Property Information
New Construction in Huntsville Metro
Huntsville, 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 | ($2,231) | ($2,298) | ($2,367) | ($2,438) | ($2,511) | ($2,586) | ($2,664) | ($2,744) | ($2,826) | ($2,911) |
| Insurance | ($1,255) | ($1,293) | ($1,331) | ($1,371) | ($1,413) | ($1,455) | ($1,499) | ($1,543) | ($1,590) | ($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 | ($412) | ($424) | ($437) | ($450) | ($464) | ($478) | ($492) | ($507) | ($522) | ($538) |
| Maintenance | ($527) | ($543) | ($559) | ($576) | ($593) | ($611) | ($629) | ($648) | ($667) | ($687) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,721) | ($5,892) | ($6,069) | ($6,251) | ($6,439) | ($6,632) | ($6,831) | ($7,036) | ($7,247) | ($7,464) |
| 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 | $18,512 | $19,067 | $19,639 | $20,228 | $20,835 | $21,460 | $22,104 | $22,767 | $23,450 | $24,154 |
| - Mortgage Payments | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) | ($15,865) |
| = Cash Flow | $2,647 | $3,202 | $3,774 | $4,364 | $4,971 | $5,596 | $6,239 | $6,903 | $7,586 | $8,289 |
| + Principal Reduction | $2,338 | $2,494 | $2,662 | $2,840 | $3,030 | $3,233 | $3,449 | $3,680 | $3,927 | $4,190 |
| + Appreciation | $16,733 | $17,737 | $18,802 | $19,930 | $21,125 | $22,393 | $23,736 | $25,161 | $26,670 | $28,271 |
| = Gross Equity Income | $21,718 | $23,434 | $25,238 | $27,133 | $29,126 | $31,221 | $33,425 | $35,744 | $38,183 | $40,749 |
| Capitalization Rate | 6.3% | 6.1% | 5.9% | 5.7% | 5.6% | 5.4% | 5.3% | 5.1% | 5.0% | 4.8% |
| Cash on Cash Return | 3.5% | 4.3% | 5.1% | 5.8% | 6.7% | 7.5% | 8.4% | 9.3% | 10.2% | 11.1% |
| Return on Equity | 24.5% | 21.5% | 19.3% | 17.7% | 16.4% | 15.4% | 14.5% | 13.8% | 13.2% | 12.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $295,621 | $313,359 | $332,160 | $352,090 | $373,215 | $395,608 | $419,344 | $444,505 | $471,175 | $499,446 |
| - Loan Balance | ($206,828) | ($204,334) | ($201,672) | ($198,832) | ($195,802) | ($192,570) | ($189,120) | ($185,440) | ($181,513) | ($177,323) |
| = Equity | $88,793 | $109,025 | $130,488 | $153,257 | $177,413 | $203,038 | $230,224 | $259,065 | $289,662 | $322,123 |
| 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 | $59,231 | $77,689 | $97,272 | $118,048 | $140,091 | $163,478 | $188,290 | $214,615 | $242,545 | $272,178 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $88,793 | $109,025 | $130,488 | $153,257 | $177,413 | $203,038 | $230,224 | $259,065 | $289,662 | $322,123 |
| - Closing Costs | ($20,693) | ($21,935) | ($23,251) | ($24,646) | ($26,125) | ($27,693) | ($29,354) | ($31,115) | ($32,982) | ($34,961) |
| = Proceeds After Sale | $68,100 | $87,090 | $107,237 | $128,611 | $151,288 | $175,346 | $200,870 | $227,950 | $256,680 | $287,162 |
| + Cumulative Cash Flow | $2,647 | $5,850 | $9,624 | $13,988 | $18,958 | $24,554 | $30,793 | $37,696 | $45,281 | $53,570 |
| - Initial Cash Invested | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) | ($74,603) |
| = Net Profit | ($3,856) | $18,337 | $42,258 | $67,996 | $95,643 | $125,297 | $157,061 | $191,043 | $227,359 | $266,129 |
| Internal Rate of Return | -5.2% | 11.8% | 16.6% | 18.3% | 18.9% | 19.0% | 18.9% | 18.7% | 18.4% | 18.1% |
| Return on Investment | -5.2% | 24.6% | 56.6% | 91.1% | 128.2% | 168.0% | 210.5% | 256.1% | 304.8% | 356.7% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
