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Off-Market home in PRIME location! [Code: 4336]

Posted by Powered by Simply Do It on December 29, 2022
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Why THIS deal??
  • ~$647/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$428 at today's rates of 6.0%
  • Non-conforming Duplex that have separate entrances and can be rented separately
  • Off-Market Opportunity directly from builder who completed the renovations
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After 15 Years (no mortgage)
Original purchase price $314,000
Total investment (out of pocket) $87,780
15 yrs Project house value $565,496
Value (appreciation) Gain $251,496
15 yrs cash-flow generated $112,780
Total Gain $364,276
ROI (15 yrs) 415%
ROI (annually) 28%
   
Free & Clear cash flow (yr.) $27,997
Free & Clear cash flow (m) $2,333
  • 2 bedroom, 2 bath Single Family Home (studio upstairs with separate entrance)
  • Non-conforming duplex with separate entrances
  • 2 bed/1 bath downstairs unit rents for $2,000/mo and upstairs studio rents for $700/mo. Both are currently vacant
  • Kansas City does not have annual inspections for this type of property
  • Off Market for today, but will be listed tomorrow!
  • Ideal tenant would be young professionals who want to be close to downtown
  • Potentially could be sold as fully furnished if the investor was interested
  • Was previously used as a short-term rental by builder
  • Builder is liquidating in order to fund another project
  • Price is firm
  • Highly appreciating neighborhood with great proximity to downtown
  • No HOA charges
  • 3,286 square foot lot


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

  • Built: 1912 (completely renovated in 2020)
  • Size: 1,400 square foot home
  • Low Crime, Desirable Community located near Downtown KC Plaza and Country Club Plaza

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: 4336


Property Specifications 1
 Bedrooms 2
 Bathrooms 2
 Square Feet 1400
 Year Built 1912
 Garage Size 0
 Schools Rating (on scale of A-C) C

Purchase Assumptions My Offer
Offer used for analysis $314,000
Suggested offer (low) $314,000
Suggested offer (high) $314,000
Asking $314,000
Market Value (after improvements) $314,000
Improvements (lower) $2,000
Improvements (upper) $4,000
Closing Costs $3,140
Mortgage Costs $3,140
Other Fees At Closing $0
Total Cost  $323,280

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $78,500
 Financed Amount $235,500
 Interest Rate  (5/6 ARM)  6.000%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $1,412
 Cash Outlay (Total Out of Pocket) $87,780

Financial Assumptions Monthly Yearly
Rent (upper) $2,600 $2,700 $32,400
Rent (lower) $2,500 $30,000
Property Tax Rate (Approx.) 1.4%  
Property Taxes   $200 $2,400
Insurance   $130 $1,560
Repairs   $150 $1,800
Variable-Cost PM   7.0%  
Property Management Fee $182 $2,184
Leasing Fee 68% $73.1 $878
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $832 $9,982
 Total Expenses (Fixed + Mortgage) $2,244 $26,925

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 5.9% 7.2% 8.6% 10.1%
 Net Cash Flow $25,702 $62,897 $112,780 $176,672
 Equity Increase $84,386 $189,216 $319,676 $482,333
 Total Gain $110,088 $252,113 $432,456 $659,006
           
 Average Cash Flow/Year $5,140 $6,290 $7,519 $8,834
 Average Cash Flow/Month $428 $524 $627 $736
 Average Gain/Year $22,018 $25,211 $28,830 $32,950
 Average ROI 125.4% 287.2% 492.7% 750.7%
 Annual ROI 25.1% 28.7% 32.8% 37.5%
 Projected Property Value $382,029 $464,797 $565,496 $688,013


Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B C INSUFFICIENT
 Square Feet     1000 1,044 FAVORABLE
 Bedrooms     3 2 INSUFFICIENT
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 1912 INSUFFICIENT
 Rent/Price (%)     0.75% 0.86% FAVORABLE
 Average Cash Flow (at year 5)     $125 $428 FAVORABLE
 Average ROI (at year 5)     15% 25.1% FAVORABLE


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image.png * KC Plaza/Country Club Downtown is in the center circle 

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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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