Property Information
New Construction in Birmingham Metro
Mount Olive, AL 35117
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $20,700 | $21,321 | $21,961 | $22,619 | $23,298 | $23,997 | $24,717 | $25,458 | $26,222 | $27,009 |
| Vacancy Losses | ($1,656) | ($1,706) | ($1,757) | ($1,810) | ($1,864) | ($1,920) | ($1,977) | ($2,037) | ($2,098) | ($2,161) |
| Operating Income | $19,044 | $19,615 | $20,204 | $20,810 | $21,434 | $22,077 | $22,740 | $23,422 | $24,124 | $24,848 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,135) | ($2,199) | ($2,265) | ($2,333) | ($2,403) | ($2,475) | ($2,550) | ($2,626) | ($2,705) | ($2,786) |
| Insurance | ($1,201) | ($1,237) | ($1,274) | ($1,312) | ($1,352) | ($1,392) | ($1,434) | ($1,477) | ($1,521) | ($1,567) |
| 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 | ($360) | ($371) | ($382) | ($393) | ($405) | ($417) | ($430) | ($443) | ($456) | ($470) |
| Maintenance | ($414) | ($426) | ($439) | ($452) | ($466) | ($480) | ($494) | ($509) | ($524) | ($540) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,406) | ($5,568) | ($5,735) | ($5,908) | ($6,085) | ($6,267) | ($6,455) | ($6,649) | ($6,848) | ($7,054) |
| 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 | $13,638 | $14,047 | $14,468 | $14,902 | $15,349 | $15,810 | $16,284 | $16,773 | $17,276 | $17,794 |
| - Mortgage Payments | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) | ($14,171) |
| = Cash Flow | ($533) | ($124) | $298 | $732 | $1,179 | $1,639 | $2,114 | $2,602 | $3,105 | $3,623 |
| + Principal Reduction | $2,088 | $2,228 | $2,377 | $2,536 | $2,706 | $2,888 | $3,081 | $3,287 | $3,507 | $3,742 |
| + Appreciation | $16,014 | $16,975 | $17,993 | $19,073 | $20,217 | $21,430 | $22,716 | $24,079 | $25,524 | $27,055 |
| = Gross Equity Income | $17,569 | $19,079 | $20,668 | $22,341 | $24,102 | $25,957 | $27,911 | $29,969 | $32,137 | $34,421 |
| Capitalization Rate | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 3.9% | 3.8% | 3.7% |
| Cash on Cash Return | -0.6% | -0.1% | 0.4% | 0.9% | 1.4% | 1.9% | 2.5% | 3.1% | 3.7% | 4.3% |
| Return on Equity | 17.9% | 16.3% | 15.0% | 14.0% | 13.2% | 12.6% | 12.0% | 11.5% | 11.1% | 10.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $282,914 | $299,889 | $317,882 | $336,955 | $357,172 | $378,603 | $401,319 | $425,398 | $450,922 | $477,977 |
| - Loan Balance | ($184,742) | ($182,514) | ($180,136) | ($177,600) | ($174,894) | ($172,006) | ($168,925) | ($165,638) | ($162,130) | ($158,388) |
| = Equity | $98,172 | $117,375 | $137,746 | $159,355 | $182,279 | $206,597 | $232,394 | $259,760 | $288,792 | $319,590 |
| 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 | $69,881 | $87,386 | $105,958 | $125,660 | $146,562 | $168,737 | $192,262 | $217,221 | $243,700 | $271,792 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $98,172 | $117,375 | $137,746 | $159,355 | $182,279 | $206,597 | $232,394 | $259,760 | $288,792 | $319,590 |
| - Closing Costs | ($19,804) | ($20,992) | ($22,252) | ($23,587) | ($25,002) | ($26,502) | ($28,092) | ($29,778) | ($31,565) | ($33,458) |
| = Proceeds After Sale | $78,368 | $96,383 | $115,494 | $135,768 | $157,277 | $180,095 | $204,302 | $229,983 | $257,227 | $286,131 |
| + Cumulative Cash Flow | ($533) | ($657) | ($359) | $373 | $1,551 | $3,190 | $5,304 | $7,906 | $11,011 | $14,635 |
| - Initial Cash Invested | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) | ($84,607) |
| = Net Profit | ($6,772) | $11,119 | $30,528 | $51,534 | $74,221 | $98,678 | $124,998 | $153,281 | $183,631 | $216,159 |
| Internal Rate of Return | -8.0% | 6.3% | 10.8% | 12.6% | 13.4% | 13.7% | 13.9% | 13.9% | 13.8% | 13.7% |
| Return on Investment | -8.0% | 13.1% | 36.1% | 60.9% | 87.7% | 116.6% | 147.7% | 181.2% | 217.0% | 255.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
