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Amazing Cash-Flow Opportunity in St. Louis Metro! [Code: 4260]

Posted by Powered by Simply Do It on April 22, 2022
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After 15 Years (no mortgage)  
Original purchase price $540,000
Total investment (out of pocket) $159,800
15 yrs Project house value $990,519
Value (appreciation) Gain $450,519
15 yrs cash-flow generated $206,736
Total Gain $657,254
ROI (15 yrs) 411%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $46,489
Free & Clear cash flow (m) $3,874
  • 6 bedroom, 4 bath multi-family property. 4 units total (two-2 bedroom, 1 bath units & two-1 bedroom , 1 bath units)
  • 15 Days on the market already which gives some negotiation leverage
  • Over $815/mo. cash flow!!
  • 1 Unit still needs to be updated
  • This is the equivalent of purchasing 4 units at $135K each
  • Your target tenant will be a young professional
  • Amazing opportunity to own a piece of history (…and make money!)
  • Within walking distance to the Botanical Gardens, parks, bars and restaurants
  • New Furnaces and A/C condensers in 2022
  • 3 New water heaters in 2022
  • PVC sewer lateral update in 2022
  • ½ of TPO (thermoplastic polyolefin) roof in 2022.  TPO is a single-ply membrane commercial roofing system.  Very common!
  • Sold “as-is”
  • 7,405 square foot lot

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

  • Built: 1895
  • Size: 4,262  sq ft
  • Quiet residential street, Desirable community

            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: 4260


            Property Specifications 4 Per Door
             Bedrooms 6 2
             Bathrooms 4 1.0
             Square Feet 3996 999
             Year Built 1895  
             Garage Size 0  
             Schools Rating (on scale of A-F) C/C-  
            Replacement Cost ($/SqFt) $100  
            Purchase Assumptions My Offer Per Door
            Offer used for analysis $540,000 $135,000
            Suggested offer (low) $530,000 $132,500
            Suggested offer (high) $540,000 $135,000
            Asking $550,000 $137,500
            Market Value (after improvements) $550,000  
            Improvements (lower) $12,000 $3,000
            Improvements (upper) $16,000 $4,000
            Closing Costs $5,400  
            Mortgage Costs $5,400 $1,350
            Other Fees At Closing $0 $0
            Total Cost  $564,800 $1,350

            Financial Assumptions Monthly Yearly
            Rent (upper) $4,600 $4,800 $57,600
            Rent (lower) $4,400 $52,800
             Property Tax Rate (Approx.) 1.2%  
             Property Taxes ($3400/yr. in 2021) $325 $3,900
             Insurance $180 $2,160
             Repairs $200 $2,400
            Variable-Cost PM 7.5%  
            Property Management Fee $345 $4,140
             Leasing Fee 75% $143.8 $1,725
            utilities (owner pays water, trash, sewer) $300 $3,600
             Vacancy Rate 4.0%  
             Total Fixed Expenses $1,664 $19,967
             Total Expenses (Fixed + Mortgage) $3,900 $46,804

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 6.2% 7.3% 8.6% 10.0%
             Net Cash Flow $49,166 $117,416 $206,736 $319,318
             Equity Increase $150,954 $337,245 $567,316 $851,676
             Total Gain $200,120 $454,661 $774,051 $1,170,994
                       
             Average Cash Flow/Year $9,833 $11,742 $13,782 $15,966
             Average Cash Flow/Month $819 $978 $1,149 $1,330
             Average Gain/Year $40,024 $45,466 $51,603 $58,550
             Average ROI 125.2% 284.5% 484.4% 732.8%
             Annual ROI 25.0% 28.5% 32.3% 36.6%
             Projected Property Value $669,159 $814,134 $990,519 $1,205,118

            Property Ratings Suggestions
             Item      Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools     B C/C-
            #N/A
             Square Feet   1000 3,996 FAVORABLE
             Bedrooms   3 6 FAVORABLE
             Bathrooms   2 4 FAVORABLE
             Year Built   1970 1895 INSUFFICIENT
             Rent/Price (%)   0.75% 0.89% FAVORABLE
             Average Cash Flow (at year 5) $125 $819 FAVORABLE
             Average ROI (at year 5) 15% 25.0% 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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