New Construction in Birmingham Metro
Chelsea, AL 35147
3bd • 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 | $21,000 | $21,840 | $22,714 | $23,622 | $24,567 | $25,550 | $26,572 | $27,635 | $28,740 | $29,890 |
| Vacancy Losses | ($1,680) | ($1,747) | ($1,817) | ($1,890) | ($1,965) | ($2,044) | ($2,126) | ($2,211) | ($2,299) | ($2,391) |
| Operating Income | $19,320 | $20,093 | $20,897 | $21,732 | $22,602 | $23,506 | $24,446 | $25,424 | $26,441 | $27,498 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,884) | ($1,941) | ($1,999) | ($2,059) | ($2,121) | ($2,184) | ($2,250) | ($2,318) | ($2,387) | ($2,459) |
| Insurance | ($1,160) | ($1,194) | ($1,230) | ($1,267) | ($1,305) | ($1,344) | ($1,385) | ($1,426) | ($1,469) | ($1,513) |
| 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 | ($240) | ($247) | ($255) | ($262) | ($270) | ($278) | ($287) | ($295) | ($304) | ($313) |
| Maintenance | ($420) | ($433) | ($446) | ($459) | ($473) | ($487) | ($502) | ($517) | ($532) | ($548) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,704) | ($3,815) | ($3,930) | ($4,047) | ($4,169) | ($4,294) | ($4,423) | ($4,555) | ($4,692) | ($4,833) |
| 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 | $15,616 | $16,278 | $16,967 | $17,685 | $18,433 | $19,212 | $20,023 | $20,868 | $21,749 | $22,666 |
| - Mortgage Payments | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,766) | ($12,766) | ($12,766) |
| = Cash Flow | $3,347 | $4,009 | $4,698 | $5,416 | $6,164 | $6,943 | $7,754 | $8,102 | $8,982 | $9,899 |
| + Principal Reduction | $3,913 | $4,067 | $4,228 | $4,394 | $4,568 | $4,748 | $4,935 | $7,733 | $7,948 | $8,169 |
| + Appreciation | $17,394 | $18,438 | $19,544 | $20,717 | $21,960 | $23,277 | $24,674 | $26,154 | $27,723 | $29,387 |
| = Gross Equity Income | $24,654 | $26,513 | $28,469 | $30,527 | $32,691 | $34,968 | $37,363 | $41,989 | $44,654 | $47,455 |
| Capitalization Rate | 5.1% | 5.0% | 4.9% | 4.8% | 4.8% | 4.7% | 4.6% | 4.5% | 4.4% | 4.4% |
| Cash on Cash Return | 4.3% | 5.2% | 6.1% | 7.0% | 7.9% | 9.0% | 10.0% | 10.4% | 11.6% | 12.8% |
| Return on Equity | 26.3% | 22.8% | 20.3% | 18.5% | 17.1% | 15.9% | 15.0% | 14.8% | 14.0% | 13.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $307,294 | $325,732 | $345,276 | $365,992 | $387,952 | $411,229 | $435,902 | $462,057 | $489,780 | $519,167 |
| - Loan Balance | ($213,512) | ($209,445) | ($205,218) | ($200,824) | ($196,256) | ($191,508) | ($186,573) | ($178,841) | ($170,893) | ($162,723) |
| = Equity | $93,782 | $116,286 | $140,058 | $165,169 | $191,696 | $219,720 | $249,329 | $283,216 | $318,887 | $356,443 |
| 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 | $32,323 | $51,140 | $71,003 | $91,970 | $114,105 | $137,475 | $162,149 | $190,805 | $220,931 | $252,610 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $93,782 | $116,286 | $140,058 | $165,169 | $191,696 | $219,720 | $249,329 | $283,216 | $318,887 | $356,443 |
| - Closing Costs | ($21,511) | ($22,801) | ($24,169) | ($25,619) | ($27,157) | ($28,786) | ($30,513) | ($32,344) | ($34,285) | ($36,342) |
| = Proceeds After Sale | $72,271 | $93,485 | $115,888 | $139,549 | $164,539 | $190,934 | $218,816 | $250,872 | $284,603 | $320,102 |
| + Cumulative Cash Flow | $3,347 | $7,356 | $12,054 | $17,470 | $23,634 | $30,577 | $38,331 | $46,433 | $55,415 | $65,315 |
| - Approximate Cash Invested | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) | ($77,548) |
| = Net Profit | ($1,930) | $23,293 | $50,394 | $79,471 | $110,625 | $143,963 | $179,599 | $219,757 | $262,470 | $307,868 |
| Internal Rate of Return | -2.5% | 14.3% | 18.8% | 20.3% | 20.6% | 20.6% | 20.3% | 20.1% | 19.8% | 19.5% |
| Return on Investment | -2.5% | 30.0% | 65.0% | 102.5% | 142.7% | 185.6% | 231.6% | 283.4% | 338.5% | 397.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.