Property Information
New Construction in Huntsville Metro
Owens Cross Roads, AL 35763
| 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 | ($2,175) | ($2,240) | ($2,308) | ($2,377) | ($2,448) | ($2,522) | ($2,597) | ($2,675) | ($2,755) | ($2,838) |
| Insurance | ($1,224) | ($1,260) | ($1,298) | ($1,337) | ($1,377) | ($1,418) | ($1,461) | ($1,505) | ($1,550) | ($1,596) |
| 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 | ($276) | ($284) | ($293) | ($302) | ($311) | ($320) | ($330) | ($339) | ($350) | ($360) |
| Maintenance | ($492) | ($507) | ($522) | ($538) | ($554) | ($570) | ($587) | ($605) | ($623) | ($642) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,463) | ($5,627) | ($5,795) | ($5,969) | ($6,148) | ($6,333) | ($6,523) | ($6,718) | ($6,920) | ($7,128) |
| 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 | $17,169 | $17,684 | $18,215 | $18,761 | $19,324 | $19,904 | $20,501 | $21,116 | $21,749 | $22,402 |
| - Mortgage Payments | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) | ($15,467) |
| = Cash Flow | $1,702 | $2,217 | $2,748 | $3,294 | $3,857 | $4,437 | $5,034 | $5,649 | $6,282 | $6,935 |
| + Principal Reduction | $2,279 | $2,432 | $2,595 | $2,769 | $2,954 | $3,152 | $3,363 | $3,588 | $3,828 | $4,085 |
| + Appreciation | $16,314 | $17,293 | $18,330 | $19,430 | $20,596 | $21,832 | $23,142 | $24,530 | $26,002 | $27,562 |
| = Gross Equity Income | $20,295 | $21,942 | $23,673 | $25,493 | $27,407 | $29,420 | $31,538 | $33,767 | $36,113 | $38,582 |
| Capitalization Rate | 6.0% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% |
| Cash on Cash Return | 2.3% | 3.0% | 3.8% | 4.5% | 5.3% | 6.1% | 6.9% | 7.8% | 8.6% | 9.5% |
| Return on Equity | 23.4% | 20.6% | 18.6% | 17.1% | 15.8% | 14.9% | 14.1% | 13.4% | 12.8% | 12.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $288,214 | $305,507 | $323,837 | $343,267 | $363,864 | $385,695 | $408,837 | $433,367 | $459,369 | $486,931 |
| - Loan Balance | ($201,646) | ($199,214) | ($196,619) | ($193,851) | ($190,897) | ($187,745) | ($184,382) | ($180,794) | ($176,965) | ($172,880) |
| = Equity | $86,568 | $106,293 | $127,218 | $149,417 | $172,967 | $197,951 | $224,455 | $252,574 | $282,404 | $314,051 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $57,747 | $75,742 | $94,834 | $115,090 | $136,581 | $159,381 | $183,572 | $209,237 | $236,467 | $265,358 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $86,568 | $106,293 | $127,218 | $149,417 | $172,967 | $197,951 | $224,455 | $252,574 | $282,404 | $314,051 |
| - Closing Costs | ($20,175) | ($21,385) | ($22,669) | ($24,029) | ($25,470) | ($26,999) | ($28,619) | ($30,336) | ($32,156) | ($34,085) |
| = Proceeds After Sale | $66,393 | $84,908 | $104,550 | $125,388 | $147,497 | $170,952 | $195,837 | $222,238 | $250,248 | $279,966 |
| + Cumulative Cash Flow | $1,702 | $3,919 | $6,667 | $9,961 | $13,817 | $18,254 | $23,288 | $28,937 | $35,219 | $42,153 |
| - Initial Cash Invested | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) | ($72,733) |
| = Net Profit | ($4,638) | $16,093 | $38,483 | $62,616 | $88,581 | $116,473 | $146,391 | $178,441 | $212,734 | $249,386 |
| Internal Rate of Return | -6.4% | 10.6% | 15.5% | 17.3% | 17.9% | 18.1% | 18.0% | 17.8% | 17.6% | 17.3% |
| Return on Investment | -6.4% | 22.1% | 52.9% | 86.1% | 121.8% | 160.1% | 201.3% | 245.3% | 292.5% | 342.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
