Property Information
New Construction in Huntsville Metro
Madison, AL 35756
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $29,940 | $30,838 | $31,763 | $32,716 | $33,698 | $34,709 | $35,750 | $36,822 | $37,927 | $39,065 |
| Vacancy Losses | ($2,395) | ($2,467) | ($2,541) | ($2,617) | ($2,696) | ($2,777) | ($2,860) | ($2,946) | ($3,034) | ($3,125) |
| Operating Income | $27,545 | $28,371 | $29,222 | $30,099 | $31,002 | $31,932 | $32,890 | $33,877 | $34,893 | $35,940 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,701) | ($2,782) | ($2,865) | ($2,951) | ($3,039) | ($3,131) | ($3,225) | ($3,321) | ($3,421) | ($3,524) |
| Insurance | ($1,519) | ($1,565) | ($1,612) | ($1,660) | ($1,710) | ($1,761) | ($1,814) | ($1,868) | ($1,924) | ($1,982) |
| 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 | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Maintenance | ($599) | ($617) | ($635) | ($654) | ($674) | ($694) | ($715) | ($736) | ($759) | ($781) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,618) | ($6,817) | ($7,021) | ($7,232) | ($7,449) | ($7,672) | ($7,903) | ($8,140) | ($8,384) | ($8,635) |
| 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 | $20,926 | $21,554 | $22,201 | $22,867 | $23,553 | $24,259 | $24,987 | $25,737 | $26,509 | $27,304 |
| - Mortgage Payments | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) |
| = Cash Flow | $3,004 | $3,632 | $4,278 | $4,944 | $5,630 | $6,337 | $7,065 | $7,814 | $8,586 | $9,382 |
| + Principal Reduction | $2,641 | $2,818 | $3,007 | $3,208 | $3,423 | $3,652 | $3,897 | $4,158 | $4,436 | $4,733 |
| + Appreciation | $20,254 | $21,469 | $22,757 | $24,123 | $25,570 | $27,104 | $28,731 | $30,454 | $32,282 | $34,219 |
| = Gross Equity Income | $25,899 | $27,919 | $30,042 | $32,275 | $34,623 | $37,093 | $39,692 | $42,426 | $45,304 | $48,334 |
| 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% | 3.4% | 4.0% | 4.6% | 5.3% | 5.9% | 6.6% | 7.3% | 8.0% | 8.8% |
| Return on Equity | 20.9% | 18.8% | 17.2% | 16.0% | 15.0% | 14.2% | 13.5% | 12.9% | 12.4% | 12.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $357,819 | $379,288 | $402,045 | $426,168 | $451,738 | $478,842 | $507,573 | $538,027 | $570,309 | $604,528 |
| - Loan Balance | ($233,654) | ($230,836) | ($227,830) | ($224,621) | ($221,198) | ($217,546) | ($213,649) | ($209,492) | ($205,055) | ($200,322) |
| = Equity | $124,165 | $148,452 | $174,216 | $201,547 | $230,540 | $261,296 | $293,924 | $328,536 | $365,254 | $404,206 |
| 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 | $88,383 | $110,523 | $134,011 | $158,930 | $185,366 | $213,412 | $243,166 | $274,733 | $308,223 | $343,753 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $124,165 | $148,452 | $174,216 | $201,547 | $230,540 | $261,296 | $293,924 | $328,536 | $365,254 | $404,206 |
| - Closing Costs | ($25,047) | ($26,550) | ($28,143) | ($29,832) | ($31,622) | ($33,519) | ($35,530) | ($37,662) | ($39,922) | ($42,317) |
| = Proceeds After Sale | $99,117 | $121,902 | $146,073 | $171,715 | $198,918 | $227,777 | $258,394 | $290,874 | $325,332 | $361,889 |
| + Cumulative Cash Flow | $3,004 | $6,635 | $10,914 | $15,858 | $21,488 | $27,825 | $34,890 | $42,704 | $51,290 | $60,672 |
| - Initial Cash Invested | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) |
| = Net Profit | ($4,887) | $21,529 | $49,978 | $80,565 | $113,398 | $148,594 | $186,275 | $226,570 | $269,614 | $315,553 |
| Internal Rate of Return | -4.6% | 9.7% | 14.0% | 15.6% | 16.3% | 16.5% | 16.5% | 16.4% | 16.2% | 16.0% |
| Return on Investment | -4.6% | 20.1% | 46.7% | 75.3% | 106.0% | 138.9% | 174.1% | 211.7% | 252.0% | 294.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
