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4-Unit fully leased with great cash flow [Code: 4051-4055]

Posted by Powered by Simply Do It on January 21, 2022
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  • Over $945/mo. cashflow
  • Property has been on the market 13+ days
  • 4 Giant two bedroom units
  • New Kitchens with quartz countertops and stainless appliances, new baths, Washer/Dryer in unit, Newer Windows, Lots of new plumbing, Central HVAC with newer furnaces
  • Off street parking. Right down the street from Sasha's on Shaw
  • The location is prime – located in the close to St Louis University Med school, it's new hospital, dental school, and Cardinal Glennon Children's hospital as well as Tower Grove Park, the Missouri Botanical Garden and an easy drive to every walkable neighborhood
  • Lower rent is the actual leased amount.  Added $100 per unit for the upper rent estimate
  • This building should operate at zero vacancy and has potential to be split into short-term rental mixed with long term (typically long term at top two floors and short term on bottom two floors).   Did not adjust vacancy rate on spreadsheet to be conservative
  • Ideal tenant would be double income/no children – making school rating less important
  • No (low) crime area
  • 5,700+ sq. foot lot

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

  • Built: 1916 with full remodel – New Kitchens with quartz countertops and stainless appliances, new baths, Washer/Dryer in unit, Newer Windows, Lots of new plumbing, Central HVAC with newer furnaces
  • Size: 4,576+ sq ft on over 5,700 square foot lot
  • Quiet residential street, Desirable community, Walkability score of 59
  • Turnkey property in wonderful condition

  

What's next?

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

Metro: St. Louis

Team: Alicia – email her directly: stl2@simplydoit.net

Code: 4051-4055



Snapshot in 15 Years – when mortgage is paid off    
Original purchase price $795,000
Total investment (out of pocket) $222,750
15 yrs Project house value $1,431,750
Value (appreciation) Gain $636,750
15 yrs cash-flow generated $241,598
Total Gain $878,348
ROI (15 yrs) 394%
ROI (annually) 26%
   
Free & Clear cash flow (yr.) $55,894
Free & Clear cash flow (m) $4,658

 

* Annual cash flow from the property when mortgage is paid off

* Monthly cash flow from the property when mortgage is paid off

Property Specifications 4 Per Door
 Bedrooms 2 1
 Bathrooms 1 0.3
 Square Feet 4576 1144
 Year Built 1916
 Garage Size 0
 Schools Rating (on scale of A-F) C

Purchase Assumptions My Offer Per Door
Offer used for analysis $795,000 $198,750
Suggested offer (low) $790,000
Suggested offer (high) $800,000
Asking $795,000 $198,750
Market Value (after improvements) $795,000
Improvements (lower) $6,000 $1,500
Improvements (upper) $8,000 $2,000
Closing Costs $8,000
Mortgage Costs $8,000 $2,000
Other Fees At Closing $1,000 $250
Total Cost  $819,000 $2,000

Financial Assumptions Monthly Yearly
Rent (upper) $5,780 $5,980 $71,760
Rent (lower) $5,580 $66,960
 Property Tax Rate (Approx.) 0.68
 Property Taxes $515 $6,180
 Insurance $500 $6,000
 Repairs $300 $3,600
Variable-Cost PM 7.5%
Property Management Fee $434 $5,202
 Leasing Fee 75% $180.6 $2,168
 HOA $0 $0
 Vacancy Rate 6.0%
 Total Fixed Expenses $2,250 $26,999
 Total Expenses (Fixed + Mortgage) $4,978 $59,730

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 5.1% 6.1% 7.2% 8.4%
 Net Cash Flow $56,792 $136,529 $241,598 $374,637
 Equity Increase $232,303 $513,927 $855,357 $1,269,309
 Total Gain $289,095 $650,456 $1,096,955 $1,643,946
 Average Cash Flow/Year $11,358 $13,653 $16,107 $18,732
 Average Cash Flow/Month $947 $1,138 $1,342 $1,561
 Average Gain/Year $57,819 $65,046 $73,130 $82,197
 Average ROI 129.8% 292.0% 492.5% 738.0%
 Annual ROI 26.0% 29.2% 32.8% 36.9%
 Projected Property Value $967,239 $1,176,794 $1,431,750 $1,741,943

Property Ratings Suggestions
 Item  Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools B C INSUFFICIENT
 Square Feet 1000 4,576 FAVORABLE
 Bedrooms 3 2 INSUFFICIENT
 Bathrooms 2 1 INSUFFICIENT
 Year Built 1970 1916 INSUFFICIENT
 Rent/Price (%) 0.75% 0.75% FAVORABLE
 Average Cash Flow (at year 5) $125 $947 FAVORABLE
 Average ROI (at year 5) 15% 26.0% 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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