“Gramma’s” House with Lots of Equity and Strong Cashflow ($550+) [code: Pensacola1]
Dear friends,At Simply Do It, our philosophy has always been to offer investment opportunities only in areas where we have strong, trustworthy local teams,
including realtors and property managers, to support your transaction. However, every so often, a unique opportunity arises that we feel compelled to share.
We have an off-market property in a desirable area of Pensacola, FL, that might be of interest. This large 4-bedroom, 3.5-bath, and is 2,919 sqft, home is located about 1000 yards from Pensacola Bay and offers significant potential for value creation. Built in 1986, the house needs cosmetic updates—mainly new paint, carpets, and flooring—but has great bones. The property is currently vacant as the elderly owners have moved out due to health reasons, and their children are looking for a quick, hassle-free sale. Online search shows this house to have very low flood risk.
The good news: Because the property is not listed and the family is prioritizing a fast cash transaction, they are willing to sell at a deep discount. While the market value is approximately $580K, we believe this home can be acquired for $500K or potentially less with a cash offer.
Important to note: We do not have a local realtor or property manager in Pensacola. However, through our network, we can connect you with vendors who can:
- Assist with renovations.
- Handle the property inspection.
- Provide detailed photos of the interior and exterior for a minimal fee, should you require them.
This is a special opportunity with an SDI fee of $15K ($22,500 for non-SDI clients).
Don’t miss out on this chance to invest in a high-potential Pensacola property. Reach out for more details or to discuss how we can help you move forward.
Price: The suggested price of $480K has not been officially approved yet, but the type of offer submitted can help persuade the seller to accept it.
The analysis below is based on 30% down-payment although the seller wants a cash offer and a quick close. Buyer who buys cash can consider refi after closing.
| Property Specifications | 1 |
| Bedrooms | 4 |
| Bathrooms | 3 |
| Square Feet | 1917 |
| Year Built | 1985 |
| Garage Size | 1 |
| Schools Rating (scale 3-30, 30 is best) | 13 |
| Lot size (sq ft) | 13,068 |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $480,000 |
| Suggested offer (low) | $480,000 |
| Suggested offer (high) | $480,000 |
| Asking | $480,000 |
| Market Value (after improvements) | $580,000 |
| Day-1 Equity | $100,000 |
| Estimated Improvements (lower) | $30,000 |
| Estimated Improvements (upper) | $40,000 |
| Estimated Closing Costs | $4,800 |
| Estimated Mortgage Costs | $0 |
| Other Fees At Closing (pts, . . . ) | $20,000 |
| Total Cost (estimated) | $539,800 |
| Financing Assumptions | |||
| Down Payment (%) | 30% | ||
| Down Payment Amount | $144,000 | ||
| Financed Amount | $336,000 | ||
| Interest Rate | 6.000% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | 59.7% | $2,014 | |
| Cash Outlay (Total Out of Pocket) | $203,800 | ||
| Estimated Financial Assumptions | Monthly | Yearly | |
| Rent (upper)* | $3,450 | $41,400 | |
| Rent (lower)* | $3,300 | $39,600 | |
| Property Taxes | $350 | $4,200 | |
| Insurance | $160 | $1,920 | |
| Repairs | 75 | $100 | $1,200 |
| Property Management Monthly (%) | 0.0% | ||
| Property Management Monthly ($) | $75 | $900 | |
| Leasing Fee | 100% | $140.6 | $1,688 |
| HOA or Fixed Costs | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | #DIV/0! | $958 | $11,492 |
| Total Expenses (Fixed + Mortgage) | $2,972 | $35,665 | |
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 3.3% | 4.7% |
| Net Cash Flow | $34,087 | $95,442 |
| Equity Increase | $148,996 | $333,358 |
| Total Gain | $183,083 | $428,800 |
| Average Cash Flow/Year | $6,817 | $9,544 |
| Average Cash Flow/Month | $568 | $795 |
| Average Gain/Year | $36,617 | $42,880 |
| Average ROI | 89.8% | 210.4% |
| Annual ROI | 18.0% | 21.0% |
| Projected Property Value | $705,659 | $858,542 |
Neighborhood Street View
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.