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Diamond in the Rough Opportunity in KC Metro…Don’t Miss This One!! [Code: 3205]

Posted by Powered by Simply Do It on October 10, 2022
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Why THIS deal??
  • Been on the market for 18 days.  Great for price negotiation
  • If the suggested price is accepted, the investor has an instant $35K of equity!
  • ~$415/mo. cash flow 
  • Price reduced already by $5K on 10/10/22
  • Value-add suggested offer price because the house is in need of cosmetic updating.  Costs of renovations are already included in the improvements cost on analysis. 
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After 15 Years (no mortgage)
Original purchase price$195,000
Total investment (out of pocket)$88,625
15 yrs Project house value$477,250
Value (appreciation) Gain$282,250
15 yrs cash-flow generated$100,220
Total Gain$382,470
ROI (15 yrs)431.6%
ROI (annually)28.8%
  
Free & Clear cash flow (yr.)$19,528
Free & Clear cash flow (m)$1,627

  • 3 bedroom, 2.5 bath Single Family Home
  • Great school district
  • Zero HOA fees
  • House is being sold AS-IS.  Inspections are welcome, but the seller will not be doing any repairs.
  • Located on a cul-de-sac street
  • Fenced-in backyard.  Perfect for kids and pets! 
  • Diamond in the Rough Opportunity here! 
  • Highly appreciating neighborhood
  • Attached 2-car garage
  • 7,567 square foot lot


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

  • Built: 1987
  • Size: 1,775 square foot house
  • 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: Kansas City

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

Code: 3205


Property Specifications1
 Bedrooms3
 Bathrooms2.5
 Square Feet1775
 Year Built1987
 Garage Size2
 Schools Rating (on scale of A-C)A

Purchase AssumptionsMy Offer
Offer used for analysis$195,000
Suggested offer (low)$195,000
Suggested offer (high)$225,000
Asking$229,900
Market Value (after improvements)$265,000
Improvements (lower)$30,000
Improvements (upper)$40,000
Closing Costs$1,950
Mortgage Costs$1,950
Other Fees At Closing$975
Total Cost $234,875

Financing Assumptions 
 Down Payment (%)25%
 Down Payment Amount$48,750
 Financed Amount$146,250
 Interest Rate  15/30 ARM5.875%
 Mortgage Term (Years) – 15 year fixed period30
 Monthly Mortgage Payment$865
 Cash Outlay (Total Out of Pocket)$88,625

Purchase AssumptionsMy Offer
Offer used for analysis$195,000
Suggested offer (low)$195,000
Suggested offer (high)$225,000
Asking$229,900
Market Value (after improvements)$265,000
Improvements (lower)$30,000
Improvements (upper)$40,000
Closing Costs$1,950
Mortgage Costs$1,950
Other Fees At Closing$975
Total Cost $234,875

Financial AssumptionsMonthlyYearly
Rent (upper)$1,895$1,995$23,940
Rent (lower)$1,795$21,540
Property Tax Rate (Approx.)1.4% 
Property Taxes $228$2,730
Insurance $100$1,200
Repairs $75$900
Variable-Cost PM 7.2% 
Property Management Fee$135$1,626
Leasing Fee68%$53.3$640
HOA $0$0
Vacancy Rate 4.0% 
Total Fixed Expenses$662$7,940
 Total Expenses (Fixed + Mortgage)$1,527$18,322

Financial Analysis / Deal Attractiveness    
Years:5101520
 Cap Rate5.7%6.6%7.5%8.6%
 Net Cash Flow$25,112$58,241$100,220$151,970
 Equity Increase$67,783$151,535$255,153$383,529
 Total Gain$92,895$209,775$355,373$535,499
      
 Average Cash Flow/Year$5,022$5,824$6,681$7,599
 Average Cash Flow/Month$419$485$557$633
 Average Gain/Year$18,579$20,978$23,692$26,775
 Average ROI104.8%236.7%401.0%604.2%
 Annual ROI21.0%23.7%26.7%30.2%
 Projected Property Value$322,413$392,265$477,250$580,648

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
INSUFFICIENT
 Schools  BAFAVORABLE
 Square Feet  1,0001,775FAVORABLE
 Bedrooms  33FAVORABLE
 Bathrooms  22.5FAVORABLE
 Year Built  19701987FAVORABLE
 Rent/Price (%)  0.75%1.02%FAVORABLE
 Average Cash Flow (at year 5)  $125$419FAVORABLE
 Average ROI (at year 5)  15%21.0%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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