Property Information
New Construction
Odenville, AL 35120
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $22,140 | $22,804 | $23,488 | $24,193 | $24,919 | $25,666 | $26,436 | $27,229 | $28,046 | $28,888 |
| Vacancy Losses | ($1,771) | ($1,824) | ($1,879) | ($1,935) | ($1,994) | ($2,053) | ($2,115) | ($2,178) | ($2,244) | ($2,311) |
| Operating Income | $20,369 | $20,980 | $21,609 | $22,258 | $22,925 | $23,613 | $24,321 | $25,051 | $25,803 | $26,577 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,855) | ($1,911) | ($1,968) | ($2,027) | ($2,088) | ($2,150) | ($2,215) | ($2,281) | ($2,350) | ($2,420) |
| Insurance | ($1,060) | ($1,092) | ($1,125) | ($1,158) | ($1,193) | ($1,229) | ($1,266) | ($1,304) | ($1,343) | ($1,383) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($360) | ($371) | ($382) | ($393) | ($405) | ($417) | ($430) | ($443) | ($456) | ($470) |
| Maintenance | ($664) | ($684) | ($705) | ($726) | ($748) | ($770) | ($793) | ($817) | ($841) | ($867) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,939) | ($4,057) | ($4,179) | ($4,304) | ($4,434) | ($4,567) | ($4,704) | ($4,845) | ($4,990) | ($5,140) |
| 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 | $16,430 | $16,922 | $17,430 | $17,953 | $18,492 | $19,046 | $19,618 | $20,206 | $20,813 | $21,437 |
| - Mortgage Payments | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) | ($14,284) |
| = Cash Flow | $2,146 | $2,639 | $3,146 | $3,669 | $4,208 | $4,762 | $5,334 | $5,922 | $6,529 | $7,153 |
| + Principal Reduction | $2,445 | $2,596 | $2,756 | $2,925 | $3,105 | $3,297 | $3,500 | $3,715 | $3,944 | $4,187 |
| + Appreciation | $15,900 | $16,854 | $17,865 | $18,937 | $20,073 | $21,278 | $22,554 | $23,908 | $25,342 | $26,863 |
| = Gross Equity Income | $20,491 | $22,088 | $23,767 | $25,532 | $27,387 | $29,337 | $31,388 | $33,545 | $35,815 | $38,202 |
| Capitalization Rate | 5.8% | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.6% | 4.5% |
| Cash on Cash Return | 2.8% | 3.5% | 4.2% | 4.9% | 5.6% | 6.3% | 7.1% | 7.8% | 8.6% | 9.5% |
| Return on Equity | 24.2% | 21.2% | 19.1% | 17.4% | 16.1% | 15.1% | 14.2% | 13.5% | 12.9% | 12.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $280,900 | $297,754 | $315,619 | $334,556 | $354,630 | $375,908 | $398,462 | $422,370 | $447,712 | $474,575 |
| - Loan Balance | ($196,305) | ($193,709) | ($190,953) | ($188,028) | ($184,923) | ($181,626) | ($178,126) | ($174,411) | ($170,467) | ($166,281) |
| = Equity | $84,595 | $104,045 | $124,666 | $146,528 | $169,707 | $194,282 | $220,336 | $247,958 | $277,245 | $308,294 |
| Loan-to-Value Ratio | 69.9% | 65.1% | 60.5% | 56.2% | 52.1% | 48.3% | 44.7% | 41.3% | 38.1% | 35.0% |
| Potential Cash-Out Refi | $56,505 | $74,270 | $93,104 | $113,073 | $134,244 | $156,691 | $180,489 | $205,722 | $232,473 | $260,836 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $84,595 | $104,045 | $124,666 | $146,528 | $169,707 | $194,282 | $220,336 | $247,958 | $277,245 | $308,294 |
| - Closing Costs | ($19,663) | ($20,843) | ($22,093) | ($23,419) | ($24,824) | ($26,314) | ($27,892) | ($29,566) | ($31,340) | ($33,220) |
| = Proceeds After Sale | $64,932 | $83,202 | $102,573 | $123,109 | $144,883 | $167,968 | $192,443 | $218,393 | $245,905 | $275,074 |
| + Cumulative Cash Flow | $2,146 | $4,784 | $7,930 | $11,599 | $15,807 | $20,570 | $25,903 | $31,826 | $38,354 | $45,507 |
| - Initial Cash Invested | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) | ($75,525) |
| = Net Profit | ($8,447) | $12,461 | $34,978 | $59,184 | $85,165 | $113,013 | $142,822 | $174,693 | $208,734 | $245,056 |
| Internal Rate of Return | -11.2% | 8.0% | 13.9% | 16.1% | 17.1% | 17.4% | 17.4% | 17.3% | 17.2% | 16.9% |
| Return on Investment | -11.2% | 16.5% | 46.3% | 78.4% | 112.8% | 149.6% | 189.1% | 231.3% | 276.4% | 324.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
