858 | $18,930 | $20,065 | $21,269 | $22,545 | $23,898 | $25,332 |
| = Gross Equity Income | $19,290 | $20,649 | $22,075 | $23,573 | $25,147 | $26,799 | $28,536 | $30,360 | $32,278 | $34,293 |
| Capitalization Rate | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% |
| Cash on Cash Return | 6.4% | 7.0% | 7.7% | 8.5% | 9.2% | 10.0% | 10.8% | 11.6% | 12.4% | 13.3% |
| Return on Equity | 24.9% | 22.1% | 20.0% | 18.4% | 17.1% | 16.0% | 15.2% | 14.4% | 13.7% | 13.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $264,894 | $280,788 | $297,635 | $315,493 | $334,423 | $354,488 | $375,757 | $398,303 | $422,201 | $447,533 |
| - Loan Balance | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) | ($187,425) |
| = Equity | $77,469 | $93,363 | $110,210 | $128,068 | $146,998 | $167,063 | $188,332 | $210,878 | $234,776 | $260,108 |
| 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 | $50,980 | $65,284 | $80,446 | $96,519 | $113,555 | $131,614 | $150,756 | $171,047 | $192,556 | $215,355 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $77,469 | $93,363 | $110,210 | $128,068 | $146,998 | $167,063 | $188,332 | $210,878 | $234,776 | $260,108 |
| - Closing Costs | ($18,543) | ($19,655) | ($20,834) | ($22,085) | ($23,410) | ($24,814) | ($26,303) | ($27,881) | ($29,554) | ($31,327) |
| = Proceeds After Sale | $58,926 | $73,708 | $89,375 | $105,983 | $123,588 | $142,249 | $162,029 | $182,996 | $205,222 | $228,781 |
| + Cumulative Cash Flow | $4,296 | $9,051 | $14,279 | $19,994 | $26,211 | $32,945 | $40,212 | $48,026 | $56,405 | $65,367 |
| - Approximate Cash Invested | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) | ($67,473) |
| = Net Profit | ($4,251) | $15,285 | $36,182 | $58,505 | $82,326 | $107,721 | $134,768 | $163,550 | $194,154 | $226,674 |
| Internal Rate of Return | -6.3% | 11.1% | 16.2% | 18.2% | 18.9% | 19.2% | 19.2% | 19.0% | 18.8% | 18.6% |
| Return on Investment | -6.3% | 22.7% | 53.6% | 86.7% | 122.0% | 159.7% | 199.7% | 242.4% | 287.8% | 335.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.