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Look Past the Pictures, People….This is a Great Deal!! [Code: 6]

Posted by Powered by Simply Do It on December 2, 2022
0
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Why THIS deal??
  • ~$460/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$250 at today's rates of 6.875%
  • Even at full asking price and today's rates, this house STILL cash flows from day one at ~$175/ mo. 
  • Been on the Market 28 Days.  Great negotiation tool!
  • Price already dropped by $10K on 11/16/22
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IF home is paid off in 15 Years (no mortgage)
Original purchase price $185,000
Total investment (out of pocket) $62,850
15 yrs Project house value $342,179
Value (appreciation) Gain $157,179
15 yrs cash-flow generated $67,624
Total Gain $224,803
ROI (15 yrs) 358%
ROI (annually) 24%
   
Free & Clear cash flow (yr.) $17,678
Free & Clear cash flow (m) $1,473

  • 3 bedroom, 3 bath Single Family Home 
  • No HOA fees
  • Needs some TLC, but costs of rehab have been worked into the spreadsheet
  • Great location with quick access to major commuting routes, shopping and schools
  • Suggested offer to provide $15K instant equity once work is completed
  • B rated schools
  • Been on the Market 28 Days.  Great negotiation tool!
  • 6,795 square foot lot


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

  • Built: 1970
  • Size: 1,344 square foot home
  • Low Crime, Desirable Community, Great 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: 6

Property Specifications 1
 Bedrooms 3
 Bathrooms 3
 Square Feet 1344
 Year Built 1970
 Garage Size 0
 Schools Rating (on scale of A-C) B

Purchase Assumptions My Offer
Offer used for analysis $185,000
Suggested offer (low) $185,000
Suggested offer (high) $190,000
Asking $200,000
Market Value (after improvements) $200,000
Improvements (lower) $10,000
Improvements (upper) $15,000
Closing Costs $1,850
Mortgage Costs $1,850
Other Fees At Closing $400
Total Cost  $201,600

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $46,250
 Financed Amount $138,750
 Interest Rate  7/6 ARM 6.875%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $911
 Cash Outlay (Total Out of Pocket) $62,850

Financial Assumptions Monthly Yearly
Rent (upper) $1,700 $1,800 $21,600
Rent (lower) $1,600 $19,200
Property Tax Rate (Approx.) 1.2%  
Property Taxes   $140 $1,680
Insurance   $100 $1,200
Repairs   $100 $1,200
Variable-Cost PM   7.5%  
Property Management Fee $128 $1,530
Leasing Fee 75% $53.1 $638
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $584 $7,002
 Total Expenses (Fixed + Mortgage) $1,495 $17,940

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 4.8% 5.9% 7.2% 8.5%
 Net Cash Flow $15,033 $37,322 $67,624 $106,772
 Equity Increase $49,483 $111,284 $188,728 $286,124
 Total Gain $64,515 $148,607 $256,352 $392,895
           
 Average Cash Flow/Year $3,007 $3,732 $4,508 $5,339
 Average Cash Flow/Month $251 $311 $376 $445
 Average Gain/Year $12,903 $14,861 $17,090 $19,645
 Average ROI 102.6% 236.4% 407.9% 625.1%
 Annual ROI 20.5% 23.6% 27.2% 31.3%
 Projected Property Value $231,164 $281,246 $342,179 $416,313

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 1,344 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 3 FAVORABLE
 Year Built     1970 1970 FAVORABLE
 Rent/Price (%)     0.75% 0.97% FAVORABLE
 Average Cash Flow (at year 5)     $125 $251 FAVORABLE
 Average ROI (at year 5)     15% 20.5% 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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