New Construction in Birmingham Metro Gil
Alabama
5bd • 3ba • 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 | ($2,723) | ($2,824) | ($2,928) | ($3,036) | ($3,149) | ($3,265) | ($3,386) | ($3,511) | ($3,641) | ($3,776) |
| Insurance | ($2,513) | ($2,606) | ($2,703) | ($2,803) | ($2,907) | ($3,014) | ($3,126) | ($3,241) | ($3,361) | ($3,486) |
| 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 | ($6,976) | ($7,234) | ($7,502) | ($7,780) | ($8,067) | ($8,366) | ($8,676) | ($8,996) | ($9,329) | ($9,675) |
| 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 | $21,728 | $22,618 | $23,544 | $24,508 | $25,512 | $26,557 | $27,644 | $28,776 | $29,954 | $31,180 |
| - Mortgage Payments | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) | ($17,960) |
| = Cash Flow | $3,767 | $4,658 | $5,584 | $6,548 | $7,552 | $8,597 | $9,684 | $10,816 | $11,994 | $13,220 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $20,945 | $21,992 | $23,092 | $24,246 | $25,459 | $26,732 | $28,068 | $29,472 | $30,945 | $32,493 |
| = Gross Equity Income | $24,712 | $26,650 | $28,676 | $30,795 | $33,011 | $35,328 | $37,752 | $40,287 | $42,939 | $45,712 |
| Capitalization Rate | 4.9% | 4.9% | 4.9% | 4.8% | 4.8% | 4.7% | 4.7% | 4.6% | 4.6% | 4.6% |
| Cash on Cash Return | 2.8% | 3.4% | 4.1% | 4.8% | 5.5% | 6.3% | 7.1% | 7.9% | 8.8% | 9.7% |
| Return on Equity | 16.9% | 15.8% | 15.0% | 14.3% | 13.7% | 13.2% | 12.7% | 12.4% | 12.0% | 11.7% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $439,845 | $461,837 | $484,929 | $509,176 | $534,634 | $561,366 | $589,434 | $618,906 | $649,851 | $682,344 |
| - Loan Balance | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) | ($293,230) |
| = Equity | $146,615 | $168,607 | $191,699 | $215,946 | $241,404 | $268,136 | $296,204 | $325,676 | $356,621 | $389,114 |
| Loan-to-Value Ratio | 66.7% | 63.5% | 60.5% | 57.6% | 54.8% | 52.2% | 49.7% | 47.4% | 45.1% | 43.0% |
| Potential Cash-Out Refi | $58,646 | $76,240 | $94,713 | $114,110 | $134,477 | $155,863 | $178,317 | $201,895 | $226,651 | $252,645 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $146,615 | $168,607 | $191,699 | $215,946 | $241,404 | $268,136 | $296,204 | $325,676 | $356,621 | $389,114 |
| - Closing Costs | ($30,789) | ($32,329) | ($33,945) | ($35,642) | ($37,424) | ($39,296) | ($41,260) | ($43,323) | ($45,490) | ($47,764) |
| = Proceeds After Sale | $115,826 | $136,279 | $157,754 | $180,303 | $203,980 | $228,840 | $254,944 | $282,353 | $311,132 | $341,350 |
| + Cumulative Cash Flow | $3,767 | $8,425 | $14,009 | $20,557 | $28,109 | $36,706 | $46,389 | $57,205 | $69,199 | $82,419 |
| - Approximate Cash Invested | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) | ($136,352) |
| = Net Profit | ($16,759) | $8,352 | $35,411 | $64,508 | $95,737 | $129,194 | $164,981 | $203,206 | $243,979 | $287,417 |
| Internal Rate of Return | -12.3% | 3.1% | 8.2% | 10.6% | 11.8% | 12.5% | 12.9% | 13.1% | 13.3% | 13.3% |
| Return on Investment | -12.3% | 6.1% | 26.0% | 47.3% | 70.2% | 94.8% | 121.0% | 149.0% | 178.9% | 210.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.