New Construction in the Birmingham Metro
Alabama
4bd • 2.5ba • Built: 2026
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $27,600 | $28,704 | $29,852 | $31,046 | $32,288 | $33,580 | $34,923 | $36,320 | $37,773 | $39,283 |
| Vacancy Losses | ($2,208) | ($2,296) | ($2,388) | ($2,484) | ($2,583) | ($2,686) | ($2,794) | ($2,906) | ($3,022) | ($3,143) |
| Operating Income | $25,392 | $26,408 | $27,464 | $28,563 | $29,705 | $30,893 | $32,129 | $33,414 | $34,751 | $36,141 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,404) | ($2,493) | ($2,586) | ($2,681) | ($2,780) | ($2,883) | ($2,990) | ($3,101) | ($3,215) | ($3,334) |
| Insurance | ($2,219) | ($2,302) | ($2,387) | ($2,475) | ($2,567) | ($2,662) | ($2,760) | ($2,862) | ($2,968) | ($3,078) |
| Management Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | ($960) | ($996) | ($1,032) | ($1,071) | ($1,110) | ($1,151) | ($1,194) | ($1,238) | ($1,284) | ($1,331) |
| Maintenance | ($828) | ($859) | ($890) | ($923) | ($958) | ($993) | ($1,030) | ($1,068) | ($1,107) | ($1,148) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,412) | ($6,649) | ($6,895) | ($7,150) | ($7,415) | ($7,689) | ($7,974) | ($8,269) | ($8,574) | ($8,892) |
| 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 | $18,980 | $19,759 | $20,569 | $21,412 | $22,290 | $23,204 | $24,155 | $25,146 | $26,176 | $27,249 |
| - Mortgage Payments | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) | ($16,837) |
| = Cash Flow | $2,143 | $2,921 | $3,732 | $4,575 | $5,453 | $6,367 | $7,318 | $8,308 | $9,339 | $10,412 |
| + Principal Reduction | $3,093 | $3,276 | $3,469 | $3,674 | $3,891 | $4,120 | $4,364 | $4,621 | $4,894 | $5,183 |
| + Appreciation | $18,495 | $19,420 | $20,391 | $21,410 | $22,481 | $23,605 | $24,785 | $26,024 | $27,326 | $28,692 |
| = Gross Equity Income | $23,731 | $25,617 | $27,591 | $29,659 | $31,825 | $34,092 | $36,467 | $38,954 | $41,559 | $44,287 |
| Capitalization Rate | 4.9% | 4.8% | 4.8% | 4.8% | 4.7% | 4.7% | 4.6% | 4.6% | 4.6% | 4.5% |
| Cash on Cash Return | 1.5% | 2.1% | 2.7% | 3.3% | 3.9% | 4.6% | 5.3% | 6.0% | 6.7% | 7.5% |
| Return on Equity | 15.7% | 14.7% | 14.0% | 13.3% | 12.8% | 12.3% | 11.9% | 11.6% | 11.3% | 11.0% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $388,395 | $407,815 | $428,205 | $449,616 | $472,097 | $495,701 | $520,486 | $546,511 | $573,836 | $602,528 |
| - Loan Balance | ($237,342) | ($234,066) | ($230,597) | ($226,924) | ($223,033) | ($218,913) | ($214,549) | ($209,928) | ($205,034) | ($199,850) |
| = Equity | $151,053 | $173,748 | $197,608 | $222,692 | $249,064 | $276,789 | $305,938 | $336,583 | $368,803 | $402,678 |
| Loan-to-Value Ratio | 61.1% | 57.4% | 53.9% | 50.5% | 47.2% | 44.2% | 41.2% | 38.4% | 35.7% | 33.2% |
| Potential Cash-Out Refi | $73,374 | $92,185 | $111,967 | $132,769 | $154,644 | $177,649 | $201,840 | $227,281 | $254,036 | $282,172 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $151,053 | $173,748 | $197,608 | $222,692 | $249,064 | $276,789 | $305,938 | $336,583 | $368,803 | $402,678 |
| - Closing Costs | ($27,188) | ($28,547) | ($29,974) | ($31,473) | ($33,047) | ($34,699) | ($36,434) | ($38,256) | ($40,169) | ($42,177) |
| = Proceeds After Sale | $123,865 | $145,201 | $167,634 | $191,219 | $216,017 | $242,090 | $269,503 | $298,327 | $328,634 | $360,501 |
| + Cumulative Cash Flow | $2,143 | $5,064 | $8,796 | $13,371 | $18,824 | $25,191 | $32,509 | $40,818 | $50,156 | $60,568 |
| - Approximate Cash Invested | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) | ($138,620) |
| = Net Profit | ($12,612) | $11,646 | $37,810 | $65,970 | $96,221 | $128,661 | $163,393 | $200,525 | $240,171 | $282,449 |
| Internal Rate of Return | -9.1% | 4.1% | 8.5% | 10.5% | 11.5% | 12.0% | 12.3% | 12.5% | 12.6% | 12.6% |
| Return on Investment | -9.1% | 8.4% | 27.3% | 47.6% | 69.4% | 92.8% | 117.9% | 144.7% | 173.3% | 203.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.