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 | ($2,696) | ($2,796) | ($2,899) | ($3,007) | ($3,118) | ($3,233) | ($3,353) | ($3,477) | ($3,606) | ($3,739) |
| Insurance | ($2,489) | ($2,581) | ($2,676) | ($2,775) | ($2,878) | ($2,985) | ($3,095) | ($3,210) | ($3,328) | ($3,451) |
| 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 | ($6,925) | ($7,181) | ($7,447) | ($7,722) | ($8,008) | ($8,305) | ($8,612) | ($8,930) | ($9,261) | ($9,603) |
| 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 | $21,779 | $22,671 | $23,599 | $24,566 | $25,571 | $26,618 | $27,708 | $28,842 | $30,023 | $31,251 |
| - Mortgage Payments | ($18,365) | ($18,365) | ($18,365) | ($18,365) | ($18,365) | ($18,365) | ($18,365) | ($18,267) | ($18,267) | ($18,267) |
| = Cash Flow | $3,414 | $4,306 | $5,234 | $6,200 | $7,206 | $8,253 | $9,343 | $10,575 | $11,756 | $12,985 |
| + Principal Reduction | $5,245 | $5,472 | $5,709 | $5,957 | $6,215 | $6,484 | $6,765 | $11,000 | $11,306 | $11,621 |
| + Appreciation | $20,740 | $21,777 | $22,866 | $24,009 | $25,210 | $26,470 | $27,794 | $29,183 | $30,642 | $32,175 |
| = Gross Equity Income | $29,399 | $31,555 | $33,809 | $36,166 | $38,631 | $41,207 | $43,902 | $50,759 | $53,705 | $56,781 |
| Capitalization Rate | 5.0% | 5.0% | 4.9% | 4.9% | 4.8% | 4.8% | 4.7% | 4.7% | 4.7% | 4.6% |
| Cash on Cash Return | 3.0% | 3.8% | 4.6% | 5.4% | 6.3% | 7.2% | 8.2% | 9.2% | 10.3% | 11.3% |
| Return on Equity | 22.7% | 20.1% | 18.2% | 16.8% | 15.6% | 14.7% | 14.0% | 14.3% | 13.5% | 12.9% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $435,540 | $457,317 | $480,183 | $504,192 | $529,402 | $555,872 | $583,665 | $612,849 | $643,491 | $675,665 |
| - Loan Balance | ($305,855) | ($300,383) | ($294,674) | ($288,717) | ($282,502) | ($276,018) | ($269,253) | ($258,253) | ($246,946) | ($235,325) |
| = Equity | $129,685 | $156,934 | $185,509 | $215,475 | $246,899 | $279,853 | $314,412 | $354,596 | $396,544 | $440,340 |
| 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 | $42,577 | $65,470 | $89,472 | $114,636 | $141,019 | $168,679 | $197,679 | $232,026 | $267,846 | $305,207 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $129,685 | $156,934 | $185,509 | $215,475 | $246,899 | $279,853 | $314,412 | $354,596 | $396,544 | $440,340 |
| - Closing Costs | ($30,488) | ($32,012) | ($33,613) | ($35,293) | ($37,058) | ($38,911) | ($40,857) | ($42,899) | ($45,044) | ($47,297) |
| = Proceeds After Sale | $99,197 | $124,922 | $151,896 | $180,181 | $209,841 | $240,942 | $273,556 | $311,696 | $351,500 | $393,044 |
| + Cumulative Cash Flow | $3,414 | $7,720 | $12,954 | $19,154 | $26,361 | $34,614 | $43,956 | $54,532 | $66,288 | $79,272 |
| - Approximate Cash Invested | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) | ($114,589) |
| = Net Profit | ($11,978) | $18,053 | $50,261 | $84,747 | $121,613 | $160,968 | $202,924 | $251,640 | $303,199 | $357,728 |
| Internal Rate of Return | -10.5% | 7.7% | 13.2% | 15.4% | 16.4% | 16.7% | 16.8% | 16.9% | 16.9% | 16.8% |
| Return on Investment | -10.5% | 15.8% | 43.9% | 74.0% | 106.1% | 140.5% | 177.1% | 219.6% | 264.6% | 312.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.