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 | $26,340 | $27,130 | $27,944 | $28,782 | $29,646 | $30,535 | $31,451 | $32,395 | $33,367 | $34,368 |
| Vacancy Losses | ($2,107) | ($2,170) | ($2,236) | ($2,303) | ($2,372) | ($2,443) | ($2,516) | ($2,592) | ($2,669) | ($2,749) |
| Operating Income | $24,233 | $24,960 | $25,709 | $26,480 | $27,274 | $28,092 | $28,935 | $29,803 | $30,697 | $31,618 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,544) | ($2,620) | ($2,699) | ($2,780) | ($2,863) | ($2,949) | ($3,038) | ($3,129) | ($3,223) | ($3,319) |
| Insurance | ($1,431) | ($1,474) | ($1,518) | ($1,564) | ($1,611) | ($1,659) | ($1,709) | ($1,760) | ($1,813) | ($1,867) |
| 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 | ($430) | ($443) | ($456) | ($470) | ($484) | ($498) | ($513) | ($529) | ($545) | ($561) |
| Maintenance | ($527) | ($543) | ($559) | ($576) | ($593) | ($611) | ($629) | ($648) | ($667) | ($687) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,228) | ($6,414) | ($6,607) | ($6,805) | ($7,009) | ($7,220) | ($7,436) | ($7,659) | ($7,889) | ($8,126) |
| 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 | $18,005 | $18,545 | $19,102 | $19,675 | $20,265 | $20,873 | $21,499 | $22,144 | $22,808 | $23,493 |
| - Mortgage Payments | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) | ($16,883) |
| = Cash Flow | $1,122 | $1,662 | $2,218 | $2,791 | $3,382 | $3,990 | $4,616 | $5,261 | $5,925 | $6,609 |
| + Principal Reduction | $2,488 | $2,655 | $2,832 | $3,022 | $3,225 | $3,440 | $3,671 | $3,917 | $4,179 | $4,459 |
| + Appreciation | $19,079 | $20,224 | $21,438 | $22,724 | $24,087 | $25,533 | $27,064 | $28,688 | $30,410 | $32,234 |
| = Gross Equity Income | $22,689 | $24,541 | $26,488 | $28,537 | $30,693 | $32,963 | $35,351 | $37,866 | $40,514 | $43,302 |
| Capitalization Rate | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 4.2% | 4.1% |
| Cash on Cash Return | 1.1% | 1.6% | 2.2% | 2.8% | 3.4% | 4.0% | 4.6% | 5.2% | 5.9% | 6.6% |
| Return on Equity | 19.4% | 17.5% | 16.1% | 15.0% | 14.1% | 13.4% | 12.8% | 12.2% | 11.8% | 11.4% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $337,069 | $357,294 | $378,731 | $401,455 | $425,542 | $451,075 | $478,139 | $506,828 | $537,237 | $569,472 |
| - Loan Balance | ($220,105) | ($217,450) | ($214,618) | ($211,596) | ($208,371) | ($204,931) | ($201,260) | ($197,343) | ($193,164) | ($188,706) |
| = Equity | $116,964 | $139,843 | $164,113 | $189,859 | $217,171 | $246,144 | $276,879 | $309,484 | $344,073 | $380,766 |
| 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 | $83,257 | $104,114 | $126,240 | $149,714 | $174,617 | $201,036 | $229,065 | $258,802 | $290,349 | $323,819 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $116,964 | $139,843 | $164,113 | $189,859 | $217,171 | $246,144 | $276,879 | $309,484 | $344,073 | $380,766 |
| - Closing Costs | ($23,595) | ($25,011) | ($26,511) | ($28,102) | ($29,788) | ($31,575) | ($33,470) | ($35,478) | ($37,607) | ($39,863) |
| = Proceeds After Sale | $93,370 | $114,833 | $137,602 | $161,757 | $187,383 | $214,569 | $243,410 | $274,006 | $306,466 | $340,903 |
| + Cumulative Cash Flow | $1,122 | $2,784 | $5,002 | $7,794 | $11,175 | $15,165 | $19,781 | $25,042 | $30,967 | $37,576 |
| - Initial Cash Invested | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) | ($100,803) |
| = Net Profit | ($6,311) | $16,814 | $41,801 | $68,748 | $97,756 | $128,931 | $162,388 | $198,245 | $236,630 | $277,677 |
| Internal Rate of Return | -6.3% | 8.1% | 12.4% | 14.1% | 14.8% | 15.1% | 15.2% | 15.1% | 15.0% | 14.9% |
| Return on Investment | -6.3% | 16.7% | 41.5% | 68.2% | 97.0% | 127.9% | 161.1% | 196.7% | 234.7% | 275.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
