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3rd Buyer Lease back in Nashville Metro! [Code: Spruce]

Posted by Powered by Simply Do It on November 22, 2022
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Why THIS deal??
  • ~$690/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$98 at today's rates of 7.5%
  • Brand new MODEL HOME with builder contracted lease-back terms
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After 15 Years (no mortgage)
Original purchase price $409,990
Total investment (out of pocket) $114,247
15 yrs Project house value $810,425
Value (appreciation) Gain $400,435
15 yrs cash-flow generated $61,260
Total Gain $461,695
ROI (15 yrs) 404%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $34,202
Free & Clear cash flow (m) $2,850
  • 3 bedroom, 2 bath Single Family Home 
  • Great location with quick access to major commuting routes, shopping and schools
  • Guaranteed rent amount while builder is leasing back
  • There are 4 separate models being offered currently
  • Builder is responsible for all maintenance and expenses while they are leasing the property
  • A rated schools
  • No HOA charges
  • The homes typically receive sod, special paint, feature upgrades not typically found in neighborhood homes. These are the most impressive homes in the subdivision – because they are the “showrooms” for the builder to sell all the lots and the available upgrades to those homes. The garages are sheet rocked, the highest finish & trim levels are installed, and the higher grade flooring is installed. The homes are maintained in showroom condition – as they must be flawless to impress buyers.
  • Attached 2-car garage
  • BRAND NEW model home with all upgrades AND builders lease back for 2-3 years


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

  • Built: 2022
  • Size: 1,296 square foot home
  • Low Crime, Desirable Community, A-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: Nashville

Team: Fred  – email directly at nash1@simplydoit.net

Code: Spruce

Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1296
 Year Built 2022
 Garage Size 2
 Schools Rating (on scale of A-C) A

Purchase Assumptions My Offer Per Door
Offer used for analysis $409,990  
Suggested offer (low) $409,990  
Suggested offer (high) $409,990  
Asking $409,990  
Market Value (after improvements) $450,000  
Improvements (lower) $400  
Improvements (upper) $700  
Closing Costs $4,100  
Mortgage Costs $4,100  
Other Fees At Closing $3,000 points
Total Cost  $421,740  

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $102,498
 Financed Amount $307,493
 Interest Rate 7.500%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $2,150
 Cash Outlay (Total Out of Pocket) $114,247

Financial Assumptions Monthly Yearly
Rent (upper) $3,000 $3,000 $36,000
Rent (lower) $3,000 $36,000
Property Tax Rate (Approx.) 0.6%  
Property Taxes   $205 $2,460
Insurance   $152 $1,824
Repairs   $70 $840
Variable-Cost PM   8.0%  
Property Management Fee $240 $2,880
Leasing Fee 50% $62.5 $750
HOA     $0
Vacancy Rate   4.0%  
Total Fixed Expenses $840 $10,079
 Total Expenses (Fixed + Mortgage) $2,990 $35,879

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 1.0% 2.3% 3.6% 5.0%
 Net Cash Flow $5,893 $25,826 $61,260 $113,809
 Equity Increase $114,045 $256,714 $435,985 $662,368
 Total Gain $119,938 $282,540 $497,245 $776,177
           
 Average Cash Flow/Year $1,179 $2,583 $4,084 $5,690
 Average Cash Flow/Month $98 $215 $340 $474
 Average Gain/Year $23,988 $28,254 $33,150 $38,809
 Average ROI 105.0% 247.3% 435.2% 679.4%
 Annual ROI 21.0% 24.7% 29.0% 34.0%
 Projected Property Value $547,494 $666,110 $810,425 $986,005
Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A FAVORABLE
 Square Feet     1000 1,296 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 2022 FAVORABLE
 Rent/Price (%)     0.75% 0.73% INSUFFICIENT
 Average Cash Flow (at year 5)     $125 $98 INSUFFICIENT
 Average ROI (at year 5)     15% 21.0% FAVORABLE
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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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