Property Information
SOLD
New Construction in Huntsville Metro
Huntsville, AL 35811
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $27,000 | $27,810 | $28,644 | $29,504 | $30,389 | $31,300 | $32,239 | $33,207 | $34,203 | $35,229 |
| Vacancy Losses | ($2,160) | ($2,225) | ($2,292) | ($2,360) | ($2,431) | ($2,504) | ($2,579) | ($2,657) | ($2,736) | ($2,818) |
| Operating Income | $24,840 | $25,585 | $26,353 | $27,143 | $27,958 | $28,796 | $29,660 | $30,550 | $31,467 | $32,411 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,231) | ($2,297) | ($2,366) | ($2,437) | ($2,510) | ($2,586) | ($2,663) | ($2,743) | ($2,826) | ($2,910) |
| Insurance | ($1,255) | ($1,292) | ($1,331) | ($1,371) | ($1,412) | ($1,455) | ($1,498) | ($1,543) | ($1,589) | ($1,637) |
| 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 | ($500) | ($515) | ($530) | ($546) | ($563) | ($580) | ($597) | ($615) | ($633) | ($652) |
| Maintenance | ($540) | ($556) | ($573) | ($590) | ($608) | ($626) | ($645) | ($664) | ($684) | ($705) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,821) | ($5,996) | ($6,176) | ($6,361) | ($6,552) | ($6,748) | ($6,951) | ($7,159) | ($7,374) | ($7,595) |
| 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 | $19,019 | $19,589 | $20,177 | $20,782 | $21,406 | $22,048 | $22,709 | $23,391 | $24,092 | $24,815 |
| - Mortgage Payments | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) |
| = Cash Flow | $3,158 | $3,729 | $4,316 | $4,922 | $5,545 | $6,187 | $6,849 | $7,530 | $8,232 | $8,954 |
| + Principal Reduction | $2,337 | $2,494 | $2,661 | $2,839 | $3,029 | $3,232 | $3,449 | $3,680 | $3,926 | $4,189 |
| + Appreciation | $16,729 | $17,733 | $18,797 | $19,924 | $21,120 | $22,387 | $23,730 | $25,154 | $26,663 | $28,263 |
| = Gross Equity Income | $22,224 | $23,955 | $25,774 | $27,685 | $29,694 | $31,806 | $34,028 | $36,364 | $38,821 | $41,406 |
| Capitalization Rate | 6.4% | 6.3% | 6.1% | 5.9% | 5.7% | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% |
| Cash on Cash Return | 4.2% | 5.0% | 5.8% | 6.6% | 7.4% | 8.3% | 9.2% | 10.1% | 11.0% | 12.0% |
| Return on Equity | 25.0% | 22.0% | 19.8% | 18.1% | 16.7% | 15.7% | 14.8% | 14.0% | 13.4% | 12.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $295,544 | $313,277 | $332,073 | $351,998 | $373,117 | $395,504 | $419,235 | $444,389 | $471,052 | $499,315 |
| - Loan Balance | ($206,774) | ($204,280) | ($201,619) | ($198,780) | ($195,751) | ($192,519) | ($189,070) | ($185,391) | ($181,465) | ($177,276) |
| = Equity | $88,770 | $108,997 | $130,454 | $153,218 | $177,367 | $202,986 | $230,165 | $258,998 | $289,588 | $322,040 |
| Loan-to-Value Ratio | 70.0% | 65.2% | 60.7% | 56.5% | 52.5% | 48.7% | 45.1% | 41.7% | 38.5% | 35.5% |
| Potential Cash-Out Refi | $59,216 | $77,669 | $97,247 | $118,018 | $140,055 | $163,435 | $188,241 | $214,559 | $242,482 | $272,108 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $88,770 | $108,997 | $130,454 | $153,218 | $177,367 | $202,986 | $230,165 | $258,998 | $289,588 | $322,040 |
| - Closing Costs | ($20,688) | ($21,929) | ($23,245) | ($24,640) | ($26,118) | ($27,685) | ($29,346) | ($31,107) | ($32,974) | ($34,952) |
| = Proceeds After Sale | $68,082 | $87,067 | $107,209 | $128,578 | $151,248 | $175,300 | $200,818 | $227,891 | $256,614 | $287,087 |
| + Cumulative Cash Flow | $3,158 | $6,887 | $11,203 | $16,124 | $21,669 | $27,857 | $34,705 | $42,235 | $50,467 | $59,421 |
| - Initial Cash Invested | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) | ($74,583) |
| = Net Profit | ($3,343) | $19,371 | $43,829 | $70,119 | $98,335 | $128,574 | $160,941 | $195,543 | $232,498 | $271,926 |
| Internal Rate of Return | -4.5% | 12.5% | 17.3% | 18.9% | 19.5% | 19.6% | 19.4% | 19.2% | 18.9% | 18.6% |
| Return on Investment | -4.5% | 26.0% | 58.8% | 94.0% | 131.8% | 172.4% | 215.8% | 262.2% | 311.7% | 364.6% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
