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Look at this INCREDIBLE Cash Flow in KC metro! [Code: 801]

Posted by Powered by Simply Do It on December 9, 2022
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Why THIS deal??
  • ~$1,117/mo. cash flow once you can refi to 5.0% 
  • Cash flows at ~$803 at today's rates of 6.375%
  • Own 4 doors for only $120K each
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After 15 Years (no mortgage)
Original purchase price $480,000
Total investment (out of pocket) $143,600
15 yrs Project house value $864,453
Value (appreciation) Gain $384,453
15 yrs cash-flow generated $203,680
Total Gain $588,132
ROI (15 yrs) 410%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $46,386
Free & Clear cash flow (m) $3,866
  • Fourplex with each unit having 3 bedrooms, 1.5 baths
  • 2 story townhome units
  • Great location with quick access to major commuting routes, shopping and schools
  • Unit A: 6/1/2022-5/31/2023.  Current Rent $800/mo.  Expected Rent $1200/mo.
  • Unit B: 3/1/2022-2/28/2023.  Current Rent $800/mo.  Expected Rent $1200/mo.
  • Unit C: Vacant.  Expected Rent $1200/mo.
  • Unit D: Will be vacant as of 12/31/2022.  
    Expected Rent $1200/mo.
  • Located at the very end of a cul de sac
  • The higher end of improvement costs is for a buyer who CHOOSES to upgrade.  Not necessary to make this property lease-ready. 
  • Currently underrented
  • B rated schools
  • Tenants pay ALL utilities
  • No HOA charges
  • Wooded back yard area
  • Newly listed.  Will not last long. 
  • Each unit has a dishwasher and washer/dryer hookups
  • This deal allows an investor to buy 4-doors for $120K each
  • 0.32 acre lot


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

  • Built: 2001
  • Size: 6,000 square foot 4-plex (each unit is 1500 square feet)
  • Low Crime, Desirable Community, B 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: Kansas City

Team: Meredith  – email directly at kc1@simplydoit.net

Code: 801

Property Specifications 4 Per Door
 Bedrooms 12 3
 Bathrooms 6 1.5
 Square Feet 6000 1500
 Year Built 2001  
 Garage Size 0  
 Schools Rating (on scale of A-C) B  

Purchase Assumptions My Offer Per Door
Offer used for analysis $480,000 $120,000
Suggested offer (low) $470,000 $117,500
Suggested offer (high) $480,000 $120,000
Asking $480,000 $120,000
Market Value (after improvements) $480,000  
Improvements (lower) $8,000 $2,000
Improvements (upper) $20,000 $5,000
Closing Costs $4,800 $1,200
Mortgage Costs $4,800 $1,200
Other Fees At Closing $0  
Total Cost  $503,600  

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $120,000
 Financed Amount $360,000
 Interest Rate  (5/6 ARM) Multi-family 6.375%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $2,246
 Cash Outlay (Total Out of Pocket) $143,600

Financial Assumptions Monthly Yearly
Rent (upper) $4,400 $4,800 $57,600
Rent (lower) $4,000 $48,000
Property Tax Rate (Approx.) 1.4%  
Property Taxes   $325 $3,900
Insurance   $250 $3,000
Repairs   $300 $3,600
Variable-Cost PM   7.0%  
Property Management Fee $308 $3,696
Leasing Fee 68% $123.8 $1,485
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $1,470 $17,645
 Total Expenses (Fixed + Mortgage) $3,716 $44,596

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 6.7% 8.0% 9.5% 11.0%
 Net Cash Flow $48,191 $115,424 $203,680 $315,147
 Equity Increase $127,482 $286,286 $484,582 $732,830
 Total Gain $175,674 $401,710 $688,262 $1,047,977
           
 Average Cash Flow/Year $9,638 $11,542 $13,579 $15,757
 Average Cash Flow/Month $803 $962 $1,132 $1,313
 Average Gain/Year $35,135 $40,171 $45,884 $52,399
 Average ROI 122.3% 279.7% 479.3% 729.8%
 Annual ROI 24.5% 28.0% 32.0% 36.5%
 Projected Property Value $583,993 $710,517 $864,453 $1,051,739

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 6,000 FAVORABLE
 Bedrooms     3 12 FAVORABLE
 Bathrooms     2 6 FAVORABLE
 Year Built     1970 2001 FAVORABLE
 Rent/Price (%)     0.75% 1.00% FAVORABLE
 Average Cash Flow (at year 5)     $125 $803 FAVORABLE
 Average ROI (at year 5)     15% 24.5% 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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