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ANOTHER 4-plex cash-cow. Check it out! [Code 401]

Posted by Powered by Simply Do It on July 20, 2022
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After 15 Years (no mortgage)  
Original purchase price $575,000
Total investment (out of pocket) $161,250
15 yrs Project house value $1,035,543
Value (appreciation) Gain $460,543
15 yrs cash-flow generated $189,679
Total Gain $650,221
ROI (15 yrs) 403%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $48,101
Free & Clear cash flow (m) $4,008
  • Large fully remodeled two story 4-plex (2 bedroom, 1.5 bath units)
  • Price recently dropped by $74K!
  • All units are occupied and management is in place
  • All 4 units have been remodeled and updated.  Turnkey property with very little (if any) make-ready necessary
  • Must agree to a 1031 exchange at no cost to the buyer.  Just an acknowledgement that the seller will be doing a 1031 exchange. 
  • LVP floors and upgrades throughout 
  • Beautiful kitchen with new granite countertops, all new cabinets, tile backsplash, all new stainless steel appliances (Refrigerator, stove, dishwasher & OTR microwave)
  • ~ $715/mo. cash flow 
  • No HOA costs
  • A rated schools
  • Most new HVAC or they were already newer within the last 5 years
  • These units have all new vinyl windows, New sliding glass doors. Roof is only about 3 years old
  • 1 car attached garages for each unit with new garage door and openers  Garage area pulls around into a full unfinished basement

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

  • Built: 1982
  • Size: 6552 square foot building
  • Low Crime, Desirable community, Turnkey property

            What's next?

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

            Metro: Kansas City

            Team: Elizabeth – email directly at kc1@simplydoit.net

            Code: 401

            Property Specifications 4 Per Door
             Bedrooms 8 2
             Bathrooms 6 1.5
             Square Feet 6552 1638
             Year Built 1982  
             Garage Size 4 1
             Schools Rating (on scale of A-F) A  
            Purchase Assumptions My Offer Per Door
            Offer used for analysis $575,000 $143,750
            Suggested offer (low) $550,000 $137,500
            Suggested offer (high) $575,000 $143,750
            Asking $575,000 $143,750
            Market Value (after improvements) $575,000 $143,750
            Improvements (lower) $4,000 $1,000
            Improvements (upper) $8,000 $2,000
            Closing Costs $5,750  
            Mortgage Costs $5,750 $1,438
            Other Fees At Closing $0 $0
            Total Cost  $592,500 $1,438
            Financial Assumptions Monthly Yearly
            Rent (upper) $4,890 $5,180 $62,160
            Rent (lower) $4,600 $55,200
             Property Tax Rate (Approx.) 1.4%  
             Property Taxes $533 $6,400
             Insurance $350 $4,200
             Repairs $300 $3,600
            Variable-Cost PM 7.2%  
            Property Management Fee $350 $4,196
             Leasing Fee 68% $137.5 $1,650
             HOA $0 $0
             Vacancy Rate 4.0%  
             Total Fixed Expenses $1,852 $22,225
             Total Expenses (Fixed + Mortgage) $4,301 $51,608

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 5.3% 6.5% 7.8% 9.2%
             Net Cash Flow $42,796 $105,337 $189,679 $298,090
             Equity Increase $157,089 $351,432 $592,118 $890,524
             Total Gain $199,885 $456,770 $781,797 $1,188,614
                       
             Average Cash Flow/Year $8,559 $10,534 $12,645 $14,905
             Average Cash Flow/Month $713 $878 $1,054 $1,242
             Average Gain/Year $39,977 $45,677 $52,120 $59,431
             Average ROI 124.0% 283.3% 484.8% 737.1%
             Annual ROI 24.8% 28.3% 32.3% 36.9%
             Projected Property Value $699,575 $851,140 $1,035,543 $1,259,896
            Property Ratings Suggestions
             Item      Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools     B A FAVORABLE
             Square Feet   1000 6,552 FAVORABLE
             Bedrooms   3 8 FAVORABLE
             Bathrooms   2 6 FAVORABLE
             Year Built   1970 1982 FAVORABLE
             Rent/Price (%)   0.75% 0.90% FAVORABLE
             Average Cash Flow (at year 5) $125 $713 FAVORABLE
             Average ROI (at year 5) 15% 24.8% 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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