Property Information
New Construction in Huntsville Metro
Owens Cross Roads, AL 35763
| Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Gross Rent | $22,740 | $23,422 | $24,125 | $24,849 | $25,594 | $26,362 | $27,153 | $27,967 | $28,806 | $29,671 |
| Vacancy Losses | ($1,819) | ($1,874) | ($1,930) | ($1,988) | ($2,048) | ($2,109) | ($2,172) | ($2,237) | ($2,305) | ($2,374) |
| Operating Income | $20,921 | $21,548 | $22,195 | $22,861 | $23,547 | $24,253 | $24,981 | $25,730 | $26,502 | $27,297 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,079) | ($2,142) | ($2,206) | ($2,272) | ($2,340) | ($2,410) | ($2,483) | ($2,557) | ($2,634) | ($2,713) |
| Insurance | ($1,170) | ($1,205) | ($1,241) | ($1,278) | ($1,316) | ($1,356) | ($1,397) | ($1,438) | ($1,482) | ($1,526) |
| 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 | ($276) | ($284) | ($293) | ($302) | ($311) | ($320) | ($330) | ($339) | ($350) | ($360) |
| Maintenance | ($455) | ($468) | ($482) | ($497) | ($512) | ($527) | ($543) | ($559) | ($576) | ($593) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,276) | ($5,434) | ($5,597) | ($5,765) | ($5,938) | ($6,116) | ($6,299) | ($6,488) | ($6,683) | ($6,883) |
| 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 | $15,645 | $16,115 | $16,598 | $17,096 | $17,609 | $18,137 | $18,681 | $19,242 | $19,819 | $20,414 |
| - Mortgage Payments | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) | ($13,799) |
| = Cash Flow | $1,846 | $2,316 | $2,799 | $3,297 | $3,810 | $4,338 | $4,882 | $5,443 | $6,020 | $6,614 |
| + Principal Reduction | $2,033 | $2,170 | $2,315 | $2,470 | $2,635 | $2,812 | $3,000 | $3,201 | $3,416 | $3,644 |
| + Appreciation | $15,594 | $16,530 | $17,521 | $18,573 | $19,687 | $20,868 | $22,120 | $23,448 | $24,854 | $26,346 |
| = Gross Equity Income | $19,474 | $21,015 | $22,635 | $24,340 | $26,132 | $28,018 | $30,003 | $32,091 | $34,290 | $36,604 |
| 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 | 2.2% | 2.8% | 3.4% | 4.0% | 4.6% | 5.3% | 5.9% | 6.6% | 7.3% | 8.0% |
| Return on Equity | 20.4% | 18.4% | 16.9% | 15.7% | 14.7% | 13.9% | 13.3% | 12.7% | 12.2% | 11.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $275,494 | $292,024 | $309,545 | $328,118 | $347,805 | $368,673 | $390,794 | $414,241 | $439,096 | $465,441 |
| - Loan Balance | ($179,897) | ($177,727) | ($175,412) | ($172,942) | ($170,307) | ($167,495) | ($164,494) | ($161,293) | ($157,878) | ($154,233) |
| = Equity | $95,597 | $114,297 | $134,133 | $155,176 | $177,498 | $201,178 | $226,299 | $252,948 | $281,218 | $311,208 |
| 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 | $68,048 | $85,094 | $103,179 | $122,364 | $142,718 | $164,311 | $187,220 | $211,524 | $237,308 | $264,664 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $95,597 | $114,297 | $134,133 | $155,176 | $177,498 | $201,178 | $226,299 | $252,948 | $281,218 | $311,208 |
| - Closing Costs | ($19,285) | ($20,442) | ($21,668) | ($22,968) | ($24,346) | ($25,807) | ($27,356) | ($28,997) | ($30,737) | ($32,581) |
| = Proceeds After Sale | $76,313 | $93,855 | $112,465 | $132,208 | $153,152 | $175,371 | $198,944 | $223,951 | $250,481 | $278,627 |
| + Cumulative Cash Flow | $1,846 | $4,162 | $6,961 | $10,258 | $14,068 | $18,406 | $23,288 | $28,731 | $34,750 | $41,365 |
| - Initial Cash Invested | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) | ($82,388) |
| = Net Profit | ($4,229) | $15,629 | $37,037 | $60,077 | $84,831 | $111,389 | $139,843 | $170,293 | $202,843 | $237,604 |
| Internal Rate of Return | -5.1% | 9.2% | 13.4% | 15.1% | 15.8% | 16.0% | 16.1% | 16.0% | 15.8% | 15.6% |
| Return on Investment | -5.1% | 19.0% | 45.0% | 72.9% | 103.0% | 135.2% | 169.7% | 206.7% | 246.2% | 288.4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
