New Construction in Birmingham Suburbs
McCalla, AL 35111
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 | $21,600 | $22,464 | $23,363 | $24,297 | $25,269 | $26,280 | $27,331 | $28,424 | $29,561 | $30,744 |
| Vacancy Losses | ($1,728) | ($1,797) | ($1,869) | ($1,944) | ($2,022) | ($2,102) | ($2,186) | ($2,274) | ($2,365) | ($2,459) |
| Operating Income | $19,872 | $20,667 | $21,494 | $22,353 | $23,247 | $24,177 | $25,144 | $26,150 | $27,196 | $28,284 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,048) | ($2,109) | ($2,172) | ($2,238) | ($2,305) | ($2,374) |
| Insurance | ($1,120) | ($1,153) | ($1,188) | ($1,223) | ($1,260) | ($1,298) | ($1,337) | ($1,377) | ($1,418) | ($1,461) |
| 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 | ($300) | ($309) | ($318) | ($328) | ($338) | ($348) | ($358) | ($369) | ($380) | ($391) |
| Maintenance | ($432) | ($445) | ($458) | ($472) | ($486) | ($501) | ($516) | ($531) | ($547) | ($564) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,671) | ($3,781) | ($3,895) | ($4,011) | ($4,132) | ($4,256) | ($4,383) | ($4,515) | ($4,650) | ($4,790) |
| 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 | $16,201 | $16,886 | $17,599 | $18,342 | $19,116 | $19,922 | $20,761 | $21,635 | $22,546 | $23,494 |
| - Mortgage Payments | ($11,846) | ($11,846) | ($11,846) | ($11,846) | ($11,846) | ($11,846) | ($11,846) | ($12,326) | ($12,326) | ($12,326) |
| = Cash Flow | $4,355 | $5,040 | $5,753 | $6,496 | $7,270 | $8,076 | $8,915 | $9,309 | $10,220 | $11,168 |
| + Principal Reduction | $3,778 | $3,927 | $4,082 | $4,243 | $4,410 | $4,584 | $4,765 | $7,466 | $7,674 | $7,888 |
| + Appreciation | $16,794 | $17,802 | $18,870 | $20,002 | $21,202 | $22,474 | $23,823 | $25,252 | $26,767 | $28,373 |
| = Gross Equity Income | $24,927 | $26,769 | $28,705 | $30,741 | $32,882 | $35,134 | $37,503 | $42,027 | $44,661 | $47,429 |
| Capitalization Rate | 5.5% | 5.4% | 5.3% | 5.2% | 5.1% | 5.0% | 4.9% | 4.8% | 4.8% | 4.7% |
| Cash on Cash Return | 5.8% | 6.7% | 7.7% | 8.7% | 9.7% | 10.8% | 11.9% | 12.4% | 13.6% | 14.9% |
| Return on Equity | 27.5% | 23.8% | 21.2% | 19.3% | 17.8% | 16.6% | 15.6% | 15.4% | 14.5% | 13.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $296,694 | $314,496 | $333,365 | $353,367 | $374,569 | $397,043 | $420,866 | $446,118 | $472,885 | $501,258 |
| - Loan Balance | ($206,147) | ($202,220) | ($198,139) | ($193,896) | ($189,486) | ($184,902) | ($180,137) | ($172,671) | ($164,997) | ($157,109) |
| = Equity | $90,547 | $112,275 | $135,227 | $159,472 | $185,084 | $212,142 | $240,729 | $273,447 | $307,888 | $344,149 |
| 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 | $31,208 | $49,376 | $68,554 | $88,798 | $110,170 | $132,733 | $156,556 | $184,224 | $213,311 | $243,897 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $90,547 | $112,275 | $135,227 | $159,472 | $185,084 | $212,142 | $240,729 | $273,447 | $307,888 | $344,149 |
| - Closing Costs | ($20,769) | ($22,015) | ($23,336) | ($24,736) | ($26,220) | ($27,793) | ($29,461) | ($31,228) | ($33,102) | ($35,088) |
| = Proceeds After Sale | $69,778 | $90,261 | $111,891 | $134,736 | $158,864 | $184,349 | $211,269 | $242,219 | $274,786 | $309,061 |
| + Cumulative Cash Flow | $4,355 | $9,395 | $15,148 | $21,645 | $28,915 | $36,990 | $45,906 | $55,215 | $65,435 | $76,603 |
| - Approximate Cash Invested | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) |
| = Net Profit | ($740) | $24,783 | $52,166 | $81,507 | $112,905 | $146,466 | $182,301 | $222,561 | $265,348 | $310,791 |
| Internal Rate of Return | -1.0% | 15.8% | 20.2% | 21.6% | 21.9% | 21.8% | 21.5% | 21.2% | 20.9% | 20.5% |
| Return on Investment | -1.0% | 33.1% | 69.7% | 108.9% | 150.8% | 195.6% | 243.5% | 297.3% | 354.4% | 415.1% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.