Diamond in the Rough with Double Potential – not for beginners. Metro Kansas City [code: 1005]
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This house requires a lot of cosmetic work and tender loving care (TLC). After walking through it and watching the video, there's plenty that needs to be addressed, but nothing major.
On the market for 100+ days
✅
Doesn't show well – needs a lot of TLC – unappealing for homeowners
✅
Good neighborhood/area with good schools
✅
There is nothing in this price point in the area
✅
Purchase + reno: ~$220k, ARV: ~$260k – aprox. $40k in equity
✅ Extra upside potential: finished the basement to ass more official sq ft & bedroom + bath counts for increase in value and rent – can be done in the future.
✅
This is a RANCH house, AKA an desirable floor plan, and has lots lots of character and attractive elements.
✅
In the map below you will see the green dot representing this house and the red marks are all properties owned by other SDI clients in the immediate area.
- Purchase (cash or mortgage) – aggressive offer of $175k (-$185k)
- Renovate – see video and more details – assume 1.5-2 months
- Lease for ~1850/mo
- If cash – refi use delayed financing.
- Projected cashflow after reno with 30% down is ~$4500/year (3X more we normally see)
✅
- The good news:
- Furnace was working well and seems to be new.
✅ - Windows looked newer.
✅ - We have not seen sign of foundation or floor cracks – inspection will reveal more.
✅ - What we anticipate will need to be done:
- Some boards on siding may need attention.
- There was some trash in the front and still in the garbage bins.
- Gutters needed some love.
- The front stoop needed some love too.
- Garage door needs to be painted
- Paint entire house + garage
- Wood floor repair
- Replace the carpeted area with floor or new carpets
- Roof – at the moment, we dont know what's the roof shape
- Deep cleaning
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2 |
| Square Feet | 1662 |
| Year Built | 1964 |
| Garage Size | 2 |
| Schools Rating (scale 3-30, 30 is best) | 20 |
| Lot size (sq ft) | 10,750 |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $175,000 |
| Suggested offer (low) | $175,000 |
| Suggested offer (high) | $185,000 |
| Asking | $209,900 |
| Market Value (after improvements) | $255,000 |
| Estimated Improvements (lower) | $30,000 |
| Estimated Improvements (upper) | $40,000 |
| Estimated Closing Costs | $1,750 |
| Estimated Mortgage Costs | $1,409 |
| Other Fees At Closing (pts, . . . ) | $1,225 |
| Total Cost (estimated) | $214,384 |
| Original listing date | 11/2/23 |
| DOM (days on market – TODAY) | 100 |
| Financing Assumptions | |||
| Down Payment (%) | 30% | ||
| Down Payment Amount | $52,500 | ||
| Financed Amount | $122,500 | ||
| Interest Rate | 6.750% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | 43.5% | $795 | |
| Cash Outlay (Total Out of Pocket) | $91,884 | ||
| Estimated Financial Assumptions | Monthly | Yearly | |
| Rent (upper)* | $1,825 | $1,900 | $22,800 |
| Rent (lower)* | $1,750 | $21,000 | |
| Property Taxes | $225 | $2,700 | |
| Insurance | $150 | $1,800 | |
| Repairs | 75 | $100 | $1,200 |
| Property Management Monthly (%) | 7.2% | ||
| Property Management Monthly ($) | $130 | $1,566 | |
| Leasing Fee | 68% | $51.3 | $616 |
| HOA or Fixed Costs | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | 39.7% | $725 | $8,695 |
| Total Expenses (Fixed + Mortgage) | $1,519 | $18,230 | |
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 5.0% | 6.5% |
| Net Cash Flow | $23,098 | $59,282 |
| Equity Increase | $62,749 | $140,468 |
| Total Gain | $85,847 | $199,750 |
| Average Cash Flow/Year | $4,620 | $5,928 |
| Average Cash Flow/Month | $385 | $494 |
| Average Gain/Year | $17,169 | $19,975 |
| Average ROI | 93.4% | 217.4% |
| Annual ROI | 18.7% | 21.7% |
| Projected Property Value | $310,246 | $377,462 |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools (scale of 3-30, 30 is the best) | 14 | 20 | FAVORABLE | ||
| Square Feet | 1,000 | 1,662 | FAVORABLE | ||
| Bedrooms | 3 | 3 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 1964 | INSUFFICIENT | ||
| Average Cash Flow (at year 5) | $125 | $385 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 18.7% | FAVORABLE | ||
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.