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Cozy Birmingham Metro Find in Highly Appreciating Neighborhood! [Code: 6521]

Posted by Powered by Simply Do It on October 7, 2022
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Why THIS deal??
  • Currently has been on the market for 120 days.  Great for price negotiation
  • ~$150/mo cash flow
  • 2 other SDI investors have highly performing properties less than 5 miles from this location
  • Price dropped by $4K on 10/6/2022
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After 15 Years (no mortgage)
Original purchase price $180,000
Total investment (out of pocket) $55,750
15 yrs Project house value $351,184
Value (appreciation) Gain $171,184
15 yrs cash-flow generated $56,481
Total Gain $227,665
ROI (15 yrs) 408.4%
ROI (annually) 27.2%
   
Free & Clear cash flow (yr.) $16,284
Free & Clear cash flow (m) $1,357

  • 3 bedroom, 2 bath Single Family Home
  • Has a bonus room in the basement, fireplace in the living room, a fenced in backyard.  Perfect for kids and pets
  • Zero HOA fees
  • Improvement costs already factored in to make lease-ready
  • Highly appreciating neighborhood
  • Attached 2-car garage
  • 0.41 acre lot


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

  • Built: 1988
  • Size: 1,138 square foot 
  • Low Crime, desirable community, B 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: Birmingham

Team: Carter – email directly at bir1@simplydoit.net

Code: 6521


Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1138
 Year Built 1988
 Garage Size 2
 Schools Rating (on scale of A-C) B

Purchase Assumptions My Offer
Offer used for analysis $180,000
Suggested offer (low) $175,000
Suggested offer (high) $180,000
Asking $190,000
Market Value (after improvements) $195,000
Improvements (lower) $5,000
Improvements (upper) $7,500
Closing Costs $1,800
Mortgage Costs $1,800
Other Fees At Closing $900
Total Cost  $190,750

Financial Assumptions Monthly Yearly
Rent (upper) $1,325 $1,375 $16,500
Rent (lower) $1,275 $15,300
Property Tax Rate (Approx.) 1.0%  
Property Taxes   $80 $960
Insurance   $90 $1,080
Repairs   $70 $840
Variable-Cost PM   8.0%  
Property Management Fee $106 $1,272
Leasing Fee 60% $33.1 $398
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $428 $5,135
 Total Expenses (Fixed + Mortgage) $1,226 $14,718

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 3.3% 4.9% 6.8% 8.8%
 Net Cash Flow $9,240 $27,584 $56,481 $97,612
 Equity Increase $51,820 $116,052 $195,789 $294,932
 Total Gain $61,060 $143,636 $252,270 $392,544
           
 Average Cash Flow/Year $1,848 $2,758 $3,765 $4,881
 Average Cash Flow/Month $154 $230 $314 $407
 Average Gain/Year $12,212 $14,364 $16,818 $19,627
 Average ROI 109.5% 257.6% 452.5% 704.1%
 Annual ROI 21.9% 25.8% 30.2% 35.2%
 Projected Property Value $237,247 $288,648 $351,184 $427,269

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1,000 1,138 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 1988 FAVORABLE
 Rent/Price (%)     0.75% 0.76% FAVORABLE
 Average Cash Flow (at year 5)     $125 $154 FAVORABLE
 Average ROI (at year 5)     15% 21.9% 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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