Property Information
New Construction Greater Birmingham Area
Pell City, AL 35128
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $24,000 | $24,720 | $25,462 | $26,225 | $27,012 | $27,823 | $28,657 | $29,517 | $30,402 | $31,315 |
| Vacancy Losses | ($1,920) | ($1,978) | ($2,037) | ($2,098) | ($2,161) | ($2,226) | ($2,293) | ($2,361) | ($2,432) | ($2,505) |
| Operating Income | $22,080 | $22,742 | $23,425 | $24,127 | $24,851 | $25,597 | $26,365 | $27,156 | $27,970 | $28,809 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,745) | ($1,798) | ($1,852) | ($1,907) | ($1,964) | ($2,023) | ($2,084) | ($2,147) | ($2,211) | ($2,277) |
| Insurance | ($873) | ($899) | ($926) | ($954) | ($982) | ($1,012) | ($1,042) | ($1,073) | ($1,106) | ($1,139) |
| Management Fees | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($204) | ($210) | ($216) | ($223) | ($230) | ($236) | ($244) | ($251) | ($258) | ($266) |
| Maintenance | ($480) | ($494) | ($509) | ($525) | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,022) | ($4,143) | ($4,267) | ($4,395) | ($4,527) | ($4,663) | ($4,803) | ($4,947) | ($5,095) | ($5,248) |
| 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 | $18,058 | $18,600 | $19,158 | $19,732 | $20,324 | $20,934 | $21,562 | $22,209 | $22,875 | $23,561 |
| - Mortgage Payments | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) | ($17,860) |
| = Cash Flow | $198 | $740 | $1,298 | $1,872 | $2,464 | $3,074 | $3,702 | $4,349 | $5,015 | $5,701 |
| + Principal Reduction | $2,112 | $2,270 | $2,440 | $2,623 | $2,820 | $3,031 | $3,258 | $3,502 | $3,765 | $4,047 |
| + Appreciation | $17,454 | $18,501 | $19,611 | $20,788 | $22,035 | $23,357 | $24,759 | $26,244 | $27,819 | $29,488 |
| = Gross Equity Income | $19,763 | $21,511 | $23,349 | $25,283 | $27,319 | $29,462 | $31,719 | $34,096 | $36,599 | $39,237 |
| Capitalization Rate | 5.9% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% |
| Cash on Cash Return | 0.2% | 0.9% | 1.6% | 2.3% | 3.0% | 3.8% | 4.6% | 5.4% | 6.2% | 7.1% |
| Return on Equity | 21.4% | 19.0% | 17.3% | 15.9% | 14.9% | 14.0% | 13.3% | 12.7% | 12.2% | 11.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $308,354 | $326,855 | $346,467 | $367,255 | $389,290 | $412,647 | $437,406 | $463,650 | $491,469 | $520,958 |
| - Loan Balance | ($216,063) | ($213,793) | ($211,353) | ($208,730) | ($205,911) | ($202,880) | ($199,622) | ($196,119) | ($192,354) | ($188,307) |
| = Equity | $92,291 | $113,062 | $135,113 | $158,524 | $183,379 | $209,767 | $237,784 | $267,531 | $299,115 | $332,650 |
| Loan-to-Value Ratio | 70.1% | 65.4% | 61.0% | 56.8% | 52.9% | 49.2% | 45.6% | 42.3% | 39.1% | 36.1% |
| Potential Cash-Out Refi | $61,455 | $80,376 | $100,467 | $121,799 | $144,450 | $168,503 | $194,044 | $221,166 | $249,968 | $280,555 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $92,291 | $113,062 | $135,113 | $158,524 | $183,379 | $209,767 | $237,784 | $267,531 | $299,115 | $332,650 |
| - Closing Costs | ($21,585) | ($22,880) | ($24,253) | ($25,708) | ($27,250) | ($28,885) | ($30,618) | ($32,456) | ($34,403) | ($36,467) |
| = Proceeds After Sale | $70,706 | $90,182 | $110,861 | $132,816 | $156,129 | $180,882 | $207,166 | $235,076 | $264,712 | $296,183 |
| + Cumulative Cash Flow | $198 | $937 | $2,235 | $4,107 | $6,571 | $9,645 | $13,347 | $17,696 | $22,711 | $28,413 |
| - Initial Cash Invested | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) | ($80,798) |
| = Net Profit | ($9,894) | $10,322 | $32,298 | $56,126 | $81,903 | $109,730 | $139,716 | $171,974 | $206,626 | $243,799 |
| Internal Rate of Return | -12.2% | 6.2% | 11.9% | 14.2% | 15.2% | 15.6% | 15.8% | 15.7% | 15.6% | 15.5% |
| Return on Investment | -12.2% | 12.8% | 40.0% | 69.5% | 101.4% | 135.8% | 172.9% | 212.8% | 255.7% | 301.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
