New Construction in Birmingham Suburbs
Springville, AL 35146
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 | $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 | ($1,917) | ($1,974) | ($2,034) | ($2,095) | ($2,157) | ($2,222) | ($2,289) | ($2,357) | ($2,428) | ($2,501) |
| Insurance | ($1,180) | ($1,215) | ($1,251) | ($1,289) | ($1,328) | ($1,367) | ($1,409) | ($1,451) | ($1,494) | ($1,539) |
| 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 | ($552) | ($569) | ($586) | ($603) | ($621) | ($640) | ($659) | ($679) | ($699) | ($720) |
| Maintenance | ($444) | ($457) | ($471) | ($485) | ($500) | ($515) | ($530) | ($546) | ($562) | ($579) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,092) | ($4,215) | ($4,342) | ($4,472) | ($4,606) | ($4,744) | ($4,887) | ($5,033) | ($5,184) | ($5,340) |
| 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 | $16,332 | $17,026 | $17,749 | $18,502 | $19,287 | $20,105 | $20,956 | $21,843 | $22,767 | $23,730 |
| - Mortgage Payments | ($12,481) | ($12,481) | ($12,481) | ($12,481) | ($12,481) | ($12,481) | ($12,481) | ($12,987) | ($12,987) | ($12,987) |
| = Cash Flow | $3,851 | $4,545 | $5,268 | $6,022 | $6,807 | $7,624 | $8,476 | $8,857 | $9,781 | $10,743 |
| + Principal Reduction | $3,980 | $4,137 | $4,300 | $4,470 | $4,646 | $4,830 | $5,020 | $7,866 | $8,085 | $8,310 |
| + Appreciation | $17,694 | $18,756 | $19,881 | $21,074 | $22,338 | $23,679 | $25,099 | $26,605 | $28,202 | $29,894 |
| = Gross Equity Income | $25,525 | $27,438 | $29,450 | $31,566 | $33,791 | $36,132 | $38,595 | $43,328 | $46,067 | $48,947 |
| Capitalization Rate | 5.2% | 5.1% | 5.1% | 5.0% | 4.9% | 4.8% | 4.7% | 4.6% | 4.6% | 4.5% |
| Cash on Cash Return | 4.9% | 5.8% | 6.7% | 7.6% | 8.6% | 9.7% | 10.7% | 11.2% | 12.4% | 13.6% |
| Return on Equity | 26.8% | 23.2% | 20.7% | 18.8% | 17.3% | 16.2% | 15.2% | 15.0% | 14.2% | 13.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $312,594 | $331,350 | $351,231 | $372,304 | $394,643 | $418,321 | $443,421 | $470,026 | $498,227 | $528,121 |
| - Loan Balance | ($217,195) | ($213,057) | ($208,757) | ($204,287) | ($199,640) | ($194,811) | ($189,791) | ($181,924) | ($173,839) | ($165,529) |
| = Equity | $95,399 | $118,292 | $142,474 | $168,018 | $195,002 | $223,511 | $253,630 | $288,101 | $324,388 | $362,592 |
| 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 | $32,880 | $52,022 | $72,228 | $93,557 | $116,074 | $139,846 | $164,946 | $194,096 | $224,743 | $256,968 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,399 | $118,292 | $142,474 | $168,018 | $195,002 | $223,511 | $253,630 | $288,101 | $324,388 | $362,592 |
| - Closing Costs | ($21,882) | ($23,194) | ($24,586) | ($26,061) | ($27,625) | ($29,282) | ($31,039) | ($32,902) | ($34,876) | ($36,968) |
| = Proceeds After Sale | $73,518 | $95,098 | $117,887 | $141,956 | $167,377 | $194,228 | $222,591 | $255,200 | $289,512 | $325,623 |
| + Cumulative Cash Flow | $3,851 | $8,396 | $13,664 | $19,686 | $26,493 | $34,117 | $42,592 | $51,449 | $61,230 | $71,973 |
| - Approximate Cash Invested | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) | ($78,886) |
| = Net Profit | ($1,517) | $24,608 | $52,666 | $82,757 | $114,984 | $149,459 | $186,297 | $227,763 | $271,856 | $318,711 |
| Internal Rate of Return | -1.9% | 14.9% | 19.3% | 20.8% | 21.1% | 21.0% | 20.8% | 20.5% | 20.2% | 19.9% |
| Return on Investment | -1.9% | 31.2% | 66.8% | 104.9% | 145.8% | 189.5% | 236.2% | 288.7% | 344.6% | 404.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.