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Incredible cash flow on this deal. WOW! [Code: 7076 & 7080]

Posted by Powered by Simply Do It on May 26, 2022
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Combined Properties Analysis (ie: 2 buildings) 
After 15 Years (no mortgage)  
Original purchase price $720,000
Total investment (out of pocket) $204,100
15 yrs Project house value $1,307,125
Value (appreciation) Gain $587,125
15 yrs cash-flow generated $226,960
Total Gain $814,085
ROI (15 yrs) 399%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $59,426
Free & Clear cash flow (m) $4,952

Check out this video from Dani regarding this opportunity: 
  • Adjacent buildings will be sold as a package – total of 2 buildings
    • Each building has 4 units
      • Each unit is 1-bedroom/1-bathroom units
  • Cash flow is around $401 & $468 per month for each 4-plex respectively.  Combined for the 2 buildings is around $840/mo!
  • Sale is Firm AS-IS
  • Convenient corner lot
  • Utilities paid by the owner are included under the HOA section of the property analysis (it is not an HOA charge)
  • 3 Water Heaters and 3 AC units replaced in the last 5 years
  • Windows replaced in 3 units
  • All kitchens have gas ranges, garbage disposals, microwaves, and refrigerators
  • Most have updated cabinetry, updated tile floors, and dishwashers
  • Back Deck updated & retaining wall on east side replaced 3yrs ago
  • Brand new roof & updated halls
  • Access to Hwy 64/40, Forest Park & all the great restaurants, cafes, shopping and breweries in Downtown Maplewood
  • Offers by 6/1/22, Acceptance will be 6/2/22  at 10pm (CST).  Highest and Best! 
  • A-rated School District
  • Waiting on additional information regarding: Plumbing and electrical updates
  • 6 units out of the 8 are currently occupied.  Detailed breakdown of rents available upon request (owner provided information)


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

  • Built: 1928
  • Size: 2,666 & 2,720
  • Quiet residential street, 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: St. Louis

            Team: Alilcia – email directly at stl2@simplydoit.net

            Code: 7076 & 7080


            Building #1

            After 15 Years (no mortgage)  
            Original purchase price $360,000
            Total investment (out of pocket) $102,050
            15 yrs Project house value $653,562
            Value (appreciation) Gain $293,562
            15 yrs cash-flow generated $109,641
            Total Gain $403,203
            ROI (15 yrs) 395%
            ROI (annually) 26%
               
            Free & Clear cash flow (yr.) $29,420
            Free & Clear cash flow (m) $2,452

            Property Specifications 4 Per Door
             Bedrooms – 4 Family – 1 BR Units 4 1
             Bathrooms – 4 Family – 1 BA Units 4 1.0
             Square Feet 2666 667
             Year Built 1928
             Garage Size 0
             Schools Rating (on scale of A-C) A

            Purchase Assumptions My Offer Per Door
            Offer used for analysis $360,000 $90,000
            Suggested offer (low) $349,900 $87,475
            Suggested offer (high) $360,000 $90,000
            Asking $349,900 $87,475
            Market Value (after improvements) $362,900
            Improvements (lower) $3,000 $750
            Improvements (upper) $6,000 $1,500
            Closing Costs $3,600
            Mortgage Costs $3,600 $900
            Other Fees At Closing $350 $88
            Total Cost  $372,050 $900

            Financial Assumptions Monthly Yearly
            Rent (upper) $3,120 $3,400 $40,800
            Rent (lower)  $2,840 $34,080
             Property Tax Rate (Approx.) 1.4%
             Property Taxes $366 $4,388
             Insurance $150 $1,800
             Repairs $125 $1,500
            Variable-Cost PM 7.5%
            Property Management Fee $234 $2,808
             Leasing Fee 75% $97.5 $1,170
             HOA // Utilities $174 $2,094
             Vacancy Rate 4.0%
             Total Fixed Expenses $1,262 $15,143
             Total Expenses (Fixed + Mortgage) $2,795 $33,540

            Property Ratings Suggestions
             Item  Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools B A FAVORABLE
             Square Feet 1000 2,666 FAVORABLE
             Bedrooms 3 4 FAVORABLE
             Bathrooms 2 4 FAVORABLE
             Year Built 1970 1928 INSUFFICIENT
             Rent/Price (%) 0.75% 0.94% FAVORABLE
             Average Cash Flow (at year 5) $125 $401 FAVORABLE
             Average ROI (at year 5) 15% 24.1% FAVORABLE

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 4.7% 5.9% 7.2% 8.5%
             Net Cash Flow $24,051 $60,179 $109,641 $173,824
             Equity Increase $98,980 $221,420 $373,040 $561,000
             Total Gain $123,031 $281,599 $482,681 $734,824
             Average Cash Flow/Year $4,810 $6,018 $7,309 $8,691
             Average Cash Flow/Month $401 $501 $609 $724
             Average Gain/Year $24,606 $28,160 $32,179 $36,741
             Average ROI 120.6% 275.9% 473.0% 720.1%
             Annual ROI 24.1% 27.6% 31.5% 36.0%
             Projected Property Value $441,523 $537,181 $653,562 $795,159

            Building #2

            After 15 Years (no mortgage)  
            Original purchase price $360,000
            Total investment (out of pocket) $102,050
            15 yrs Project house value $653,562
            Value (appreciation) Gain $293,562
            15 yrs cash-flow generated $123,098
            Total Gain $416,660
            ROI (15 yrs) 408%
            ROI (annually) 27%
               
            Free & Clear cash flow (yr.) $30,447
            Free & Clear cash flow (m) $2,537

