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Check out the ROI on this find!!! [Code: 7224]

Posted by Powered by Simply Do It on April 13, 2022
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After 15 Years (no mortgage)  
Original purchase price $370,000
Total investment (out of pocket) $110,740
15 yrs Project house value $635,733
Value (appreciation) Gain $265,733
15 yrs cash-flow generated $228,450
Total Gain $494,183
ROI (15 yrs) 446%
ROI (annually) 30%
   
Free & Clear cash flow (yr.) $37,890
Free & Clear cash flow (m) $3,157
  • Offers are due Monday, April 18th at 1pm (CST)
  • 6 bedroom 3 bath single family residence (Duplex with two 3 bed/1.5 bath units)
  • Dense suburban area with similar homes
  • No (low) crime area
  • This area is popular with young professionals and will most likely be your target renter
  • Around $1000/mo. cash flow!
  • Roof replaced approx 7 years ago
  • Large Fenced-in backyard
  • Many restaurants, coffee shops and parks in the area
  • Property was updated in 2014
  • Both units will be vacant at time of closing.  No waiting to be able to increase rents to market value!
  • Private schools in the area that are often utilized for families with kids
  • 5,009 square foot lot
  • Side retaining wall is starting to lean and needs to be stabilized. Seller has an estimate for repairs of $2,500-$4,500.  

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

  • Built: 1950 (updated in 2014)
  • Size: 2,668  sq ft
  • Quiet residential street, Desirable community, C 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: Alicia – email directly at stl2@simplydoit.net

Code: 7224


Property Specifications 2 Per Door
Bedrooms  – 2 Family (3 bedroom units) 6 3
Bathrooms -2 Family (1.5 bathroom units) 3 1.5
 Square Feet  2668
 Year Built 1950 Updated 2014
Garage 2
 Schools Rating (on scale of A-F) C

Purchase Assumptions My Offer Per Door
Offer used for analysis $370,000 $185,000
Suggested offer (low) $350,000 $175,000
Suggested offer (high) $370,000 $185,000
Asking $350,000 $175,000
Market Value (after improvements) $353,000
Improvements (lower) $4,500 $2,250
Improvements (upper) $15,000 $7,500
Closing Costs $3,700
Mortgage Costs $3,700 $1,850
Other Fees At Closing $1,090 $545
Total Cost  $388,240 $1,850

Financial Assumptions Monthly Yearly
Rent (upper)-$2,000/mo each $3,700 $4,000 $48,000
Rent (lower)-$1,700/mo each $3,400 $40,800
 Property Tax Rate (Approx.) 1.4%
 Property Taxes – 2021 $410 $4,919
 Insurance $167 $2,000
 Repairs $100 $1,200
Variable-Cost PM 7.5%
Property Management Fee $278 $3,330
 Leasing Fee 75% $115.6 $1,388
HOA/Utilities  $100 $1,200
 Vacancy Rate 4.0%
 Total Fixed Expenses $1,307 $15,684
 Total Expenses (Fixed + Mortgage) $2,797 $33,560

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 10.8% 12.3% 13.8% 15.4%
 Net Cash Flow $60,057 $135,667 $228,450 $340,193
 Equity Increase $99,154 $221,302 $371,855 $557,517
 Total Gain $159,211 $356,969 $600,305 $897,710
 Average Cash Flow/Year $12,011 $13,567 $15,230 $17,010
 Average Cash Flow/Month $1,001 $1,131 $1,269 $1,417
 Average Gain/Year $31,842 $35,697 $40,020 $44,886
 Average ROI 143.8% 322.3% 542.1% 810.6%
 Annual ROI 28.8% 32.2% 36.1% 40.5%
 Projected Property Value $429,478 $522,526 $635,733 $773,466

Property Ratings Suggestions
 Item  Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools B C INSUFFICIENT
 Square Feet 1000 2,668 FAVORABLE
 Bedrooms 3 6 FAVORABLE
 Bathrooms 2 3 FAVORABLE
 Year Built 1970 1950 INSUFFICIENT
 Rent/Price (%) 0.75% 1.08% FAVORABLE
 Average Cash Flow (at year 5) $125 $1,001 FAVORABLE
 Average ROI (at year 5) 15% 28.8% 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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