Property Information
IN ESCROW
New Construction in Tuscaloosa
Tuscaloosa, AL 35055
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $23,940 | $24,658 | $25,398 | $26,160 | $26,945 | $27,753 | $28,586 | $29,443 | $30,326 | $31,236 |
| Vacancy Losses | ($1,915) | ($1,973) | ($2,032) | ($2,093) | ($2,156) | ($2,220) | ($2,287) | ($2,355) | ($2,426) | ($2,499) |
| Operating Income | $22,025 | $22,686 | $23,366 | $24,067 | $24,789 | $25,533 | $26,299 | $27,088 | $27,900 | $28,737 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,309) | ($2,379) | ($2,450) | ($2,523) | ($2,599) | ($2,677) | ($2,757) | ($2,840) | ($2,925) | ($3,013) |
| Insurance | ($1,485) | ($1,529) | ($1,575) | ($1,622) | ($1,671) | ($1,721) | ($1,773) | ($1,826) | ($1,881) | ($1,937) |
| 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 | ($300) | ($309) | ($318) | ($328) | ($338) | ($348) | ($358) | ($369) | ($380) | ($391) |
| Maintenance | ($479) | ($493) | ($508) | ($523) | ($539) | ($555) | ($572) | ($589) | ($607) | ($625) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($4,573) | ($4,710) | ($4,851) | ($4,997) | ($5,147) | ($5,301) | ($5,460) | ($5,624) | ($5,792) | ($5,966) |
| 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 | $17,452 | $17,976 | $18,515 | $19,070 | $19,643 | $20,232 | $20,839 | $21,464 | $22,108 | $22,771 |
| - Mortgage Payments | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) | ($14,158) |
| = Cash Flow | $3,294 | $3,818 | $4,357 | $4,913 | $5,485 | $6,074 | $6,681 | $7,306 | $7,950 | $8,613 |
| + Principal Reduction | $4,365 | $4,542 | $4,727 | $4,919 | $5,119 | $5,327 | $5,543 | $5,769 | $6,003 | $6,247 |
| + Appreciation | $19,794 | $20,982 | $22,241 | $23,575 | $24,989 | $26,489 | $28,078 | $29,763 | $31,549 | $33,442 |
| = Gross Equity Income | $27,453 | $29,342 | $31,324 | $33,406 | $35,593 | $37,890 | $40,302 | $42,837 | $45,502 | $48,302 |
| Capitalization Rate | 5.0% | 4.8% | 4.7% | 4.6% | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% | 3.9% |
| Cash on Cash Return | 3.5% | 4.0% | 4.6% | 5.2% | 5.8% | 6.4% | 7.0% | 7.7% | 8.4% | 9.1% |
| Return on Equity | 25.7% | 22.2% | 19.7% | 17.8% | 16.3% | 15.2% | 14.2% | 13.4% | 12.8% | 12.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $349,694 | $370,676 | $392,916 | $416,491 | $441,481 | $467,969 | $496,048 | $525,810 | $557,359 | $590,801 |
| - Loan Balance | ($243,060) | ($238,518) | ($233,791) | ($228,872) | ($223,754) | ($218,427) | ($212,883) | ($207,115) | ($201,112) | ($194,865) |
| = Equity | $106,634 | $132,158 | $159,125 | $187,619 | $217,727 | $249,543 | $283,164 | $318,696 | $356,247 | $395,936 |
| Loan-to-Value Ratio | 69.5% | 64.3% | 59.5% | 55.0% | 50.7% | 46.7% | 42.9% | 39.4% | 36.1% | 33.0% |
| Potential Cash-Out Refi | $71,664 | $95,090 | $119,833 | $145,970 | $173,579 | $202,746 | $233,559 | $266,115 | $300,511 | $336,855 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $106,634 | $132,158 | $159,125 | $187,619 | $217,727 | $249,543 | $283,164 | $318,696 | $356,247 | $395,936 |
| - Closing Costs | ($24,479) | ($25,947) | ($27,504) | ($29,154) | ($30,904) | ($32,758) | ($34,723) | ($36,807) | ($39,015) | ($41,356) |
| = Proceeds After Sale | $82,155 | $106,210 | $131,621 | $158,464 | $186,823 | $216,785 | $248,441 | $281,889 | $317,232 | $354,580 |
| + Cumulative Cash Flow | $3,294 | $7,112 | $11,469 | $16,382 | $21,867 | $27,941 | $34,622 | $41,928 | $49,878 | $58,491 |
| - Initial Cash Invested | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) | ($94,846) |
| = Net Profit | ($9,397) | $18,476 | $48,244 | $80,000 | $113,844 | $149,879 | $188,216 | $228,970 | $272,263 | $318,224 |
| Internal Rate of Return | -9.9% | 9.5% | 15.1% | 17.2% | 18.0% | 18.2% | 18.1% | 17.9% | 17.7% | 17.4% |
| Return on Investment | -9.9% | 19.5% | 50.9% | 84.3% | 120.0% | 158.0% | 198.4% | 241.4% | 287.1% | 335.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
