New Construction in 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 | $31,200 | $32,448 | $33,746 | $35,096 | $36,500 | $37,960 | $39,478 | $41,057 | $42,699 | $44,407 |
| Vacancy Losses | ($2,496) | ($2,596) | ($2,700) | ($2,808) | ($2,920) | ($3,037) | ($3,158) | ($3,285) | ($3,416) | ($3,553) |
| Operating Income | $28,704 | $29,852 | $31,046 | $32,288 | $33,580 | $34,923 | $36,320 | $37,773 | $39,283 | $40,855 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,438) | ($2,528) | ($2,621) | ($2,718) | ($2,819) | ($2,923) | ($3,031) | ($3,143) | ($3,260) | ($3,380) |
| Insurance | ($2,250) | ($2,333) | ($2,420) | ($2,509) | ($2,602) | ($2,698) | ($2,798) | ($2,902) | ($3,009) | ($3,120) |
| 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 | ($804) | ($834) | ($865) | ($897) | ($930) | ($964) | ($1,000) | ($1,037) | ($1,075) | ($1,115) |
| Maintenance | ($936) | ($971) | ($1,007) | ($1,044) | ($1,082) | ($1,122) | ($1,164) | ($1,207) | ($1,252) | ($1,298) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($6,428) | ($6,665) | ($6,912) | ($7,168) | ($7,433) | ($7,708) | ($7,993) | ($8,289) | ($8,596) | ($8,914) |
| 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 | $22,277 | $23,187 | $24,134 | $25,120 | $26,147 | $27,215 | $28,327 | $29,484 | $30,688 | $31,941 |
| - Mortgage Payments | ($16,603) | ($16,603) | ($16,603) | ($16,603) | ($16,603) | ($16,603) | ($16,603) | ($16,514) | ($16,514) | ($16,514) |
| = Cash Flow | $5,674 | $6,584 | $7,531 | $8,517 | $9,544 | $10,612 | $11,724 | $12,970 | $14,174 | $15,427 |
| + Principal Reduction | $4,741 | $4,947 | $5,161 | $5,385 | $5,618 | $5,862 | $6,116 | $9,945 | $10,222 | $10,506 |
| + Appreciation | $18,750 | $19,688 | $20,672 | $21,705 | $22,791 | $23,930 | $25,127 | $26,383 | $27,702 | $29,087 |
| = Gross Equity Income | $29,165 | $31,218 | $33,365 | $35,608 | $37,953 | $40,404 | $42,966 | $49,297 | $52,098 | $55,021 |
| Capitalization Rate | 5.7% | 5.6% | 5.6% | 5.5% | 5.5% | 5.4% | 5.4% | 5.3% | 5.3% | 5.2% |
| Cash on Cash Return | 5.5% | 6.4% | 7.3% | 8.2% | 9.2% | 10.2% | 11.3% | 12.5% | 13.7% | 14.9% |
| Return on Equity | 24.9% | 22.0% | 19.9% | 18.3% | 17.0% | 16.0% | 15.1% | 15.4% | 14.5% | 13.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $393,750 | $413,438 | $434,109 | $455,815 | $478,606 | $502,536 | $527,663 | $554,046 | $581,748 | $610,835 |
| - Loan Balance | ($276,509) | ($271,562) | ($266,400) | ($261,015) | ($255,397) | ($249,535) | ($243,419) | ($233,474) | ($223,253) | ($212,746) |
| = Equity | $117,241 | $141,876 | $167,709 | $194,800 | $223,209 | $253,001 | $284,244 | $320,572 | $358,495 | $398,089 |
| Loan-to-Value Ratio | 70.2% | 65.7% | 61.4% | 57.3% | 53.4% | 49.7% | 46.1% | 42.1% | 38.4% | 34.8% |
| Potential Cash-Out Refi | $38,491 | $59,188 | $80,887 | $103,637 | $127,488 | $152,494 | $178,711 | $209,762 | $242,146 | $275,922 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $117,241 | $141,876 | $167,709 | $194,800 | $223,209 | $253,001 | $284,244 | $320,572 | $358,495 | $398,089 |
| - Closing Costs | ($27,563) | ($28,941) | ($30,388) | ($31,907) | ($33,502) | ($35,178) | ($36,936) | ($38,783) | ($40,722) | ($42,758) |
| = Proceeds After Sale | $89,679 | $112,935 | $137,322 | $162,893 | $189,707 | $217,824 | $247,307 | $281,788 | $317,773 | $355,331 |
| + Cumulative Cash Flow | $5,674 | $12,257 | $19,789 | $28,306 | $37,850 | $48,462 | $60,186 | $73,155 | $87,329 | $102,757 |
| - Approximate Cash Invested | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) | ($103,594) |
| = Net Profit | ($8,241) | $21,599 | $53,517 | $87,605 | $123,963 | $162,692 | $203,899 | $251,350 | $301,509 | $354,493 |
| Internal Rate of Return | -8.0% | 10.2% | 15.6% | 17.7% | 18.5% | 18.8% | 18.8% | 18.8% | 18.7% | 18.6% |
| Return on Investment | -8.0% | 20.8% | 51.7% | 84.6% | 119.7% | 157.0% | 196.8% | 242.6% | 291.0% | 342.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.