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$40K of Instant Equity With This No-Brainer [Code: 29]

Posted by Powered by Simply Do It on October 20, 2022
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Why THIS deal??
  • Property is already rented until August of 2023.  Great for investors! 
  • ~$200/mo cash flow from day ONE
  • Fully finished basement is NOT included in the square footage measurements
  • Suggest offer provides instant $40K equity to the investor!
  • Priced to appeal to investors due to being currently leased
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After 15 Years (no mortgage)
Original purchase price $225,000
Total investment (out of pocket) $72,250
15 yrs Project house value $486,255
Value (appreciation) Gain $261,255
15 yrs cash-flow generated $57,991
Total Gain $319,246
ROI (15 yrs) 442%
ROI (annually) 29%
   
Free & Clear cash flow (yr.) $18,320
Free & Clear cash flow (m) $1,527

  • 3 bedroom, 2 bath Single Family Home
  • Fully finished basement is NOT included in the square footage measurements
  • Great School District
  • Fully fenced back yard.  Perfect for kids and pets! 
  • Some cosmetic updates could be made once tenant leaves to maximize rent moving forward
  • Quiet residential street in safe subdivision
  • Only been on the market for 6 days
  • Located in the middle of a cul-de-sac street
  • No HOA fees
  • Attached 2-car garage
  • Highly appreciating neighborhood
  • 0.24 acre lot


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

  • Built: 1970
  • Size: 1,040 square foot 
  • 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: St. Louis

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

Code: 29


Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1040
 Year Built 1970
 Garage Size 1
 Schools Rating (on scale of A-C) A

Purchase Assumptions My Offer
Offer used for analysis $225,000
Suggested offer (low) $225,000
Suggested offer (high) $230,000
Asking $230,000
Market Value (after improvements) $270,000
Improvements (lower) $5,000
Improvements (upper) $15,000
Closing Costs $2,250
Mortgage Costs $2,250
Other Fees At Closing $1,500
Total Cost  $241,000

Financial Assumptions Monthly Yearly
Rent (upper) $1,780 $1,780 $21,360
Rent (lower) $1,780 $21,360
Property Tax Rate (Approx.) 1.2%  
Property Taxes   $158 $1,896
Insurance   $110 $1,320
Repairs   $100 $1,200
Variable-Cost PM   7.5%  
Property Management Fee $134 $1,602
Leasing Fee 75% $55.6 $668
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $623 $7,476
 Total Expenses (Fixed + Mortgage) $1,635 $19,617

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 3.2% 4.2% 5.4% 6.5%
 Net Cash Flow $11,549 $30,619 $57,991 $94,531
 Equity Increase $70,217 $157,196 $265,109 $399,221
 Total Gain $81,766 $187,815 $323,101 $493,753
           
 Average Cash Flow/Year $2,310 $3,062 $3,866 $4,727
 Average Cash Flow/Month $192 $255 $322 $394
 Average Gain/Year $16,353 $18,781 $21,540 $24,688
 Average ROI 113.2% 260.0% 447.2% 683.4%
 Annual ROI 22.6% 26.0% 29.8% 34.2%
 Projected Property Value $328,496 $399,666 $486,255 $591,603

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A FAVORABLE
 Square Feet     1000 1,040 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 1970 FAVORABLE
 Rent/Price (%)     0.75% 0.79% FAVORABLE
 Average Cash Flow (at year 5)     $125 $192 FAVORABLE
 Average ROI (at year 5)     15% 22.6% 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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