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 | $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) | ($2,297) | ($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 | ($527) | ($543) | ($559) | ($576) | ($593) | ($611) | ($629) | ($648) | ($667) | ($687) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,808) | ($5,982) | ($6,162) | ($6,347) | ($6,537) | ($6,733) | ($6,935) | ($7,143) | ($7,357) | ($7,578) |
| 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 | $18,425 | $18,978 | $19,547 | $20,133 | $20,737 | $21,359 | $22,000 | $22,660 | $23,340 | $24,040 |
| - Mortgage Payments | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) | ($15,861) |
| = Cash Flow | $2,564 | $3,117 | $3,686 | $4,272 | $4,876 | $5,499 | $6,139 | $6,799 | $7,479 | $8,179 |
| + 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 | $21,630 | $23,343 | $25,144 | $27,036 | $29,026 | $31,118 | $33,318 | $35,633 | $38,068 | $40,631 |
| Capitalization Rate | 6.2% | 6.1% | 5.9% | 5.7% | 5.6% | 5.4% | 5.2% | 5.1% | 5.0% | 4.8% |
| Cash on Cash Return | 3.4% | 4.2% | 4.9% | 5.7% | 6.5% | 7.4% | 8.2% | 9.1% | 10.0% | 11.0% |
| Return on Equity | 24.4% | 21.4% | 19.3% | 17.6% | 16.4% | 15.3% | 14.5% | 13.8% | 13.1% | 12.6% |
| 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 | $2,564 | $5,681 | $9,367 | $13,639 | $18,516 | $24,014 | $30,154 | $36,953 | $44,432 | $52,612 |
| - 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 | ($3,937) | $18,165 | $41,993 | $67,634 | $95,181 | $124,732 | $156,389 | $190,261 | $226,463 | $265,116 |
| Internal Rate of Return | -5.3% | 11.7% | 16.5% | 18.2% | 18.8% | 18.9% | 18.8% | 18.6% | 18.3% | 18.1% |
| Return on Investment | -5.3% | 24.4% | 56.3% | 90.7% | 127.6% | 167.2% | 209.7% | 255.1% | 303.6% | 355.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.
