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Hidden St. Louis Gem! [Code: 158]

Posted by Powered by Simply Do It on November 16, 2022
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Why THIS deal??
  • ~$265/mo. cash flow once you can refi to 4.5% (at 7.0% it essentially breaks even)
  • $10K Instant equity if aggressive suggested offer is accepted
  • Price has already been dropped by $5K on 11/5/22
  • 25 Days on the market.  Great negotiation tool
  • Low purchase price.  Great for a beginner investor! 
  • Seller willing to give additional $5K towards closing costs or rate buy down
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After 15 Years (no mortgage)
Original purchase price $260,000
Total investment (out of pocket) $70,950
15 yrs Project house value $486,255
Value (appreciation) Gain $226,255
15 yrs cash-flow generated $16,351
Total Gain $242,606
ROI (15 yrs) 342%
ROI (annually) 23%
   
Free & Clear cash flow (yr.) $19,065
Free & Clear cash flow (m) $1,589
  • 3 bedroom, 2 bath Single Family Home 
  • Low HOA fees
  • Hardwood floors throughout.  Perfect for a rental! 
  • Awaiting seller's disclosures for mechanical updates
  • Great location with quick access to major commuting routes
  • Aggressive suggested offer to provide $10K instant equity!
  • Area undergoing appreciation and increasing rents
  • B rated schools
  • Attached 2-car garage
  • 0.25 Acre lot


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

  • Built: 1963
  • Size: 1,508 square foot home
  • Low Crime, Desirable Community, Good 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: St. Louis

Team: Nathan  – email directly at stl1@simplydoit.net

Code: 158


Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1508
 Year Built 1963
 Garage Size 2
 Schools Rating (on scale of A-C) B

Purchase Assumptions My Offer Per Door
Offer used for analysis $260,000  
Suggested offer (low) $260,000  
Suggested offer (high) $270,000  
Asking $270,000  
Market Value (after improvements) $270,000  
Improvements (lower) $5,000  
Improvements (upper) $6,500  
Closing Costs $2,600  
Mortgage Costs $2,600  
Other Fees At Closing -$5,000 Seller concession
Total Cost  $265,950  

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $65,000
 Financed Amount $195,000
 Interest Rate  7/6 ARM 7.000%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $1,297
 Cash Outlay (Total Out of Pocket) $70,950

Financial Assumptions Monthly Yearly
Rent (upper) $1,975 $2,000 $24,000
Rent (lower) $1,950 $23,400
Property Tax Rate (Approx.) 1.2%  
Property Taxes   $275 $3,300
Insurance   $100 $1,200
Repairs   $100 $1,200
Variable-Cost PM   7.5%  
Property Management Fee $148 $1,778
Leasing Fee 75% $61.7 $741
HOA   $13 $156
Vacancy Rate   4.0%  
Total Fixed Expenses $771 $9,251
 Total Expenses (Fixed + Mortgage) $2,068 $24,819

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate -0.7% 0.4% 1.5% 2.8%
 Net Cash Flow -$2,647 $2,531 $16,351 $39,711
 Equity Increase $69,940 $157,332 $266,918 $404,868
 Total Gain $67,292 $159,863 $283,269 $444,579
           
 Average Cash Flow/Year -$529 $253 $1,090 $1,986
 Average Cash Flow/Month -$44 $21 $91 $165
 Average Gain/Year $13,458 $15,986 $18,885 $22,229
 Average ROI 94.8% 225.3% 399.3% 626.6%
 Annual ROI 19.0% 22.5% 26.6% 31.3%
 Projected Property Value $328,496 $399,666 $486,255 $591,603

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 1,508 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 1963 INSUFFICIENT
 Rent/Price (%)     0.75% 0.77% FAVORABLE
 Average Cash Flow (at year 5)     $125 -$44 INSUFFICIENT
 Average ROI (at year 5)     15% 19.0% 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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