New Construction in Birmingham Metro - Townhouse
Alabaster, AL 35007
3bd • 2.5ba • 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 | $22,200 | $23,088 | $24,012 | $24,972 | $25,971 | $27,010 | $28,090 | $29,214 | $30,382 | $31,598 |
| Vacancy Losses | ($1,776) | ($1,847) | ($1,921) | ($1,998) | ($2,078) | ($2,161) | ($2,247) | ($2,337) | ($2,431) | ($2,528) |
| Operating Income | $20,424 | $21,241 | $22,091 | $22,974 | $23,893 | $24,849 | $25,843 | $26,877 | $27,952 | $29,070 |
| 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 | ($660) | ($680) | ($700) | ($721) | ($743) | ($765) | ($788) | ($812) | ($836) | ($861) |
| Maintenance | ($444) | ($457) | ($471) | ($485) | ($500) | ($515) | ($530) | ($546) | ($562) | ($579) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,148) | ($4,272) | ($4,401) | ($4,533) | ($4,669) | ($4,809) | ($4,953) | ($5,101) | ($5,254) | ($5,412) |
| 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 | $16,276 | $16,969 | $17,690 | $18,442 | $19,225 | $20,040 | $20,890 | $21,775 | $22,697 | $23,658 |
| - Mortgage Payments | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,269) | ($12,766) | ($12,766) | ($12,766) |
| = Cash Flow | $4,007 | $4,700 | $5,421 | $6,173 | $6,956 | $7,771 | $8,621 | $9,009 | $9,931 | $10,891 |
| + 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 | $25,314 | $27,204 | $29,193 | $31,283 | $33,483 | $35,796 | $38,230 | $42,896 | $45,602 | $48,447 |
| Capitalization Rate | 5.3% | 5.2% | 5.1% | 5.0% | 5.0% | 4.9% | 4.8% | 4.7% | 4.6% | 4.6% |
| Cash on Cash Return | 5.2% | 6.1% | 7.0% | 8.0% | 9.0% | 10.0% | 11.1% | 11.6% | 12.8% | 14.0% |
| Return on Equity | 27.0% | 23.4% | 20.8% | 18.9% | 17.5% | 16.3% | 15.3% | 15.1% | 14.3% | 13.6% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $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 | $4,007 | $8,707 | $14,128 | $20,301 | $27,256 | $35,028 | $43,649 | $52,658 | $62,588 | $73,479 |
| - 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 | ($1,270) | $24,644 | $52,468 | $82,301 | $114,247 | $148,414 | $184,917 | $225,981 | $269,643 | $316,033 |
| Internal Rate of Return | -1.6% | 15.1% | 19.6% | 21.0% | 21.3% | 21.3% | 21.0% | 20.7% | 20.4% | 20.1% |
| Return on Investment | -1.6% | 31.8% | 67.7% | 106.1% | 147.3% | 191.4% | 238.5% | 291.4% | 347.7% | 407.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.