New Construction in Birmingham Metro DSCR using 6pts from builder
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 | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) | ($23,596) |
| = Cash Flow | ($1,817) | ($925) | $3 | $969 | $1,975 | $3,022 | $4,112 | $5,246 | $6,426 | $7,655 |
| + Principal Reduction | $3,477 | $3,710 | $3,959 | $4,224 | $4,507 | $4,808 | $5,130 | $5,474 | $5,841 | $6,232 |
| + Appreciation | $20,740 | $21,777 | $22,866 | $24,009 | $25,210 | $26,470 | $27,794 | $29,183 | $30,642 | $32,175 |
| = Gross Equity Income | $22,400 | $24,562 | $26,827 | $29,202 | $31,691 | $34,300 | $37,036 | $39,903 | $42,909 | $46,061 |
| 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 | -1.6% | -0.8% | 0.0% | 0.8% | 1.7% | 2.6% | 3.6% | 4.6% | 5.6% | 6.7% |
| Return on Equity | 17.5% | 16.0% | 14.9% | 14.0% | 13.3% | 12.7% | 12.2% | 11.8% | 11.5% | 11.2% |
| 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 | ($307,623) | ($303,913) | ($299,954) | ($295,731) | ($291,224) | ($286,416) | ($281,285) | ($275,811) | ($269,971) | ($263,739) |
| = Equity | $127,917 | $153,404 | $180,229 | $208,461 | $238,178 | $269,456 | $302,380 | $337,037 | $373,520 | $411,926 |
| Loan-to-Value Ratio | 70.6% | 66.5% | 62.5% | 58.7% | 55.0% | 51.5% | 48.2% | 45.0% | 42.0% | 39.0% |
| Potential Cash-Out Refi | $40,809 | $61,941 | $84,192 | $107,623 | $132,297 | $158,282 | $185,647 | $214,467 | $244,822 | $276,793 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $127,917 | $153,404 | $180,229 | $208,461 | $238,178 | $269,456 | $302,380 | $337,037 | $373,520 | $411,926 |
| - 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 | $97,429 | $121,392 | $146,616 | $173,168 | $201,119 | $230,545 | $261,523 | $294,138 | $328,476 | $364,630 |
| + Cumulative Cash Flow | ($1,817) | ($2,743) | ($2,740) | ($1,770) | $205 | $3,227 | $7,338 | $12,584 | $19,010 | $26,665 |
| - 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 | ($18,976) | $4,061 | $29,288 | $56,809 | $86,736 | $119,183 | $154,273 | $192,133 | $232,898 | $276,707 |
| Internal Rate of Return | -16.6% | 1.7% | 7.8% | 10.5% | 11.8% | 12.5% | 12.9% | 13.1% | 13.2% | 13.2% |
| Return on Investment | -16.6% | 3.5% | 25.6% | 49.6% | 75.7% | 104.0% | 134.6% | 167.7% | 203.2% | 241.5% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.