            Property Specifications 4 Per Door
             Bedrooms – 4 Family – 1 BR Units 4 1
             Bathrooms – 4 Family – 1 BA Units 4 1.0
             Square Feet 2720 680
             Year Built 1928
             Garage Size 0
             Schools Rating (on scale of A-C) A

            Purchase Assumptions My Offer Per Door
            Offer used for analysis $360,000 $90,000
            Suggested offer (low) $349,900 $87,475
            Suggested offer (high) $360,000 $90,000
            Asking $349,900 $87,475
            Market Value (after improvements) $362,900
            Improvements (lower) $3,000 $750
            Improvements (upper) $6,000 $1,500
            Closing Costs $3,600
            Mortgage Costs $3,600 $900
            Other Fees At Closing $350 $88
            Total Cost  $372,050 $900

            Financial Assumptions Monthly Yearly
            Rent (upper) $3,153 $3,400 $40,800
            Rent (lower) 1,445/900 per unit $2,905 $34,860
             Property Tax Rate (Approx.) 1.4%
             Property Taxes $369 $4,426
             Insurance $150 $1,800
             Repairs $125 $1,500
            Variable-Cost PM 7.5%
            Property Management Fee $236 $2,837
             Leasing Fee 75% $98.5 $1,182
             HOA // Utilities $134 $1,606
             Vacancy Rate 4.0%
             Total Fixed Expenses $1,230 $14,755
             Total Expenses (Fixed + Mortgage) $2,763 $33,152

            Property Ratings Suggestions
             Item  Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools B A FAVORABLE
             Square Feet 1000 2,720 FAVORABLE
             Bedrooms 3 4 FAVORABLE
             Bathrooms 2 4 FAVORABLE
             Year Built 1970 1928 INSUFFICIENT
             Rent/Price (%) 0.75% 0.94% FAVORABLE
             Average Cash Flow (at year 5) $125 $468 FAVORABLE
             Average ROI (at year 5) 15% 24.9% FAVORABLE

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 5.5% 6.7% 8.0% 9.4%
             Net Cash Flow $28,101 $68,700 $123,098 $192,731
             Equity Increase $98,980 $221,420 $373,040 $561,000
             Total Gain $127,080 $290,120 $496,138 $753,730
             Average Cash Flow/Year $5,620 $6,870 $8,207 $9,637
             Average Cash Flow/Month $468 $572 $684 $803
             Average Gain/Year $25,416 $29,012 $33,076 $37,687
             Average ROI 124.5% 284.3% 486.2% 738.6%
             Annual ROI 24.9% 28.4% 32.4% 36.9%
             Projected Property Value $441,523 $537,181 $653,562 $795,159

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            Combined Analysis

            After 15 Years (no mortgage)  
            Original purchase price $720,000
            Total investment (out of pocket) $204,100
            15 yrs Project house value $1,307,125
            Value (appreciation) Gain $587,125
            15 yrs cash-flow generated $226,960
            Total Gain $814,085
            ROI (15 yrs) 399%
            ROI (annually) 27%
               
            Free & Clear cash flow (yr.) $59,426
            Free & Clear cash flow (m) $4,952

            Property Specifications 8 Per Door
             Bedrooms – 4 Family – 1 BR Units 8 1
             Bathrooms – 4 Family – 1 BA Units 8 1.0
             Square Feet 5386 673
             Year Built 1928
             Garage Size 0
             Schools Rating (on scale of A-C) A

            Purchase Assumptions My Offer Per Door
            Offer used for analysis $720,000 $90,000
            Suggested offer (low) $699,800 $87,475
            Suggested offer (high) $720,000 $90,000
            Asking $699,800 $87,475
            Market Value (after improvements) $725,800
            Improvements (lower) $6,000 $750
            Improvements (upper) $12,000 $1,500
            Closing Costs $7,200
            Mortgage Costs $7,200 $900
            Other Fees At Closing $700 $88
            Total Cost  $744,100 $900

            Financial Assumptions Monthly Yearly
            Rent (upper) $6,240 $6,800 $81,600
            Rent (lower)  $5,680 $68,160
             Property Tax Rate (Approx.) 1.4%
             Property Taxes $735 $8,820
             Insurance $300 $3,600
             Repairs $250 $3,000
            Variable-Cost PM 7.5%
            Property Management Fee $468 $5,616
             Leasing Fee 75% $195.0 $2,340
             HOA // Utilities $308 $2,094
             Vacancy Rate 4.0%
             Total Fixed Expenses $2,487 $29,843
             Total Expenses (Fixed + Mortgage) $5,553 $66,635

            Property Ratings Suggestions
             Item  Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools B A FAVORABLE
             Square Feet 1000 5,386 FAVORABLE
             Bedrooms 3 8 FAVORABLE
             Bathrooms 2 8 FAVORABLE
             Year Built 1970 1928 INSUFFICIENT
             Rent/Price (%) 0.75% 0.94% FAVORABLE
             Average Cash Flow (at year 5) $125 $840 FAVORABLE
             Average ROI (at year 5) 15% 17.0% FAVORABLE

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 4.9% 6.1% 7.4% 8.8%
             Net Cash Flow $50,413 $125,220 $226,960 $358,437
             Equity Increase $197,959 $442,840 $746,080 $1,121,999
             Total Gain $248,372 $568,060 $973,040 $1,480,436
             Average Cash Flow/Year $10,083 $12,522 $15,131 $17,922
             Average Cash Flow/Month $840 $1,044 $1,261 $1,493
             Average Gain/Year $49,674 $56,806 $64,869 $74,022
             Average ROI 121.7% 278.3% 476.7% 725.3%
             Annual ROI 24.3% 27.8% 31.8% 36.3%
             Projected Property Value $883,047 $1,074,361 $1,307,125 $1,590,317

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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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