Property Information
New Construction in Huntsville Metro
Athens, AL 35613
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $25,140 | $25,894 | $26,671 | $27,471 | $28,295 | $29,144 | $30,018 | $30,919 | $31,847 | $32,802 |
| Vacancy Losses | ($2,011) | ($2,072) | ($2,134) | ($2,198) | ($2,264) | ($2,332) | ($2,401) | ($2,474) | ($2,548) | ($2,624) |
| Operating Income | $23,129 | $23,823 | $24,537 | $25,273 | $26,032 | $26,813 | $27,617 | $28,446 | $29,299 | $30,178 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,352) | ($2,422) | ($2,495) | ($2,570) | ($2,647) | ($2,726) | ($2,808) | ($2,893) | ($2,979) | ($3,069) |
| Insurance | ($1,323) | ($1,363) | ($1,403) | ($1,446) | ($1,489) | ($1,534) | ($1,580) | ($1,627) | ($1,676) | ($1,726) |
| 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 | ($250) | ($257) | ($265) | ($273) | ($281) | ($290) | ($298) | ($307) | ($317) | ($326) |
| Maintenance | ($503) | ($518) | ($533) | ($549) | ($566) | ($583) | ($600) | ($618) | ($637) | ($656) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,724) | ($5,895) | ($6,072) | ($6,254) | ($6,442) | ($6,635) | ($6,834) | ($7,039) | ($7,250) | ($7,468) |
| 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 | $17,405 | $17,927 | $18,465 | $19,019 | $19,590 | $20,177 | $20,783 | $21,406 | $22,048 | $22,710 |
| - Mortgage Payments | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) | ($15,651) |
| = Cash Flow | $1,754 | $2,276 | $2,814 | $3,368 | $3,938 | $4,526 | $5,132 | $5,755 | $6,397 | $7,059 |
| + Principal Reduction | $2,771 | $2,939 | $3,116 | $3,304 | $3,504 | $3,715 | $3,939 | $4,177 | $4,429 | $4,696 |
| + Appreciation | $17,639 | $18,697 | $19,819 | $21,008 | $22,269 | $23,605 | $25,021 | $26,523 | $28,114 | $29,801 |
| = Gross Equity Income | $22,164 | $23,912 | $25,749 | $27,680 | $29,711 | $31,846 | $34,092 | $36,455 | $38,940 | $41,556 |
| Capitalization Rate | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% |
| Cash on Cash Return | 2.2% | 2.9% | 3.6% | 4.3% | 5.0% | 5.8% | 6.5% | 7.3% | 8.1% | 9.0% |
| Return on Equity | 23.6% | 20.7% | 18.6% | 17.0% | 15.8% | 14.8% | 13.9% | 13.2% | 12.6% | 12.1% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $311,624 | $330,322 | $350,141 | $371,149 | $393,418 | $417,023 | $442,045 | $468,567 | $496,681 | $526,482 |
| - Loan Balance | ($217,717) | ($214,779) | ($211,663) | ($208,359) | ($204,855) | ($201,140) | ($197,201) | ($193,024) | ($188,595) | ($183,899) |
| = Equity | $93,907 | $115,543 | $138,478 | $162,791 | $188,563 | $215,883 | $244,844 | $275,543 | $308,086 | $342,584 |
| Loan-to-Value Ratio | 69.9% | 65.0% | 60.5% | 56.1% | 52.1% | 48.2% | 44.6% | 41.2% | 38.0% | 34.9% |
| Potential Cash-Out Refi | $62,744 | $82,511 | $103,464 | $125,676 | $149,221 | $174,181 | $200,639 | $228,687 | $258,418 | $289,936 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $93,907 | $115,543 | $138,478 | $162,791 | $188,563 | $215,883 | $244,844 | $275,543 | $308,086 | $342,584 |
| - Closing Costs | ($21,814) | ($23,123) | ($24,510) | ($25,980) | ($27,539) | ($29,192) | ($30,943) | ($32,800) | ($34,768) | ($36,854) |
| = Proceeds After Sale | $72,093 | $92,420 | $113,968 | $136,810 | $161,024 | $186,691 | $213,901 | $242,744 | $273,319 | $305,730 |
| + Cumulative Cash Flow | $1,754 | $4,030 | $6,844 | $10,212 | $14,151 | $18,677 | $23,808 | $29,563 | $35,960 | $43,019 |
| - Initial Cash Invested | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) | ($78,641) |
| = Net Profit | ($4,794) | $17,809 | $42,171 | $68,381 | $96,533 | $126,727 | $159,068 | $193,666 | $230,638 | $270,108 |
| Internal Rate of Return | -6.1% | 10.9% | 15.7% | 17.4% | 18.0% | 18.1% | 18.0% | 17.8% | 17.5% | 17.3% |
| Return on Investment | -6.1% | 22.6% | 53.6% | 87.0% | 122.8% | 161.1% | 202.3% | 246.3% | 293.3% | 343.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
