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 | $19,500 | $20,085 | $20,688 | $21,308 | $21,947 | $22,606 | $23,284 | $23,983 | $24,702 | $25,443 |
| Vacancy Losses | ($1,560) | ($1,607) | ($1,655) | ($1,705) | ($1,756) | ($1,808) | ($1,863) | ($1,919) | ($1,976) | ($2,035) |
| Operating Income | $17,940 | $18,478 | $19,033 | $19,604 | $20,192 | $20,797 | $21,421 | $22,064 | $22,726 | $23,408 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,807) | ($1,861) | ($1,917) | ($1,975) | ($2,034) | ($2,095) | ($2,158) | ($2,222) | ($2,289) | ($2,358) |
| Insurance | ($1,016) | ($1,047) | ($1,078) | ($1,111) | ($1,144) | ($1,178) | ($1,214) | ($1,250) | ($1,288) | ($1,326) |
| 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 | ($390) | ($402) | ($414) | ($426) | ($439) | ($452) | ($466) | ($480) | ($494) | ($509) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,869) | ($5,015) | ($5,166) | ($5,321) | ($5,481) | ($5,645) | ($5,814) | ($5,989) | ($6,168) | ($6,353) |
| 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 | $13,071 | $13,463 | $13,867 | $14,283 | $14,711 | $15,152 | $15,607 | $16,075 | $16,557 | $17,054 |
| - Mortgage Payments | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) | ($11,992) |
| = Cash Flow | $1,078 | $1,470 | $1,874 | $2,290 | $2,719 | $3,160 | $3,615 | $4,083 | $4,565 | $5,062 |
| + Principal Reduction | $1,767 | $1,886 | $2,012 | $2,147 | $2,290 | $2,444 | $2,607 | $2,782 | $2,968 | $3,167 |
| + Appreciation | $13,552 | $14,365 | $15,227 | $16,141 | $17,109 | $18,136 | $19,224 | $20,377 | $21,600 | $22,896 |
| = Gross Equity Income | $16,398 | $17,721 | $19,113 | $20,578 | $22,119 | $23,740 | $25,446 | $27,243 | $29,134 | $31,125 |
| Capitalization Rate | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% |
| Cash on Cash Return | 1.5% | 2.1% | 2.6% | 3.2% | 3.8% | 4.4% | 5.0% | 5.7% | 6.4% | 7.1% |
| Return on Equity | 19.7% | 17.8% | 16.4% | 15.3% | 14.3% | 13.6% | 12.9% | 12.4% | 11.9% | 11.5% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $239,422 | $253,788 | $269,015 | $285,156 | $302,265 | $320,401 | $339,625 | $360,002 | $381,603 | $404,499 |
| - Loan Balance | ($156,342) | ($154,456) | ($152,444) | ($150,298) | ($148,007) | ($145,563) | ($142,956) | ($140,174) | ($137,205) | ($134,038) |
| = Equity | $83,080 | $99,331 | $116,571 | $134,858 | $154,258 | $174,838 | $196,669 | $219,829 | $244,397 | $270,461 |
| 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 | $59,138 | $73,953 | $89,669 | $106,343 | $124,031 | $142,798 | $162,707 | $183,828 | $206,237 | $230,011 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $83,080 | $99,331 | $116,571 | $134,858 | $154,258 | $174,838 | $196,669 | $219,829 | $244,397 | $270,461 |
| - Closing Costs | ($16,760) | ($17,765) | ($18,831) | ($19,961) | ($21,159) | ($22,428) | ($23,774) | ($25,200) | ($26,712) | ($28,315) |
| = Proceeds After Sale | $66,321 | $81,566 | $97,740 | $114,897 | $133,099 | $152,410 | $172,895 | $194,629 | $217,685 | $242,146 |
| + Cumulative Cash Flow | $1,078 | $2,549 | $4,423 | $6,713 | $9,432 | $12,592 | $16,207 | $20,290 | $24,855 | $29,917 |
| - Initial Cash Invested | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) | ($71,601) |
| = Net Profit | ($4,202) | $12,514 | $30,562 | $50,010 | $70,931 | $93,401 | $117,502 | $143,318 | $170,939 | $200,462 |
| Internal Rate of Return | -5.9% | 8.4% | 12.8% | 14.5% | 15.2% | 15.4% | 15.5% | 15.4% | 15.3% | 15.1% |
| Return on Investment | -5.9% | 17.5% | 42.7% | 69.8% | 99.1% | 130.4% | 164.1% | 200.2% | 238.7% | 280.0% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
