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3 Cash Flowing Quads in St. Louis Metro!! [Code: 25, 29, 33]

Posted by Powered by Simply Do It on December 12, 2022
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Why THIS deal??
  • ~$852/mo. cash flow once you can refi to 5.0% 
  • Cash flows at ~$662 at today's rates of 6.375%
  • All units rented below market rent.  You get the security of a fully leased building AND the opportunity to increase rents in the future. 
  • Value-add opportunity to add an additional single bedroom unit in the basement of each building.
  • Awesome price point!  Each unit only ~$72.5K 
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After 15 Years (no mortgage)
Original purchase price $290,000
Total investment (out of pocket) $89,800
15 yrs Project house value $540,283
Value (appreciation) Gain $250,283
15 yrs cash-flow generated $158,340
Total Gain $408,624
ROI (15 yrs) 455%
ROI (annually) 30%
   
Free & Clear cash flow (yr.) $30,717
Free & Clear cash flow (m) $2,560
  • 3 Quads Available in total (4-plex buildings)
  • Seller prefers to sell all buildings at once, but will consider individual offers for single buildings
  • Each unit has 2 bedrooms, 1.5 baths
  • Value-add opportunity to add a single bedroom unit in the basement of each building.
  • With all units currently occupied, there are no immediate costs to make lease-ready.
  • Sold AS-IS
  • 33 Days on the market.  Great Negotiation Tool!
  • B rated schools
  • No Flood Zone.  No Fire Zone.  Medium noise level. 
  • No HOA charges, but owner pays utilities
  • 4,792 square foot lot


Why should you consider this house / what makes it a good investment?

  • Built: 1978
  • Size: 6,120 square foot building
  • Low Crime, Desirable Community, B-Rated Schools

What's next?

Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

Metro: St. Louis

Team: Nathan  – email directly at stl1@simplydoit.net

Code: 25, 29, 33

Property Specifications 4 Per Door
 Bedrooms 8 2
 Bathrooms 6 1.5
 Square Feet 6120 1530
 Year Built 1978  
 Garage Size 0  
 Schools Rating (on scale of A-C) B  

Purchase Assumptions My Offer Per Door
Offer used for analysis $290,000 $72,500
Suggested offer (low) $290,000 $72,500
Suggested offer (high) $295,000 $73,750
Asking $299,000 $74,750
Market Value (after improvements) $300,000 $75,000
Improvements (lower) $8,000 $2,000
Improvements (upper) $15,000 $3,750
Closing Costs $2,900 $725
Mortgage Costs $2,900 $725
Other Fees At Closing $0 $0
Total Cost  $307,300 $725

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $72,500
 Financed Amount $217,500
 Interest Rate (5/6 ARM) 6.375%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $1,357
 Cash Outlay (Total Out of Pocket) $89,800

Financial Assumptions Monthly Yearly
Rent (upper) $3,700 $4,200 $50,400
Rent (lower) $3,200 $38,400
Property Tax Rate (Approx.) 1.2%   taxes currently $2140
Property Taxes   $280 $3,360
Insurance   $150 $1,800
Repairs   $400 $4,800
Variable-Cost PM   7.5%  
Property Management Fee $278 $3,330
Leasing Fee 75% $115.6 $1,388
utilities: water, trash, sewer $400 $4,800
Vacancy Rate   4.0%  
Total Fixed Expenses $1,760 $21,120
 Total Expenses (Fixed + Mortgage) $3,117 $37,403  

Financial Assumptions Monthly Yearly
Rent (upper) $3,700 $4,200 $50,400
Rent (lower) $3,200 $38,400
Property Tax Rate (Approx.) 1.2%   taxes currently $2140
Property Taxes   $280 $3,360
Insurance   $150 $1,800
Repairs   $400 $4,800
Variable-Cost PM   7.5%  
Property Management Fee $278 $3,330
Leasing Fee 75% $115.6 $1,388
utilities: water, trash, sewer $400 $4,800
Vacancy Rate   4.0%  
Total Fixed Expenses $1,760 $21,120
 Total Expenses (Fixed + Mortgage) $3,117 $37,403  

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 6,120 FAVORABLE
 Bedrooms     3 8 FAVORABLE
 Bathrooms     2 6 FAVORABLE
 Year Built     1970 1978 FAVORABLE
 Rent/Price (%)     0.75% 1.45% FAVORABLE
 Average Cash Flow (at year 5)     $125 $662 FAVORABLE
 Average ROI (at year 5)     15% 26.5% FAVORABLE

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 8.8% 10.3% 11.8% 13.4%
 Net Cash Flow $39,733 $92,076 $158,340 $239,975
 Equity Increase $79,187 $177,768 $300,779 $454,665
 Total Gain $118,921 $269,844 $459,119 $694,640
           
 Average Cash Flow/Year $7,947 $9,208 $10,556 $11,999
 Average Cash Flow/Month $662 $767 $880 $1,000
 Average Gain/Year $23,784 $26,984 $30,608 $34,732
 Average ROI 132.4% 300.5% 511.3% 773.5%
 Annual ROI 26.5% 30.0% 34.1% 38.7%
 Projected Property Value $364,996 $444,073 $540,283 $657,337

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Disclaimer

Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.

The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info. 

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