New Construction Cullman, Alabama
Cullman, AL 35057
3 Bedroom, 2 Bath complete summer of 2021
Square Feet1,375
Initial Market Value$219,900
Purchase Price$219,900
Downpayment$54,975
Loan Origination Fees$3,711
Depreciable Closing Costs$7,697
Other Closing Costs and Fixup$0
Initial Cash Invested$66,382
Cost per Square Foot$160
Monthly Rent per Square Foot$1.13
IncomeMonthlyAnnual
Gross Rent$1,550$18,600
Vacancy Losses($124)($1,488)
Operating Income$1,426$17,112
ExpensesMonthlyAnnual
Property Taxes($110)($1,319)
Insurance($82)($990)
Management Fees($114)($1,369)
Leasing/Advertising Fees$0$0
Association Fees$0$0
Maintenance($47)($558)
Other($124)($1,488)
Operating Expenses($477)($5,724)
Net PerformanceMonthlyAnnual
Net Operating Income$949$11,388
- Mortgage Payments($1,096)($13,154)
= Cash Flow($147)($1,766)
+ Principal Reduction$140$1,679
+ First-Year Appreciation$1,100$13,194
= Gross Equity Income$1,092$13,107
+ Tax Savings$193$2,320
= GEI w/Tax Savings$1,286$15,427
Mortgage InfoFirstSecond
Loan-to-Value Ratio75%0%
Loan Amount$164,925$0
Monthly Payment$1,096.14$0.00
Loan TypeAmortizing Fixed
Term30 Years
Interest Rate6.990%0.000%
Monthly PMI$0
Financial Indicators
Debt Coverage Ratio0.87
Annual Gross Rent Multiplier12
Monthly Gross Rent Multiplier142
Capitalization Rate5.2%
Cash on Cash Return-3%
Total Return on Investment20%
+ Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc.
Assumptions
Real Estate Appreciation Rate6%
Vacancy Rate8%
Management Fee8%
Maintenance Percentage3%
Comments
Very nice 3 bedroom, 3 bath home w/ 2 car garage. Vinyl siding & brick exterior, covered back porch. Sodded yard, established neighborhood, conveniently located 2 miles to I-65. Cullman City School District. Stainless steel appliances & granite surfaces.
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.