New Construction in Birmingham Metro 6pts credit from builder DSCR Lender
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 | $25,200 | $26,208 | $27,256 | $28,347 | $29,480 | $30,660 | $31,886 | $33,161 | $34,488 | $35,867 |
| Vacancy Losses | ($2,016) | ($2,097) | ($2,181) | ($2,268) | ($2,358) | ($2,453) | ($2,551) | ($2,653) | ($2,759) | ($2,869) |
| Operating Income | $23,184 | $24,111 | $25,076 | $26,079 | $27,122 | $28,207 | $29,335 | $30,509 | $31,729 | $32,998 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($2,079) | ($2,156) | ($2,236) | ($2,319) | ($2,405) | ($2,494) | ($2,586) | ($2,682) | ($2,781) | ($2,884) |
| Insurance | ($1,919) | ($1,990) | ($2,064) | ($2,140) | ($2,220) | ($2,302) | ($2,387) | ($2,475) | ($2,567) | ($2,662) |
| 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 | ($552) | ($572) | ($594) | ($616) | ($638) | ($662) | ($686) | ($712) | ($738) | ($766) |
| Maintenance | ($756) | ($784) | ($813) | ($843) | ($874) | ($907) | ($940) | ($975) | ($1,011) | ($1,048) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($5,307) | ($5,503) | ($5,707) | ($5,918) | ($6,137) | ($6,364) | ($6,599) | ($6,844) | ($7,097) | ($7,359) |
| 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 | $17,877 | $18,608 | $19,369 | $20,161 | $20,985 | $21,843 | $22,736 | $23,665 | $24,632 | $25,639 |
| - Mortgage Payments | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) | ($18,198) |
| = Cash Flow | ($321) | $410 | $1,171 | $1,963 | $2,787 | $3,645 | $4,538 | $5,467 | $6,434 | $7,441 |
| + Principal Reduction | $2,682 | $2,861 | $3,053 | $3,257 | $3,476 | $3,708 | $3,957 | $4,222 | $4,504 | $4,806 |
| + Appreciation | $15,995 | $16,795 | $17,634 | $18,516 | $19,442 | $20,414 | $21,435 | $22,507 | $23,632 | $24,813 |
| = Gross Equity Income | $18,356 | $20,066 | $21,859 | $23,737 | $25,705 | $27,768 | $29,929 | $32,195 | $34,571 | $37,060 |
| Capitalization Rate | 5.3% | 5.3% | 5.2% | 5.2% | 5.1% | 5.1% | 5.1% | 5.0% | 5.0% | 4.9% |
| Cash on Cash Return | -0.4% | 0.5% | 1.3% | 2.2% | 3.2% | 4.1% | 5.1% | 6.2% | 7.3% | 8.4% |
| Return on Equity | 18.6% | 17.0% | 15.7% | 14.8% | 14.0% | 13.4% | 12.8% | 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 | $335,895 | $352,690 | $370,324 | $388,840 | $408,282 | $428,697 | $450,131 | $472,638 | $496,270 | $521,083 |
| - Loan Balance | ($237,243) | ($234,382) | ($231,329) | ($228,072) | ($224,596) | ($220,888) | ($216,931) | ($212,709) | ($208,205) | ($203,399) |
| = Equity | $98,652 | $118,308 | $138,995 | $160,769 | $183,686 | $207,809 | $233,200 | $259,929 | $288,065 | $317,684 |
| 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 | $31,473 | $47,770 | $64,930 | $83,001 | $102,030 | $122,070 | $143,174 | $165,401 | $188,811 | $213,468 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $98,652 | $118,308 | $138,995 | $160,769 | $183,686 | $207,809 | $233,200 | $259,929 | $288,065 | $317,684 |
| - Closing Costs | ($23,513) | ($24,688) | ($25,923) | ($27,219) | ($28,580) | ($30,009) | ($31,509) | ($33,085) | ($34,739) | ($36,476) |
| = Proceeds After Sale | $75,139 | $93,620 | $113,073 | $133,550 | $155,107 | $177,800 | $201,691 | $226,844 | $253,326 | $281,209 |
| + Cumulative Cash Flow | ($321) | $90 | $1,261 | $3,224 | $6,011 | $9,656 | $14,194 | $19,662 | $26,096 | $33,537 |
| - Approximate Cash Invested | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) | ($88,372) |
| = Net Profit | ($13,554) | $5,337 | $25,961 | $48,402 | $72,746 | $99,084 | $127,513 | $158,133 | $191,050 | $226,373 |
| Internal Rate of Return | -15.3% | 3.0% | 9.0% | 11.6% | 12.8% | 13.5% | 13.8% | 14.0% | 14.0% | 14.0% |
| Return on Investment | -15.3% | 6.0% | 29.4% | 54.8% | 82.3% | 112.1% | 144.3% | 178.9% | 216.2% | 256.2% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.