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Downtown Living at its Finest in KC! [Code 905]

Posted by Powered by Simply Do It on January 24, 2023
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Why THIS deal??
  • ~$681/mo. cash flow once you can refi to 5.0% 
  • Cash flows at ~$337 at today's rates of 6.275%
  • Has been on the market for 5 days. New listing
  • Built in 1992. Many multi-units are much older in KC
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After 15 Years (no mortgage)
Original purchase price $580,000
Total investment (out of pocket) $168,600
15 yrs Project house value $1,053,552
Value (appreciation) Gain $473,552
15 yrs cash-flow generated $119,125
Total Gain $592,677
ROI (15 yrs) 352%
ROI (annually) 23%
   
Free & Clear cash flow (yr.) $45,874
Free & Clear cash flow (m) $3,823
  • Fourplex.  Each unit is 1 bedroom/1 bath and around 700 square feet
  • Your target tenant will be a young professional with no kids
  • We are awaiting interior pictures and seller's disclosures
  • Walking distance to EVERYTHING downtown KC has to offer
  • NO short term rental permitted
  • Current Rents: Unit A $1,138, Unit B $1,100, Unit C $1,105 and Unit D $1,163
  • Units A-C have deposits of $400 each and Unit D is $700
  • Fully occupied on month-to-month basis
  • Each unit comes with its own gated and secured parking space
  • Full size washer/dryer in each unit
  • Selling AS-IS


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

  • Built: 1992
  • Size: 2800 square foot property
  • Desirable Downtown Location

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: Meredith  – email directly at kc1@simplydoit.net

Code: 905

Property Specifications 4 Per Door
 Bedrooms 4 1
 Bathrooms 4 1.0
 Square Feet 2800 700
 Year Built 1992
Secured spot 4 1
 Schools Rating (on scale of A-C) C  

Purchase Assumptions My Offer Per Door
Offer used for analysis $580,000 $145,000
Suggested offer (low) $580,000 $145,000
Suggested offer (high) $585,000 $146,250
Asking $580,000 $145,000
Market Value (after improvements) $585,000  
Improvements (lower) $8,000 $2,000
Improvements (upper) $16,000 $4,000
Closing Costs $5,800 $1,450
Mortgage Costs $5,800 $1,450
Other Fees At Closing $0  
Total Cost  $603,600 $1,450

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $145,000
 Financed Amount $435,000
 Interest Rate  (5/6 ARM) Multi-family 6.250%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $2,678
 Cash Outlay (Total Out of Pocket) $168,600

Financial Assumptions Monthly Yearly
Rent (upper) $4,750 $5,000 $60,000
Rent (lower) $4,500 $54,000
Property Tax Rate (Approx.) 1.4%  
Property Taxes   $250 $3,000
Insurance   $150 $1,800
Repairs   $300 $3,600
Variable-Cost PM   7.0%  
Property Management Fee $333 $3,990
Leasing Fee 68% $133.6 $1,603
HOA/utilities   $510 $6,120
Vacancy Rate   4.0%  
Total Fixed Expenses $1,853 $22,234
 Total Expenses (Fixed + Mortgage) $4,531 $54,374

Financial Analysis / Deal Attractiveness      
Years: 5 10 15 20
 Cap Rate 2.4% 3.5% 4.7% 6.0%
 Net Cash Flow $20,224 $59,279 $119,125 $201,925
 Equity Increase $155,725 $349,509 $591,177 $893,263
 Total Gain $175,949 $408,788 $710,302 $1,095,189
           
 Average Cash Flow/Year $4,045 $5,928 $7,942 $10,096
 Average Cash Flow/Month $337 $494 $662 $841
 Average Gain/Year $35,190 $40,879 $47,353 $54,759
 Average ROI 104.4% 242.5% 421.3% 649.6%
 Annual ROI 20.9% 24.2% 28.1% 32.5%
 Projected Property Value $711,742 $865,943 $1,053,552 $1,281,807

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B C INSUFFICIENT
 Square Feet     1000 2,800 FAVORABLE
 Bedrooms     3 4 FAVORABLE
 Bathrooms     2 4 FAVORABLE
 Year Built     1970 1992 FAVORABLE
 Rent/Price (%)     0.75% 0.86% FAVORABLE
 Average Cash Flow (at year 5)     $125 $337 FAVORABLE
 Average ROI (at year 5)     15% 20.9% 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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