New Construction in Birmingham Metro
Pleasant Grove, AL 35127
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 | $22,800 | $23,484 | $24,189 | $24,914 | $25,662 | $26,431 | $27,224 | $28,041 | $28,882 | $29,749 |
| Vacancy Losses | ($1,824) | ($1,879) | ($1,935) | ($1,993) | ($2,053) | ($2,115) | ($2,178) | ($2,243) | ($2,311) | ($2,380) |
| Operating Income | $20,976 | $21,605 | $22,253 | $22,921 | $23,609 | $24,317 | $25,046 | $25,798 | $26,572 | $27,369 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,700) | ($2,781) | ($2,864) | ($2,950) | ($3,039) | ($3,130) | ($3,224) | ($3,321) | ($3,420) | ($3,523) |
| Insurance | ($1,080) | ($1,112) | ($1,146) | ($1,180) | ($1,216) | ($1,252) | ($1,290) | ($1,328) | ($1,368) | ($1,409) |
| Management Fees | ($1,678) | ($1,728) | ($1,780) | ($1,834) | ($1,889) | ($1,945) | ($2,004) | ($2,064) | ($2,126) | ($2,190) |
| 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 | ($456) | ($470) | ($484) | ($498) | ($513) | ($529) | ($544) | ($561) | ($578) | ($595) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,914) | ($6,092) | ($6,274) | ($6,462) | ($6,656) | ($6,856) | ($7,062) | ($7,274) | ($7,492) | ($7,717) |
| 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 | $15,062 | $15,514 | $15,979 | $16,459 | $16,952 | $17,461 | $17,985 | $18,524 | $19,080 | $19,652 |
| - Mortgage Payments | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) | ($13,607) |
| = Cash Flow | $1,455 | $1,906 | $2,372 | $2,851 | $3,345 | $3,854 | $4,377 | $4,917 | $5,473 | $6,045 |
| + Principal Reduction | $2,791 | $2,945 | $3,107 | $3,278 | $3,459 | $3,649 | $3,850 | $4,063 | $4,286 | $4,523 |
| + Appreciation | $16,200 | $17,172 | $18,202 | $19,294 | $20,452 | $21,679 | $22,980 | $24,359 | $25,820 | $27,370 |
| = Gross Equity Income | $20,446 | $22,023 | $23,681 | $25,424 | $27,256 | $29,182 | $31,208 | $33,338 | $35,579 | $37,937 |
| Capitalization Rate | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 2.0% | 2.6% | 3.3% | 3.9% | 4.6% | 5.3% | 6.0% | 6.7% | 7.5% | 8.3% |
| Return on Equity | 23.6% | 20.7% | 18.5% | 16.9% | 15.6% | 14.6% | 13.8% | 13.1% | 12.5% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $286,200 | $303,372 | $321,574 | $340,869 | $361,321 | $383,000 | $405,980 | $430,339 | $456,159 | $483,529 |
| - Loan Balance | ($199,709) | ($196,764) | ($193,657) | ($190,379) | ($186,920) | ($183,271) | ($179,420) | ($175,358) | ($171,072) | ($166,549) |
| = Equity | $86,491 | $106,608 | $127,917 | $150,490 | $174,401 | $199,729 | $226,560 | $254,981 | $285,088 | $316,980 |
| Loan-to-Value Ratio | 69.8% | 64.9% | 60.2% | 55.9% | 51.7% | 47.9% | 44.2% | 40.7% | 37.5% | 34.4% |
| Potential Cash-Out Refi | $57,871 | $76,271 | $95,760 | $116,403 | $138,269 | $161,429 | $185,962 | $211,947 | $239,472 | $268,627 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $86,491 | $106,608 | $127,917 | $150,490 | $174,401 | $199,729 | $226,560 | $254,981 | $285,088 | $316,980 |
| - Closing Costs | ($20,034) | ($21,236) | ($22,510) | ($23,861) | ($25,292) | ($26,810) | ($28,419) | ($30,124) | ($31,931) | ($33,847) |
| = Proceeds After Sale | $66,457 | $85,372 | $105,407 | $126,629 | $149,108 | $172,919 | $198,141 | $224,857 | $253,157 | $283,133 |
| + Cumulative Cash Flow | $1,455 | $3,361 | $5,733 | $8,584 | $11,929 | $15,783 | $20,160 | $25,077 | $30,550 | $36,595 |
| - Approximate Cash Invested | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) | ($72,900) |
| = Net Profit | ($4,988) | $15,833 | $38,240 | $62,313 | $88,138 | $115,802 | $145,402 | $177,035 | $210,807 | $246,828 |
| Internal Rate of Return | -6.8% | 10.4% | 15.4% | 17.1% | 17.7% | 17.9% | 17.8% | 17.6% | 17.3% | 17.0% |
| Return on Investment | -6.8% | 21.7% | 52.5% | 85.5% | 120.9% | 158.9% | 199.5% | 242.8% | 289.2% | 338.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.