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Ten Year Performance Projection

New Construction in Birmingham Metro
Alabama
4bd • 2.5ba • Built: 2026

Projected IncomeYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 ExpensesYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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.
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