PRE-LEASED Home - Long-Term Tenant!
Chelsea, AL 35043
4bd • 2ba • Built: 2025
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $27,000 | $28,080 | $29,203 | $30,371 | $31,586 | $32,850 | $34,164 | $35,530 | $36,951 | $38,429 |
| Vacancy Losses | ($2,160) | ($2,246) | ($2,336) | ($2,430) | ($2,527) | ($2,628) | ($2,733) | ($2,842) | ($2,956) | ($3,074) |
| Operating Income | $24,840 | $25,834 | $26,867 | $27,942 | $29,059 | $30,222 | $31,431 | $32,688 | $33,995 | $35,355 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,178) | ($2,243) | ($2,310) | ($2,379) | ($2,451) | ($2,524) | ($2,600) | ($2,678) | ($2,758) | ($2,841) |
| Insurance | ($1,407) | ($1,449) | ($1,493) | ($1,537) | ($1,584) | ($1,631) | ($1,680) | ($1,730) | ($1,782) | ($1,836) |
| Management Fees | ($1,032) | ($1,073) | ($1,116) | ($1,161) | ($1,207) | ($1,256) | ($1,306) | ($1,358) | ($1,412) | ($1,469) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) | ($645) | ($664) | ($684) | ($705) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,157) | ($5,322) | ($5,492) | ($5,668) | ($5,849) | ($6,037) | ($6,231) | ($6,431) | ($6,637) | ($6,850) |
| 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 | $19,684 | $20,512 | $21,375 | $22,274 | $23,210 | $24,185 | $25,200 | $26,257 | $27,358 | $28,505 |
| - Mortgage Payments | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) | ($16,645) |
| = Cash Flow | $3,038 | $3,867 | $4,730 | $5,628 | $6,565 | $7,539 | $8,555 | $9,612 | $10,713 | $11,859 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $20,100 | $21,306 | $22,584 | $23,939 | $25,376 | $26,898 | $28,512 | $30,223 | $32,036 | $33,959 |
| = Gross Equity Income | $23,138 | $25,173 | $27,314 | $29,568 | $31,940 | $34,438 | $37,067 | $39,835 | $42,749 | $45,818 |
| Capitalization Rate | 5.5% | 5.4% | 5.4% | 5.3% | 5.2% | 5.1% | 5.0% | 4.9% | 4.8% | 4.8% |
| Cash on Cash Return | 3.0% | 3.9% | 4.7% | 5.6% | 6.6% | 7.6% | 8.6% | 9.6% | 10.7% | 11.9% |
| Return on Equity | 22.3% | 20.1% | 18.5% | 17.2% | 16.2% | 15.4% | 14.7% | 14.1% | 13.6% | 13.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $355,100 | $376,406 | $398,990 | $422,930 | $448,306 | $475,204 | $503,716 | $533,939 | $565,975 | $599,934 |
| - Loan Balance | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) | ($251,250) |
| = Equity | $103,850 | $125,156 | $147,740 | $171,680 | $197,056 | $223,954 | $252,466 | $282,689 | $314,725 | $348,684 |
| 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 | $32,830 | $49,875 | $67,942 | $87,094 | $107,394 | $128,913 | $151,723 | $175,901 | $201,530 | $228,697 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $103,850 | $125,156 | $147,740 | $171,680 | $197,056 | $223,954 | $252,466 | $282,689 | $314,725 | $348,684 |
| - Closing Costs | ($24,857) | ($26,348) | ($27,929) | ($29,605) | ($31,381) | ($33,264) | ($35,260) | ($37,376) | ($39,618) | ($41,995) |
| = Proceeds After Sale | $78,993 | $98,808 | $119,811 | $142,075 | $165,674 | $190,690 | $217,206 | $245,313 | $275,107 | $306,689 |
| + Cumulative Cash Flow | $3,038 | $6,905 | $11,635 | $17,263 | $23,828 | $31,367 | $39,922 | $49,533 | $60,246 | $72,105 |
| - Approximate Cash Invested | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) | ($99,663) |
| = Net Profit | ($17,631) | $6,050 | $31,783 | $59,675 | $89,839 | $122,394 | $157,465 | $195,184 | $235,691 | $279,132 |
| Internal Rate of Return | -17.7% | 3.0% | 9.9% | 13.0% | 14.5% | 15.2% | 15.6% | 15.8% | 15.9% | 15.9% |
| Return on Investment | -17.7% | 6.1% | 31.9% | 59.9% | 90.1% | 122.8% | 158.0% | 195.8% | 236.5% | 280.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.