Property Information
New Construction in Birmingham Metro
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 | $19,140 | $19,714 | $20,306 | $20,915 | $21,542 | $22,189 | $22,854 | $23,540 | $24,246 | $24,973 |
| Vacancy Losses | ($1,531) | ($1,577) | ($1,624) | ($1,673) | ($1,723) | ($1,775) | ($1,828) | ($1,883) | ($1,940) | ($1,998) |
| Operating Income | $17,609 | $18,137 | $18,681 | $19,242 | $19,819 | $20,413 | $21,026 | $21,657 | $22,306 | $22,975 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,792) | ($1,845) | ($1,901) | ($1,958) | ($2,016) | ($2,077) | ($2,139) | ($2,203) | ($2,270) | ($2,338) |
| Insurance | ($1,008) | ($1,038) | ($1,069) | ($1,101) | ($1,134) | ($1,168) | ($1,203) | ($1,239) | ($1,277) | ($1,315) |
| 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 | ($383) | ($394) | ($406) | ($418) | ($431) | ($444) | ($457) | ($471) | ($485) | ($499) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,838) | ($4,983) | ($5,133) | ($5,287) | ($5,445) | ($5,609) | ($5,777) | ($5,950) | ($6,129) | ($6,313) |
| 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 | $12,771 | $13,154 | $13,548 | $13,955 | $14,373 | $14,805 | $15,249 | $15,706 | $16,177 | $16,663 |
| - Mortgage Payments | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) | ($11,890) |
| = Cash Flow | $880 | $1,263 | $1,658 | $2,064 | $2,483 | $2,914 | $3,358 | $3,816 | $4,287 | $4,772 |
| + Principal Reduction | $1,752 | $1,870 | $1,995 | $2,128 | $2,271 | $2,423 | $2,585 | $2,758 | $2,943 | $3,140 |
| + Appreciation | $13,437 | $14,243 | $15,098 | $16,004 | $16,964 | $17,982 | $19,061 | $20,204 | $21,417 | $22,702 |
| = Gross Equity Income | $16,069 | $17,376 | $18,751 | $20,196 | $21,718 | $23,319 | $25,004 | $26,779 | $28,647 | $30,614 |
| Capitalization Rate | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% |
| Cash on Cash Return | 1.2% | 1.8% | 2.3% | 2.9% | 3.5% | 4.1% | 4.7% | 5.4% | 6.0% | 6.7% |
| Return on Equity | 19.5% | 17.6% | 16.2% | 15.1% | 14.2% | 13.5% | 12.8% | 12.3% | 11.8% | 11.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $237,387 | $251,630 | $266,728 | $282,732 | $299,696 | $317,677 | $336,738 | $356,942 | $378,359 | $401,060 |
| - Loan Balance | ($155,013) | ($153,143) | ($151,149) | ($149,020) | ($146,749) | ($144,326) | ($141,741) | ($138,983) | ($136,040) | ($132,899) |
| = Equity | $82,374 | $98,487 | $115,579 | $133,711 | $152,946 | $173,351 | $194,997 | $217,959 | $242,319 | $268,161 |
| 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 | $58,635 | $73,324 | $88,907 | $105,438 | $122,977 | $141,583 | $161,323 | $182,265 | $204,483 | $228,055 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $82,374 | $98,487 | $115,579 | $133,711 | $152,946 | $173,351 | $194,997 | $217,959 | $242,319 | $268,161 |
| - Closing Costs | ($16,617) | ($17,614) | ($18,671) | ($19,791) | ($20,979) | ($22,237) | ($23,572) | ($24,986) | ($26,485) | ($28,074) |
| = Proceeds After Sale | $65,757 | $80,873 | $96,909 | $113,920 | $131,968 | $151,114 | $171,425 | $192,974 | $215,834 | $240,087 |
| + Cumulative Cash Flow | $880 | $2,144 | $3,802 | $5,866 | $8,349 | $11,264 | $14,622 | $18,438 | $22,725 | $27,498 |
| - Initial Cash Invested | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) | ($70,992) |
| = Net Profit | ($4,355) | $12,024 | $29,718 | $48,794 | $69,325 | $91,385 | $115,055 | $140,419 | $167,567 | $196,592 |
| Internal Rate of Return | -6.1% | 8.2% | 12.5% | 14.2% | 14.9% | 15.2% | 15.3% | 15.2% | 15.1% | 15.0% |
| Return on Investment | -6.1% | 16.9% | 41.9% | 68.7% | 97.7% | 128.7% | 162.1% | 197.8% | 236.0% | 276.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
