New Construction in Birmingham Metro
Mount Olive, AL 35117
4 Beds - 2 Baths - 2 Car Garage
Square Feet1,774
Initial Market Value$301,900
Purchase Price$301,900
Downpayment$90,570
Loan Origination Fees$2,113
Depreciable Closing Costs$3,019
Other Closing Costs and Fixup$0
Initial Cash Invested$95,702
Cost per Square Foot$170
Monthly Rent per Square Foot$1.03
IncomeMonthlyAnnual
Gross Rent$1,835$22,020
Vacancy Losses($147)($1,762)
Operating Income$1,688$20,258
ExpensesMonthlyAnnual
Property Taxes($201)($2,415)
Insurance($113)($1,359)
Management Fees($108)($1,296)
Leasing/Advertising Fees$0$0
Association Fees($30)($360)
Maintenance($37)($440)
Other$0$0
Operating Expenses($489)($5,870)
Net PerformanceMonthlyAnnual
Net Operating Income$1,199$14,388
- Mortgage Payments($1,336)($16,029)
= Cash Flow($137)($1,641)
+ Principal Reduction$197$2,362
+ First-Year Appreciation$1,510$18,114
= Gross Equity Income$1,570$18,835
+ Tax Savings$234$2,803
= GEI w/Tax Savings$1,803$21,638
Mortgage InfoFirstSecond
Loan-to-Value Ratio70%0%
Loan Amount$211,330$0
Monthly Payment$1,335.75$0.00
Loan TypeAmortizing Fixed
Term30 Years
Interest Rate6.500%0.000%
Monthly PMI$0
Financial Indicators
Debt Coverage Ratio0.90
Annual Gross Rent Multiplier14
Monthly Gross Rent Multiplier165
Capitalization Rate4.8%
Cash on Cash Return-2%
Total Return on Investment20%
+ Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc.
Assumptions
Real Estate Appreciation Rate6%
Vacancy Rate8%
Management Fee$108
Maintenance Percentage2%
Comments
Photos may be representative. Furniture not included.
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.