Property Information
New Construction in Huntsville Metro
Madison, AL 35756
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $27,540 | $28,366 | $29,217 | $30,094 | $30,997 | $31,926 | $32,884 | $33,871 | $34,887 | $35,933 |
| Vacancy Losses | ($2,203) | ($2,269) | ($2,337) | ($2,407) | ($2,480) | ($2,554) | ($2,631) | ($2,710) | ($2,791) | ($2,875) |
| Operating Income | $25,337 | $26,097 | $26,880 | $27,686 | $28,517 | $29,372 | $30,253 | $31,161 | $32,096 | $33,059 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,701) | ($2,782) | ($2,865) | ($2,951) | ($3,039) | ($3,131) | ($3,225) | ($3,321) | ($3,421) | ($3,524) |
| Insurance | ($1,519) | ($1,565) | ($1,612) | ($1,660) | ($1,710) | ($1,761) | ($1,814) | ($1,868) | ($1,924) | ($1,982) |
| 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 | ($504) | ($519) | ($535) | ($551) | ($567) | ($584) | ($602) | ($620) | ($638) | ($658) |
| Maintenance | ($551) | ($567) | ($584) | ($602) | ($620) | ($639) | ($658) | ($677) | ($698) | ($719) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,570) | ($6,767) | ($6,970) | ($7,180) | ($7,395) | ($7,617) | ($7,845) | ($8,081) | ($8,323) | ($8,573) |
| 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 | $18,766 | $19,329 | $19,909 | $20,507 | $21,122 | $21,755 | $22,408 | $23,080 | $23,773 | $24,486 |
| - Mortgage Payments | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) | ($17,923) |
| = Cash Flow | $844 | $1,407 | $1,987 | $2,584 | $3,199 | $3,833 | $4,486 | $5,158 | $5,850 | $6,563 |
| + Principal Reduction | $2,641 | $2,818 | $3,007 | $3,208 | $3,423 | $3,652 | $3,897 | $4,158 | $4,436 | $4,733 |
| + Appreciation | $20,254 | $21,469 | $22,757 | $24,123 | $25,570 | $27,104 | $28,731 | $30,454 | $32,282 | $34,219 |
| = Gross Equity Income | $23,739 | $25,694 | $27,751 | $29,915 | $32,192 | $34,589 | $37,113 | $39,770 | $42,568 | $45,515 |
| Capitalization Rate | 5.2% | 5.1% | 5.0% | 4.8% | 4.7% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 0.8% | 1.3% | 1.9% | 2.4% | 3.0% | 3.6% | 4.2% | 4.8% | 5.5% | 6.1% |
| Return on Equity | 19.1% | 17.3% | 15.9% | 14.8% | 14.0% | 13.2% | 12.6% | 12.1% | 11.7% | 11.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $357,819 | $379,288 | $402,045 | $426,168 | $451,738 | $478,842 | $507,573 | $538,027 | $570,309 | $604,528 |
| - Loan Balance | ($233,654) | ($230,836) | ($227,830) | ($224,621) | ($221,198) | ($217,546) | ($213,649) | ($209,492) | ($205,055) | ($200,322) |
| = Equity | $124,165 | $148,452 | $174,216 | $201,547 | $230,540 | $261,296 | $293,924 | $328,536 | $365,254 | $404,206 |
| 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 | $88,383 | $110,523 | $134,011 | $158,930 | $185,366 | $213,412 | $243,166 | $274,733 | $308,223 | $343,753 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $124,165 | $148,452 | $174,216 | $201,547 | $230,540 | $261,296 | $293,924 | $328,536 | $365,254 | $404,206 |
| - Closing Costs | ($25,047) | ($26,550) | ($28,143) | ($29,832) | ($31,622) | ($33,519) | ($35,530) | ($37,662) | ($39,922) | ($42,317) |
| = Proceeds After Sale | $99,117 | $121,902 | $146,073 | $171,715 | $198,918 | $227,777 | $258,394 | $290,874 | $325,332 | $361,889 |
| + Cumulative Cash Flow | $844 | $2,251 | $4,237 | $6,821 | $10,021 | $13,853 | $18,339 | $23,497 | $29,347 | $35,910 |
| - Initial Cash Invested | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) | ($107,008) |
| = Net Profit | ($7,047) | $17,144 | $43,302 | $71,528 | $101,931 | $134,623 | $169,724 | $207,362 | $247,671 | $290,791 |
| Internal Rate of Return | -6.6% | 7.7% | 12.1% | 13.8% | 14.6% | 14.9% | 14.9% | 14.9% | 14.8% | 14.6% |
| Return on Investment | -6.6% | 16.0% | 40.5% | 66.8% | 95.3% | 125.8% | 158.6% | 193.8% | 231.5% | 271.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
