Property Information
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 | $25,500 | $26,265 | $27,053 | $27,865 | $28,700 | $29,561 | $30,448 | $31,362 | $32,303 | $33,272 |
| Vacancy Losses | ($2,040) | ($2,101) | ($2,164) | ($2,229) | ($2,296) | ($2,365) | ($2,436) | ($2,509) | ($2,584) | ($2,662) |
| Operating Income | $23,460 | $24,164 | $24,889 | $25,635 | $26,404 | $27,197 | $28,012 | $28,853 | $29,718 | $30,610 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,239) | ($2,306) | ($2,376) | ($2,447) | ($2,520) | ($2,596) | ($2,674) | ($2,754) | ($2,837) | ($2,922) |
| Insurance | ($1,260) | ($1,297) | ($1,336) | ($1,376) | ($1,418) | ($1,460) | ($1,504) | ($1,549) | ($1,596) | ($1,643) |
| 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 | ($412) | ($424) | ($437) | ($450) | ($464) | ($478) | ($492) | ($507) | ($522) | ($538) |
| Maintenance | ($510) | ($525) | ($541) | ($557) | ($574) | ($591) | ($609) | ($627) | ($646) | ($665) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,717) | ($5,888) | ($6,065) | ($6,247) | ($6,434) | ($6,627) | ($6,826) | ($7,031) | ($7,242) | ($7,459) |
| 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 | $17,743 | $18,276 | $18,824 | $19,389 | $19,970 | $20,569 | $21,186 | $21,822 | $22,477 | $23,151 |
| - Mortgage Payments | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) | ($15,922) |
| = Cash Flow | $1,821 | $2,353 | $2,901 | $3,466 | $4,048 | $4,647 | $5,264 | $5,900 | $6,554 | $7,229 |
| + Principal Reduction | $2,346 | $2,504 | $2,671 | $2,850 | $3,041 | $3,245 | $3,462 | $3,694 | $3,941 | $4,205 |
| + Appreciation | $16,794 | $17,802 | $18,870 | $20,002 | $21,202 | $22,474 | $23,823 | $25,252 | $26,767 | $28,373 |
| = Gross Equity Income | $20,961 | $22,658 | $24,442 | $26,318 | $28,291 | $30,366 | $32,549 | $34,845 | $37,262 | $39,807 |
| Capitalization Rate | 6.0% | 5.8% | 5.6% | 5.5% | 5.3% | 5.2% | 5.0% | 4.9% | 4.8% | 4.6% |
| Cash on Cash Return | 2.4% | 3.1% | 3.9% | 4.6% | 5.4% | 6.2% | 7.0% | 7.9% | 8.8% | 9.7% |
| Return on Equity | 23.5% | 20.7% | 18.7% | 17.1% | 15.9% | 14.9% | 14.1% | 13.4% | 12.8% | 12.3% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $296,694 | $314,496 | $333,365 | $353,367 | $374,569 | $397,043 | $420,866 | $446,118 | $472,885 | $501,258 |
| - Loan Balance | ($207,579) | ($205,075) | ($202,404) | ($199,554) | ($196,513) | ($193,268) | ($189,806) | ($186,112) | ($182,171) | ($177,966) |
| = Equity | $89,115 | $109,421 | $130,962 | $153,814 | $178,057 | $203,775 | $231,060 | $260,006 | $290,714 | $323,292 |
| 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 | $59,446 | $77,971 | $97,625 | $118,477 | $140,600 | $164,071 | $188,973 | $215,394 | $243,425 | $273,166 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $89,115 | $109,421 | $130,962 | $153,814 | $178,057 | $203,775 | $231,060 | $260,006 | $290,714 | $323,292 |
| - Closing Costs | ($20,769) | ($22,015) | ($23,336) | ($24,736) | ($26,220) | ($27,793) | ($29,461) | ($31,228) | ($33,102) | ($35,088) |
| = Proceeds After Sale | $68,347 | $87,406 | $107,626 | $129,078 | $151,837 | $175,982 | $201,599 | $228,777 | $257,612 | $288,204 |
| + Cumulative Cash Flow | $1,821 | $4,174 | $7,075 | $10,542 | $14,589 | $19,236 | $24,500 | $30,400 | $36,954 | $44,183 |
| - Initial Cash Invested | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) | ($74,873) |
| = Net Profit | ($4,706) | $16,707 | $39,828 | $64,746 | $91,553 | $120,345 | $151,226 | $184,304 | $219,693 | $257,513 |
| Internal Rate of Return | -6.3% | 10.7% | 15.6% | 17.4% | 18.0% | 18.2% | 18.1% | 17.9% | 17.6% | 17.4% |
| Return on Investment | -6.3% | 22.3% | 53.2% | 86.5% | 122.3% | 160.7% | 202.0% | 246.2% | 293.4% | 343.9% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
