Property Information
Short Term OR Mid-Term Rental in Orange Beach
Orange Beach, AL 36561
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $41,940 | $43,198 | $44,494 | $45,829 | $47,204 | $48,620 | $50,079 | $51,581 | $53,128 | $54,722 |
| Vacancy Losses | ($1,258) | ($1,296) | ($1,335) | ($1,375) | ($1,416) | ($1,459) | ($1,502) | ($1,547) | ($1,594) | ($1,642) |
| Operating Income | $40,682 | $41,902 | $43,159 | $44,454 | $45,788 | $47,161 | $48,576 | $50,033 | $51,534 | $53,081 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($3,884) | ($4,001) | ($4,121) | ($4,244) | ($4,372) | ($4,503) | ($4,638) | ($4,777) | ($4,921) | ($5,068) |
| Insurance | ($3,884) | ($4,001) | ($4,121) | ($4,244) | ($4,372) | ($4,503) | ($4,638) | ($4,777) | ($4,921) | ($5,068) |
| Management Fees | ($4,068) | ($4,190) | ($4,316) | ($4,445) | ($4,579) | ($4,716) | ($4,858) | ($5,003) | ($5,153) | ($5,308) |
| Leasing/Advertising Fees | ($3,000) | ($3,090) | ($3,183) | ($3,278) | ($3,377) | ($3,478) | ($3,582) | ($3,690) | ($3,800) | ($3,914) |
| Association Fees | ($2,400) | ($2,472) | ($2,546) | ($2,623) | ($2,701) | ($2,782) | ($2,866) | ($2,952) | ($3,040) | ($3,131) |
| Maintenance | ($1,258) | ($1,296) | ($1,335) | ($1,375) | ($1,416) | ($1,459) | ($1,502) | ($1,547) | ($1,594) | ($1,642) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($18,495) | ($19,050) | ($19,621) | ($20,210) | ($20,816) | ($21,441) | ($22,084) | ($22,746) | ($23,429) | ($24,132) |
| 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 | $22,187 | $22,852 | $23,538 | $24,244 | $24,971 | $25,721 | $26,492 | $27,287 | $28,106 | $28,949 |
| - Mortgage Payments | ($28,749) | ($16,538) | ($16,538) | ($16,538) | ($16,538) | ($16,538) | ($16,538) | ($16,538) | ($16,538) | ($16,538) |
| = Cash Flow | ($6,562) | $6,314 | $7,000 | $7,706 | $8,433 | $9,182 | $9,954 | $10,749 | $11,567 | $12,411 |
| + Principal Reduction | $5,479 | $12,488 | $12,614 | $12,741 | $12,869 | $12,998 | $13,128 | $13,260 | $13,393 | $13,528 |
| + Appreciation | $44,392 | $47,943 | $51,779 | $55,921 | $60,395 | $65,226 | $70,445 | $76,080 | $82,166 | $88,740 |
| = Gross Equity Income | $43,309 | $66,746 | $71,392 | $76,368 | $81,697 | $87,407 | $93,527 | $100,089 | $107,127 | $114,678 |
| Capitalization Rate | 3.7% | 3.5% | 3.4% | 3.2% | 3.1% | 2.9% | 2.8% | 2.7% | 2.5% | 2.4% |
| Cash on Cash Return | -4.1% | 4.0% | 4.4% | 4.8% | 5.3% | 5.8% | 6.2% | 6.7% | 7.3% | 7.8% |
| Return on Equity | 23.0% | 26.8% | 22.8% | 20.0% | 17.9% | 16.4% | 15.2% | 14.2% | 13.4% | 12.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $599,292 | $647,235 | $699,014 | $754,935 | $815,330 | $880,557 | $951,001 | $1,027,081 | $1,109,248 | $1,197,987 |
| - Loan Balance | ($410,696) | ($398,208) | ($385,594) | ($372,854) | ($359,985) | ($346,987) | ($333,859) | ($320,599) | ($307,205) | ($293,677) |
| = Equity | $188,596 | $249,028 | $313,420 | $382,082 | $455,345 | $533,569 | $617,142 | $706,483 | $802,042 | $904,310 |
| Loan-to-Value Ratio | 68.5% | 61.5% | 55.2% | 49.4% | 44.2% | 39.4% | 35.1% | 31.2% | 27.7% | 24.5% |
| Potential Cash-Out Refi | $128,667 | $184,304 | $243,519 | $306,588 | $373,812 | $445,514 | $522,042 | $603,774 | $691,118 | $784,512 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $188,596 | $249,028 | $313,420 | $382,082 | $455,345 | $533,569 | $617,142 | $706,483 | $802,042 | $904,310 |
| - Closing Costs | ($41,950) | ($45,306) | ($48,931) | ($52,845) | ($57,073) | ($61,639) | ($66,570) | ($71,896) | ($77,647) | ($83,859) |
| = Proceeds After Sale | $146,645 | $203,721 | $264,489 | $329,236 | $398,272 | $471,930 | $550,572 | $634,587 | $724,395 | $820,451 |
| + Cumulative Cash Flow | ($6,562) | ($248) | $6,752 | $14,458 | $22,891 | $32,074 | $42,028 | $52,777 | $64,344 | $76,755 |
| - Initial Cash Invested | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) | ($159,534) |
| = Net Profit | ($19,450) | $43,940 | $111,707 | $184,161 | $261,630 | $344,470 | $433,066 | $527,830 | $629,205 | $737,672 |
| Internal Rate of Return | -12.2% | 12.7% | 19.1% | 21.1% | 21.6% | 21.4% | 21.1% | 20.6% | 20.1% | 19.7% |
| Return on Investment | -12.2% | 27.5% | 70.0% | 115.4% | 164.0% | 215.9% | 271.5% | 330.9% | 394.4% | 462.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
