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OFF MARKET buy with inspection already finished [code 813]

Posted by Powered by Simply Do It on February 15, 2022


FULL DISCLOSURE – SDI's local team (PM & agent)  both have a minority interest in this property with an investment group.  This investment group is wanting to reallocate funds into a multifamily opportunity.  

  1.  Long term tenant.  They have been renting since 2015 and just signed a 2 -year lease for $1500/mo.
  2. New owner will not have to pay lease up fees, renewal fees, vacancy loss, turn costs, rehab costs, holding costs, etc. for at least 2 years along with immediate revenue.  Should help with ROI quite considerably.
  3. This home is located in an old alabaster neighborhood that should continue to appreciate and rents should continue to increase.
  4. The home could be listed around $250k on high end currently if tenant was out and home cleaned up.  Recent comparable on the same street street just sold for $267k.  So I think at the $230k there should be some immediate equity gained by whomever.
  5. We have already completed a full inspection on this property.  No surprises here! 
What's next?
Email/text us or the local team ( back for address, analysis and to get connected to Simply Do It's local team that handles this transaction.
Metro: Birmingham –
Code: 813
Property Specifications1
 Square Feet1626
 Year Built1976
 Garage Size2
 Schools Rating (on scale of A-F)B
Purchase AssumptionsMy Offer
Offer used for analysis$230,000
Suggested offer (low)$230,000
Suggested offer (high)$230,000
Market Value (after improvements)$250,000
Improvements (lower)$3,500
Improvements (upper)$9,000
Closing Costs$2,300
Mortgage Costs$2,300
Other Fees At Closing$0
Total Cost $240,850

Financing Assumptions 
 Down Payment (%)25%
 Down Payment Amount$57,500
 Financed Amount$172,500
 Interest Rate3.875%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$811
 Cash Outlay (Total Out of Pocket)$68,350

Financial AssumptionsMonthlyYearly
Rent (upper)$1,625$1,750$21,000
Rent (lower)$1,500$18,000
 Property Tax Rate (Approx.)1.0% 
 Property Taxes$164$1,968
Variable-Cost PM8.0% 
Property Management Fee$130$1,560
 Leasing Fee60%$40.6$488
 Vacancy Rate4.0% 
 Total Fixed Expenses$594$7,133
 Total Expenses (Fixed + Mortgage)$1,406$16,867

Financial Analysis / Deal Attractiveness    
 Cap Rate4.6%5.6%6.6%7.7%
 Net Cash Flow$15,688$38,075$67,857$105,805
 Equity Increase$70,958$157,236$262,140$389,691
 Total Gain$86,647$195,311$329,997$495,496
 Average Cash Flow/Year$3,138$3,808$4,524$5,290
 Average Cash Flow/Month$261$317$377$441
 Average Gain/Year$17,329$19,531$22,000$24,775
 Average ROI126.8%285.8%482.8%724.9%
 Annual ROI25.4%28.6%32.2%36.2%
 Projected Property Value$304,163$370,061$450,236$547,781

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
 Square Feet 10001,626FAVORABLE
 Bedrooms 33FAVORABLE
 Bathrooms 22FAVORABLE
 Year Built 19701976FAVORABLE
 Rent/Price (%) 0.75%0.76%FAVORABLE
 Average Cash Flow (at year 5)$125$261FAVORABLE
 Average ROI (at year 5)15%25.4%FAVORABLE
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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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