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 | $28,740 | $29,602 | $30,490 | $31,405 | $32,347 | $33,318 | $34,317 | $35,347 | $36,407 | $37,499 |
| Vacancy Losses | ($2,299) | ($2,368) | ($2,439) | ($2,512) | ($2,588) | ($2,665) | ($2,745) | ($2,828) | ($2,913) | ($3,000) |
| Operating Income | $26,441 | $27,234 | $28,051 | $28,893 | $29,759 | $30,652 | $31,572 | $32,519 | $33,494 | $34,499 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,808) | ($2,892) | ($2,979) | ($3,068) | ($3,160) | ($3,255) | ($3,353) | ($3,453) | ($3,557) | ($3,664) |
| Insurance | ($1,579) | ($1,627) | ($1,676) | ($1,726) | ($1,778) | ($1,831) | ($1,886) | ($1,943) | ($2,001) | ($2,061) |
| 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 | ($575) | ($592) | ($610) | ($628) | ($647) | ($666) | ($686) | ($707) | ($728) | ($750) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,688) | ($6,889) | ($7,095) | ($7,308) | ($7,528) | ($7,753) | ($7,986) | ($8,226) | ($8,472) | ($8,726) |
| 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 | $19,753 | $20,345 | $20,956 | $21,584 | $22,232 | $22,899 | $23,586 | $24,293 | $25,022 | $25,773 |
| - Mortgage Payments | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) | ($18,635) |
| = Cash Flow | $1,117 | $1,710 | $2,320 | $2,949 | $3,596 | $4,263 | $4,950 | $5,658 | $6,387 | $7,137 |
| + Principal Reduction | $2,746 | $2,930 | $3,126 | $3,336 | $3,559 | $3,798 | $4,052 | $4,323 | $4,613 | $4,922 |
| + Appreciation | $21,059 | $22,323 | $23,662 | $25,082 | $26,587 | $28,182 | $29,873 | $31,666 | $33,565 | $35,579 |
| = Gross Equity Income | $24,923 | $26,963 | $29,109 | $31,367 | $33,743 | $36,243 | $38,875 | $41,647 | $44,565 | $47,638 |
| Capitalization Rate | 5.3% | 5.2% | 5.0% | 4.9% | 4.7% | 4.6% | 4.5% | 4.3% | 4.2% | 4.1% |
| Cash on Cash Return | 1.0% | 1.5% | 2.1% | 2.7% | 3.2% | 3.8% | 4.4% | 5.1% | 5.7% | 6.4% |
| Return on Equity | 19.3% | 17.5% | 16.1% | 15.0% | 14.1% | 13.3% | 12.7% | 12.2% | 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 | $372,049 | $394,372 | $418,035 | $443,117 | $469,704 | $497,886 | $527,759 | $559,425 | $592,990 | $628,570 |
| - Loan Balance | ($242,947) | ($240,017) | ($236,890) | ($233,555) | ($229,995) | ($226,198) | ($222,146) | ($217,823) | ($213,210) | ($208,288) |
| = Equity | $129,103 | $154,356 | $181,144 | $209,562 | $239,708 | $271,688 | $305,613 | $341,602 | $379,780 | $420,281 |
| 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 | $91,898 | $114,918 | $139,341 | $165,251 | $192,738 | $221,900 | $252,837 | $285,659 | $320,481 | $357,424 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $129,103 | $154,356 | $181,144 | $209,562 | $239,708 | $271,688 | $305,613 | $341,602 | $379,780 | $420,281 |
| - Closing Costs | ($26,043) | ($27,606) | ($29,262) | ($31,018) | ($32,879) | ($34,852) | ($36,943) | ($39,160) | ($41,509) | ($44,000) |
| = Proceeds After Sale | $103,059 | $126,750 | $151,882 | $178,544 | $206,829 | $236,836 | $268,670 | $302,442 | $338,271 | $376,281 |
| + Cumulative Cash Flow | $1,117 | $2,827 | $5,147 | $8,096 | $11,693 | $15,956 | $20,906 | $26,564 | $32,951 | $40,088 |
| - Initial Cash Invested | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) | ($111,264) |
| = Net Profit | ($7,087) | $18,313 | $45,765 | $75,376 | $107,258 | $141,528 | $178,312 | $217,742 | $259,958 | $305,106 |
| Internal Rate of Return | -6.4% | 8.0% | 12.3% | 14.0% | 14.8% | 15.0% | 15.1% | 15.1% | 14.9% | 14.8% |
| Return on Investment | -6.4% | 16.5% | 41.1% | 67.7% | 96.4% | 127.2% | 160.3% | 195.7% | 233.6% | 274.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
