Property Information
New Construction in Huntsville Metro
Athens, AL 35613
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $25,800 | $26,574 | $27,371 | $28,192 | $29,038 | $29,909 | $30,807 | $31,731 | $32,683 | $33,663 |
| Vacancy Losses | ($2,064) | ($2,126) | ($2,190) | ($2,255) | ($2,323) | ($2,393) | ($2,465) | ($2,538) | ($2,615) | ($2,693) |
| Operating Income | $23,736 | $24,448 | $25,182 | $25,937 | $26,715 | $27,517 | $28,342 | $29,192 | $30,068 | $30,970 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,399) | ($2,471) | ($2,545) | ($2,622) | ($2,700) | ($2,781) | ($2,865) | ($2,951) | ($3,039) | ($3,130) |
| Insurance | ($1,350) | ($1,390) | ($1,432) | ($1,475) | ($1,519) | ($1,564) | ($1,611) | ($1,660) | ($1,710) | ($1,761) |
| 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 | ($150) | ($155) | ($159) | ($164) | ($169) | ($174) | ($179) | ($184) | ($190) | ($196) |
| Maintenance | ($516) | ($531) | ($547) | ($564) | ($581) | ($598) | ($616) | ($635) | ($654) | ($673) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,711) | ($5,882) | ($6,058) | ($6,240) | ($6,427) | ($6,620) | ($6,819) | ($7,023) | ($7,234) | ($7,451) |
| 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 | $18,025 | $18,566 | $19,123 | $19,697 | $20,288 | $20,896 | $21,523 | $22,169 | $22,834 | $23,519 |
| - Mortgage Payments | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) | ($15,966) |
| = Cash Flow | $2,059 | $2,600 | $3,157 | $3,731 | $4,322 | $4,930 | $5,557 | $6,203 | $6,868 | $7,553 |
| + Principal Reduction | $2,827 | $2,998 | $3,179 | $3,371 | $3,574 | $3,790 | $4,018 | $4,261 | $4,518 | $4,791 |
| + Appreciation | $17,994 | $19,073 | $20,218 | $21,431 | $22,717 | $24,080 | $25,524 | $27,056 | $28,679 | $30,400 |
| = Gross Equity Income | $22,880 | $24,671 | $26,554 | $28,532 | $30,612 | $32,800 | $35,100 | $37,520 | $40,065 | $42,744 |
| Capitalization Rate | 5.7% | 5.5% | 5.4% | 5.2% | 5.1% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% |
| Cash on Cash Return | 2.6% | 3.2% | 3.9% | 4.7% | 5.4% | 6.1% | 6.9% | 7.7% | 8.6% | 9.4% |
| Return on Equity | 23.9% | 20.9% | 18.8% | 17.2% | 15.9% | 14.9% | 14.1% | 13.3% | 12.7% | 12.2% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $317,889 | $336,962 | $357,180 | $378,611 | $401,327 | $425,407 | $450,931 | $477,987 | $506,666 | $537,066 |
| - Loan Balance | ($222,094) | ($219,096) | ($215,918) | ($212,547) | ($208,973) | ($205,184) | ($201,165) | ($196,904) | ($192,386) | ($187,595) |
| = Equity | $95,795 | $117,866 | $141,262 | $166,063 | $192,354 | $220,223 | $249,766 | $281,083 | $314,280 | $349,471 |
| Loan-to-Value Ratio | 69.9% | 65.0% | 60.5% | 56.1% | 52.1% | 48.2% | 44.6% | 41.2% | 38.0% | 34.9% |
| Potential Cash-Out Refi | $64,006 | $84,169 | $105,544 | $128,202 | $152,221 | $177,682 | $204,673 | $233,284 | $263,613 | $295,764 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,795 | $117,866 | $141,262 | $166,063 | $192,354 | $220,223 | $249,766 | $281,083 | $314,280 | $349,471 |
| - Closing Costs | ($22,252) | ($23,587) | ($25,003) | ($26,503) | ($28,093) | ($29,778) | ($31,565) | ($33,459) | ($35,467) | ($37,595) |
| = Proceeds After Sale | $73,542 | $94,278 | $116,259 | $139,560 | $164,261 | $190,445 | $218,201 | $247,624 | $278,813 | $311,876 |
| + Cumulative Cash Flow | $2,059 | $4,660 | $7,817 | $11,548 | $15,869 | $20,800 | $26,357 | $32,560 | $39,428 | $46,981 |
| - Initial Cash Invested | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) | ($80,222) |
| = Net Profit | ($4,620) | $18,716 | $43,854 | $70,886 | $99,908 | $131,023 | $164,336 | $199,962 | $238,020 | $278,635 |
| Internal Rate of Return | -5.8% | 11.2% | 16.0% | 17.7% | 18.3% | 18.4% | 18.3% | 18.0% | 17.8% | 17.5% |
| Return on Investment | -5.8% | 23.3% | 54.7% | 88.4% | 124.5% | 163.3% | 204.9% | 249.3% | 296.7% | 347.3% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
