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Ten Year Performance Projection

New Construction in Birmingham Metro Gil
Alabama
5bd • 3ba • 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($2,723)($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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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 AnalysisYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 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.
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