Property Information
New Construction in Birmingham Metro
McCalla, AL 35022
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $21,900 | $22,557 | $23,234 | $23,931 | $24,649 | $25,388 | $26,150 | $26,934 | $27,742 | $28,575 |
| Vacancy Losses | ($1,752) | ($1,805) | ($1,859) | ($1,914) | ($1,972) | ($2,031) | ($2,092) | ($2,155) | ($2,219) | ($2,286) |
| Operating Income | $20,148 | $20,752 | $21,375 | $22,016 | $22,677 | $23,357 | $24,058 | $24,779 | $25,523 | $26,289 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,379) | ($2,451) | ($2,524) | ($2,600) | ($2,678) | ($2,758) | ($2,841) | ($2,926) | ($3,014) | ($3,104) |
| Insurance | ($1,338) | ($1,378) | ($1,420) | ($1,462) | ($1,506) | ($1,551) | ($1,598) | ($1,646) | ($1,695) | ($1,746) |
| Management Fees | ($1,296) | ($1,335) | ($1,375) | ($1,416) | ($1,459) | ($1,502) | ($1,547) | ($1,594) | ($1,642) | ($1,691) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Maintenance | ($438) | ($451) | ($465) | ($479) | ($493) | ($508) | ($523) | ($539) | ($555) | ($571) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,956) | ($6,134) | ($6,318) | ($6,508) | ($6,703) | ($6,904) | ($7,111) | ($7,325) | ($7,544) | ($7,771) |
| 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 | $14,193 | $14,618 | $15,057 | $15,509 | $15,974 | $16,453 | $16,947 | $17,455 | $17,979 | $18,518 |
| - Mortgage Payments | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) | ($15,790) |
| = Cash Flow | ($1,598) | ($1,172) | ($733) | ($282) | $184 | $663 | $1,157 | $1,665 | $2,189 | $2,728 |
| + Principal Reduction | $2,327 | $2,483 | $2,649 | $2,826 | $3,016 | $3,218 | $3,433 | $3,663 | $3,908 | $4,170 |
| + Appreciation | $17,844 | $18,915 | $20,050 | $21,252 | $22,528 | $23,879 | $25,312 | $26,831 | $28,441 | $30,147 |
| = Gross Equity Income | $18,573 | $20,226 | $21,965 | $23,797 | $25,727 | $27,760 | $29,902 | $32,159 | $34,538 | $37,045 |
| Capitalization Rate | 4.5% | 4.4% | 4.3% | 4.1% | 4.0% | 3.9% | 3.8% | 3.7% | 3.6% | 3.5% |
| Cash on Cash Return | -1.7% | -1.2% | -0.8% | -0.3% | 0.2% | 0.7% | 1.2% | 1.8% | 2.3% | 2.9% |
| Return on Equity | 17.0% | 15.5% | 14.3% | 13.4% | 12.7% | 12.1% | 11.5% | 11.1% | 10.7% | 10.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $315,244 | $334,159 | $354,208 | $375,461 | $397,988 | $421,868 | $447,180 | $474,010 | $502,451 | $532,598 |
| - Loan Balance | ($205,853) | ($203,370) | ($200,721) | ($197,895) | ($194,879) | ($191,662) | ($188,228) | ($184,565) | ($180,657) | ($176,487) |
| = Equity | $109,391 | $130,788 | $153,487 | $177,566 | $203,109 | $230,206 | $258,951 | $289,445 | $321,794 | $356,111 |
| Loan-to-Value Ratio | 65.3% | 60.9% | 56.7% | 52.7% | 49.0% | 45.4% | 42.1% | 38.9% | 36.0% | 33.1% |
| Potential Cash-Out Refi | $77,866 | $97,372 | $118,066 | $140,020 | $163,310 | $188,019 | $214,233 | $242,044 | $271,549 | $302,851 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $109,391 | $130,788 | $153,487 | $177,566 | $203,109 | $230,206 | $258,951 | $289,445 | $321,794 | $356,111 |
| - Closing Costs | ($22,067) | ($23,391) | ($24,795) | ($26,282) | ($27,859) | ($29,531) | ($31,303) | ($33,181) | ($35,172) | ($37,282) |
| = Proceeds After Sale | $87,324 | $107,397 | $128,692 | $151,283 | $175,250 | $200,675 | $227,649 | $256,264 | $286,622 | $318,829 |
| + Cumulative Cash Flow | ($1,598) | ($2,769) | ($3,503) | ($3,784) | ($3,600) | ($2,938) | ($1,781) | ($116) | $2,072 | $4,800 |
| - Initial Cash Invested | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) | ($94,276) |
| = Net Profit | ($8,550) | $10,352 | $30,914 | $53,223 | $77,374 | $103,462 | $131,592 | $161,872 | $194,419 | $229,354 |
| Internal Rate of Return | -9.1% | 5.3% | 9.8% | 11.6% | 12.5% | 12.9% | 13.1% | 13.1% | 13.1% | 13.0% |
| Return on Investment | -9.1% | 11.0% | 32.8% | 56.5% | 82.1% | 109.7% | 139.6% | 171.7% | 206.2% | 243.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
