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 | $24,600 | $25,338 | $26,098 | $26,881 | $27,688 | $28,518 | $29,374 | $30,255 | $31,163 | $32,097 |
| Vacancy Losses | ($1,968) | ($2,027) | ($2,088) | ($2,150) | ($2,215) | ($2,281) | ($2,350) | ($2,420) | ($2,493) | ($2,568) |
| Operating Income | $22,632 | $23,311 | $24,010 | $24,731 | $25,473 | $26,237 | $27,024 | $27,835 | $28,670 | $29,530 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,799) | ($1,853) | ($1,909) | ($1,966) | ($2,025) | ($2,086) | ($2,149) | ($2,213) | ($2,279) | ($2,348) |
| Insurance | ($900) | ($927) | ($954) | ($983) | ($1,013) | ($1,043) | ($1,074) | ($1,107) | ($1,140) | ($1,174) |
| 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 | ($492) | ($507) | ($522) | ($538) | ($554) | ($570) | ($587) | ($605) | ($623) | ($642) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,115) | ($4,239) | ($4,366) | ($4,497) | ($4,632) | ($4,771) | ($4,914) | ($5,061) | ($5,213) | ($5,369) |
| 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 | $18,517 | $19,072 | $19,645 | $20,234 | $20,841 | $21,466 | $22,110 | $22,773 | $23,457 | $24,160 |
| - Mortgage Payments | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) | ($18,413) |
| = Cash Flow | $104 | $660 | $1,232 | $1,821 | $2,428 | $3,054 | $3,698 | $4,361 | $5,044 | $5,748 |
| + Principal Reduction | $2,177 | $2,340 | $2,515 | $2,704 | $2,907 | $3,125 | $3,359 | $3,611 | $3,881 | $4,172 |
| + Appreciation | $17,994 | $19,074 | $20,218 | $21,431 | $22,717 | $24,080 | $25,525 | $27,056 | $28,680 | $30,400 |
| = Gross Equity Income | $20,275 | $22,074 | $23,966 | $25,957 | $28,052 | $30,258 | $32,581 | $35,028 | $37,605 | $40,320 |
| Capitalization Rate | 5.8% | 5.7% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% |
| Cash on Cash Return | 0.1% | 0.8% | 1.5% | 2.2% | 2.9% | 3.7% | 4.4% | 5.2% | 6.1% | 6.9% |
| Return on Equity | 21.3% | 18.9% | 17.2% | 15.9% | 14.8% | 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 | $317,894 | $336,968 | $357,186 | $378,617 | $401,334 | $425,414 | $450,939 | $477,995 | $506,675 | $537,075 |
| - Loan Balance | ($222,748) | ($220,408) | ($217,893) | ($215,189) | ($212,282) | ($209,157) | ($205,798) | ($202,188) | ($198,307) | ($194,134) |
| = Equity | $95,146 | $116,560 | $139,293 | $163,428 | $189,052 | $216,257 | $245,140 | $275,807 | $308,368 | $342,941 |
| 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 | $63,356 | $82,863 | $103,575 | $125,567 | $148,919 | $173,715 | $200,046 | $228,008 | $257,701 | $289,233 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,146 | $116,560 | $139,293 | $163,428 | $189,052 | $216,257 | $245,140 | $275,807 | $308,368 | $342,941 |
| - 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 | $72,893 | $92,972 | $114,290 | $136,925 | $160,959 | $186,478 | $213,575 | $242,348 | $272,901 | $305,346 |
| + Cumulative Cash Flow | $104 | $764 | $1,996 | $3,818 | $6,246 | $9,300 | $12,997 | $17,358 | $22,402 | $28,150 |
| - Initial Cash Invested | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) | ($83,273) |
| = Net Profit | ($10,275) | $10,464 | $33,014 | $57,470 | $83,932 | $112,505 | $143,299 | $176,433 | $212,031 | $250,223 |
| Internal Rate of Return | -12.3% | 6.1% | 11.8% | 14.1% | 15.1% | 15.5% | 15.7% | 15.7% | 15.5% | 15.4% |
| Return on Investment | -12.3% | 12.6% | 39.6% | 69.0% | 100.8% | 135.1% | 172.1% | 211.9% | 254.6% | 300.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
