Property Information
SOLD
PRE-LEASED in Tuscaloosa + 2 Years Free Property Management
Tuscaloosa, AL 35405
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $22,740 | $23,422 | $24,125 | $24,849 | $25,594 | $26,362 | $27,153 | $27,967 | $28,806 | $29,671 |
| Vacancy Losses | ($1,137) | ($1,171) | ($1,206) | ($1,242) | ($1,280) | ($1,318) | ($1,358) | ($1,398) | ($1,440) | ($1,484) |
| Operating Income | $21,603 | $22,251 | $22,919 | $23,606 | $24,314 | $25,044 | $25,795 | $26,569 | $27,366 | $28,187 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,039) | ($2,100) | ($2,164) | ($2,228) | ($2,295) | ($2,364) | ($2,435) | ($2,508) | ($2,583) | ($2,661) |
| Insurance | ($900) | ($927) | ($954) | ($983) | ($1,013) | ($1,043) | ($1,074) | ($1,107) | ($1,140) | ($1,174) |
| 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 | ($252) | ($260) | ($267) | ($275) | ($284) | ($292) | ($301) | ($310) | ($319) | ($329) |
| Maintenance | ($455) | ($468) | ($482) | ($497) | ($512) | ($527) | ($543) | ($559) | ($576) | ($593) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,646) | ($3,755) | ($3,868) | ($3,984) | ($4,103) | ($4,227) | ($4,353) | ($4,484) | ($4,618) | ($4,757) |
| 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 | $17,957 | $18,496 | $19,051 | $19,622 | $20,211 | $20,817 | $21,442 | $22,085 | $22,748 | $23,430 |
| - Mortgage Payments | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) | ($16,165) |
| = Cash Flow | $1,792 | $2,331 | $2,886 | $3,457 | $4,046 | $4,652 | $5,277 | $5,920 | $6,583 | $7,265 |
| + Principal Reduction | $2,767 | $2,938 | $3,118 | $3,310 | $3,514 | $3,731 | $3,960 | $4,204 | $4,463 | $4,738 |
| + Appreciation | $17,994 | $19,074 | $20,218 | $21,431 | $22,717 | $24,080 | $25,525 | $27,056 | $28,680 | $30,400 |
| = Gross Equity Income | $22,553 | $24,342 | $26,222 | $28,199 | $30,277 | $32,463 | $34,762 | $37,181 | $39,725 | $42,403 |
| Capitalization Rate | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% |
| Cash on Cash Return | 2.0% | 2.6% | 3.3% | 3.9% | 4.6% | 5.3% | 6.0% | 6.7% | 7.4% | 8.2% |
| Return on Equity | 23.6% | 20.7% | 18.6% | 17.0% | 15.8% | 14.8% | 13.9% | 13.2% | 12.7% | 12.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $317,894 | $336,968 | $357,186 | $378,617 | $401,334 | $425,414 | $450,939 | $477,995 | $506,675 | $537,075 |
| - Loan Balance | ($222,158) | ($219,220) | ($216,102) | ($212,791) | ($209,277) | ($205,546) | ($201,586) | ($197,381) | ($192,918) | ($188,180) |
| = Equity | $95,736 | $117,747 | $141,084 | $165,826 | $192,057 | $219,868 | $249,353 | $280,614 | $313,756 | $348,895 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.1% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $63,947 | $84,051 | $105,365 | $127,964 | $151,924 | $177,326 | $204,259 | $232,814 | $263,089 | $295,187 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,736 | $117,747 | $141,084 | $165,826 | $192,057 | $219,868 | $249,353 | $280,614 | $313,756 | $348,895 |
| - Closing Costs | ($22,253) | ($23,588) | ($25,003) | ($26,503) | ($28,093) | ($29,779) | ($31,566) | ($33,460) | ($35,467) | ($37,595) |
| = Proceeds After Sale | $73,484 | $94,160 | $116,081 | $139,322 | $163,964 | $190,089 | $217,787 | $247,154 | $278,289 | $311,300 |
| + Cumulative Cash Flow | $1,792 | $4,123 | $7,009 | $10,466 | $14,512 | $19,164 | $24,441 | $30,361 | $36,943 | $44,208 |
| - Initial Cash Invested | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) | ($88,471) |
| = Net Profit | ($13,195) | $9,812 | $34,619 | $61,318 | $90,005 | $120,782 | $153,757 | $189,044 | $226,762 | $267,037 |
| Internal Rate of Return | -14.9% | 5.5% | 11.9% | 14.5% | 15.6% | 16.1% | 16.3% | 16.3% | 16.2% | 16.0% |
| Return on Investment | -14.9% | 11.1% | 39.1% | 69.3% | 101.7% | 136.5% | 173.8% | 213.7% | 256.3% | 301.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
