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Mix-use of 8 units. Ready in 2022. Strong cash-flow in metro Kansas City

Posted by Powered by Simply Do It on November 17, 2021
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For more photos, vidoes, and financial analysis – http://reistart.com/1N4NO
  • 2021 Built – the building should be completed Feb. 2022
    • Simply Do It CEO, Dani Beit-Or, visited the site and the building during Oct. 2021 – site visit videos below
  • The building has 5 residential units on top and 3 commercial spaces on the lower level.
  • Accessing the residential and the commercial are on opposite sides of the building so they don’t “interfere” with each other 
  • This is a commercial building and will require a commercial loan – we have terms from one lender listed below.
    • The buyer is welcome to use his or her choice of lender.
  • As it sits, the property is approximately 3 acres of mixed-use, with the potential to add 2 more buildings similar to the current one.
  • The total Purchase Price with – read more http://reistart.com/1N4NO

Units and Rents

All units are vacant EXCEPT one commercial – read more http://reistart.com/1N4NO


Financial Analysis

Purchase Assumptions My Offer Per Door
Asking $1,777,000 $222,125

Suggested offer (options) $1,777,000 $222,125


Financing Assumptions  
 Down Payment (%) 30%
 Down Payment Amount $533,100
 Financed Amount $1,243,900
 Interest Rate 4.00%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $5,939
 Cash Outlay (Total Out of Pocket) $621,825

Financial Assumptions Monthly Yearly
Rent (upper) $13,163 $13,500 $162,000
Rent (lower) $12,825 $153,900
 Property Tax Rate (Approx.) 1.42%  
 Property Taxes $700 $8,400
 Insurance $400 $4,800
 Repairs $400 $4,800
Variable-Cost PM 7.2%  
Property Management Fee $948 $11,372
 Leasing Fee 68% $370.2 $4,442
 HOA $0 $0
 Vacancy Rate 10.0%  
 Total Fixed Expenses $4,039 $48,473
 Total Expenses (Fixed + Mortgage) $9,978 $119,735
Financial Analysis / Deal Attractiveness
Years: 5 10
 Cap Rate 6.9% 7.8%
 Net Cash Flow $213,411 $486,120
 Equity Increase $503,816 $1,117,301
 Total Gain $717,227 $1,603,420
     
 Average Cash Flow/Year $42,682 $48,612
 Average Cash Flow/Month $3,557 $4,051
 Average Gain/Year $143,445 $160,342
 Average ROI 115.3% 257.9%
 Annual ROI 23.1% 25.8%
 Projected Property Value $2,161,992 $2,630,394

Leasing Plan

  • Since occupying 5 residential units and 2 offices (1 is already leased) may take some time we have factored in 4 months of expenses ($10,000 x 4) into the costs of the building as a way to mitigate the vacancy.
  • Simply Do It already spoke to . . . – read more http://reistart.com/1N4NO

The Buyer

Mortgage terms

Here is possible mortgage info based on a conversation with a local bank:

  • This is considered a non-owner occupied
  • Terms:
    • Downpayment for a mixed-use: 20% (15 yrs amort.) to 25% (20 yrs amort.)
    • ~4% interest rate

Open Item/s & Questions

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Thank you,

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