Property Description
General Info
- There are 6 duplexes available
- Asking is $219,000 per one duplex ($109,500 per side)
- By grouping one or multiple investors, we plan to come in and offer on all 6 duplexes a good-strong offer
- Preference will be given to any investor that would by all or more than one
- Our target offer price is 185k-190k achieving it by making offers on all 6
Next Step
- Questions are BEST posted as a comment below
- Chose which ones/ you would like to make an offer on
- Email or call us for more info or to make an offer.
Area/Location
SDI’s Local Realtor Remarks
- These are located in a desirable area with good schools.
- I have been watching these buildings for a few weeks and they just lowered the price yesterday to $219,000 which makes the numbers work.
- I talked with the seller’s agent today and there is much more interest now at this price so I would recommend if you are interested, please let me know as soon as possible.
She does not have any offers yet so I think we could offer less than the list price. - I drove by all of the duplexes today (Fri. 1/8/21)
- Some are in better shape than others.
- 409/411 | 413/415 | 417/419 are in a cul de sac at the end of a street of single-family homes.
- The roofs on all of the properties seem to be older.
- They are all brick which is positive.
- I am hoping we could get them for lower than $219,000.
FAQ
1. Basements: Right now we don’t know if any of the basements are finished or unfinished.
2. Market rent: $850 is pretty reasonable.
3. Offer price: we could offer $205, 210k or somewhere around that and see what the seller says.
4. Known concerns: no concerns other than the roofs are older.
The property manager says it’s still a good place to have a rental.
5. Units 1112 – 2420 have a mobile home park behind them – is that an issue? Yes, there’s a mobile home park behind but there is a line of trees back there.
6. Roff and HVAC ages? waiting to hear back from the seller.
7. One seller for all duplexes? Same seller on all of them.
8. St. Charles is very popular. Good schools. Taxes are approx 1700. Lindenwood College nearby.
Duplexes specs and details
| Reported Expenses | |||||||||||
| Unit | Rent | Deposit | Lease expires | 2019 Taxes | Ins | Main | Beds | Bath | Sq Ft | Garage | Yr |
| 409 | $825 | $600 | 8/31/21 |
$1,841
|
$700
|
$421
|
2 | 1 | 720 | 0 | 1960 |
| 411 | $825 | $500 | 8/31/21 | 2 | 1 | 720 | 0 | 1960 | |||
| $1,650 | $1,100 | ||||||||||
| 413* | $800 | $800 | 2/28/21 |
$1,643
|
$700
|
$463
|
2 | 1 | 720 | 0 | 1960 |
| 415 | $800 | $500 | 6/30/21 | 2 | 1 | 720 | 0 | 1960 | |||
| $1,600 | $1,300 | Statues: | reserved to Y.V. | ||||||||
| 417 | $850 | $850 | 2/28/21 |
$1,646
|
$700
|
$562
|
2 | 1 | 720 | 0 | 1960 |
| 419** | $850 | $500 | 10/31/21 | 2 | 1 | 720 | 0 | 1960 | |||
| $1,700 | $1,350 | ||||||||||
| 1112 | $875 | $850 | 6/30/21 |
$1,977
|
$700
|
$1,214
|
2 | 1 | 744 | 0 | 1959 |
| 1114 | $800 | $500 | 12/31/21 | 2 | 1 | 744 | 0 | 1959 | |||
| $1,675 | $1,350 | ||||||||||
| 1204 | $825 | $500 | 12/31/21 |
$1,815
|
$700
|
$1,165
|
2 | 1 | 744 | 0 | 1959 |
| 1206 | $865 | $895 | 7/31/21 | 2 | 1 | 744 | 0 | 1959 | |||
| $1,690 | $1,395 | ||||||||||
| 2420 | $895 | $895 | 12/31/21 |
$1,882
|
$700
|
$893
|
2 | 1 | 744 | 0 | 1959 |
| 2422 | $850 | $850 | 4/30/21 | 2 | 1 | 744 | 0 | 1959 | |||
| $1,745 | $1,745 | ||||||||||
* not renewing the lease
** Tenant has received an eviction notice.
Analysis
| Pricing Indicators | |
| Market Value | $215,000 |
| Asking | $219,000 |
| GAP | $4,000 |
| SDI’s suggested Offer per duplex | $200,000 |
| Offer-Asking GAP ($) | -$19,000 |
| Offer-Asking GAP (%) | 9% |
| Offer-MarketValue Gap ($) | -$15,000 |
| Offer-MarketValue Gap (%) | 7% |
| Day on Market | 105 |
| Project Annual Cashflow | $4,876 |
| Purchase Assumptions | My Offer |
| Asking | $219,000 |
| Suggsted offer (low) | $200,000 |
| Suggsted offer (high) | $219,000 |
| Suggsted offer (options) | $200,000 |
| Land Value (%) | 25% |
| Building Value (%) | 75% |
| Market Value (after improvements) | $215,000 |
| Improvements (lower) | $4,000 |
| Improvements (upper) | $6,500 |
| Closing Costs | $2,500 |
| Mortgage Costs | $2,500 |
| Other Fees At Closing | $295 |
| Total Cost | $210,545 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $50,000 | ||
| Financed Amount | $150,000 | ||
| Interest Rate | 3.40% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $665 | ||
| Cash Outlay (Total Out of Pocket) | $60,545 | ||
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper) | $1,695 | $1,790 | $21,480 | |
| Rent (lower) | $1,600 | $19,200 | ||
| Property Tax Rate (Approx.) | 1.39% | |||
| Property Taxes | $137 | $1,643 | ||
| Insurance | $110 | $1,320 | ||
| Repairs | $160 | $1,920 | ||
| Variable-Cost PM | 7.5% | |||
| Property Management Fee | $127 | $1,526 | ||
| Leasing Fee | 75% | $53 | $636 | |
| HOA | $0 | $0 | ||
| Vacancy Rate | 5.0% | |||
| Total Fixed Expenses | $665 | $7,986 | ||
| Total Expenses (Fixed + Mortgage) | $1,331 | $15,969 | ||
| Financial Analysis / Deal Attractiveness | |
| Years: | 5 |
| Cap Rate | 8.1% |
| Net Cash Flow | $24,378 |
| Equity Increase | $62,267 |
| Total Gain | $86,645 |
| Average Cash Flow/Year | $4,876 |
| Average Cash Flow/Month | $406 |
| Average Gain/Year | $17,329 |
| Average ROI | 143.1% |
| Annual ROI | 28.6% |
| Projected Property Value | $261,580 |
DISCLAIMER |
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| This 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. The author of this analysis spreadsheet is not responsible nor liable for any damages arising from the use of the tool. |
City: Saint Charles
Area: St Louis
State/county: MO
Zip: 63301
Country: United States
Open in Google maps Property ID: 27837
Price: Suggsted Offer $ 190,000 per duplex
Property size: 1 440 ft2
Rooms: 3
Bedrooms: 2
Bathrooms: 1
Year Built: 1960
Garage: 0
Garage Size: 0
Rent (mo): 1650
ROI (ann): 19
Cashflow (mo): 405
Property Taxes (mo): 1650
Insurance (mo): 110
Repairs (mo): 100
Management Fee (mo): 125
Leasing Fee (ann): 650
HOA (mo): 0
Vacancy Rate (ann): 5
60 / Somewhat Walkable more details here 
Is the price 219k per duplex with total rent of 1700/mo ?
Asking is 219k
We would like to come in w/ multiple buyers and offer on all 6, but offer 190k
Current rents are 800-850 (see table of rents per unit)