Co-Ownership: $54,000 per owner. St Louis MO

$ 54,000 per owner

This property can be purchased by one investor in a traditional ownership strategy: one owner, cash or mortgaged.

What is Co-Ownership

Program Highlights

  • Multiple owners to share the cost of purchase and maintenance
  • Cash purchase to alleviate the cost of interest payments on a mortgage
  • Operation manager handles the day-to-day activities to free up personal time spent on this property
  • Less hassle -> more passive
  • Long term hold
  • Organized as an LLC

Benefits

  • Lower initial cash investment requirement
  • “Out-sourced” main activities to a professional
  • Higher cash flow
  • No mortgage qualification or additional debt incurred

Who Should Consider?

  • Novice individuals who have apprehensions about buying their first rental property out of state.
  • Active investors who are concerned about having ample time to manage their investment.
  • Investors who would prefer to avoid the burden of a mortgage or encounter difficulties in securing one.
  • Investors who are already occupied with managing other properties and wish to steer clear of taking on additional real estate.
  • Investors who would rather not handle property managers or tenants.
  • Investors who prefer to diversify their portfolio across multiple properties or investments in various locations.

Basic Guidelines of Coownership Program


The most fitting description of this program is that you share ownership of this property. You have a vested interest in the investment just as you would be if you owned it entirely yourself, however you are sharing the costs with a small group of other like-minded individuals. Your mindset and approach should be similar to owning it individually, with the only distinction being that you have partners in this property. To ensure smooth ownership, there is an operation manager who operates on behalf of all the owners.

  • It resembles direct ownership, yet involves delegating another professional to handle the property’s day-to-day aspects, aspiring for a more passive approach.
  • The general goal is a long term buy and hold rental, preferably not less than 7 years, ideally more than 10 – but owners can always vote on it in the future.
  • The purchase is made in cash; however, once owned, co-owners can decide whether they would like to rely on each other’s resources or not.

The Operation Manager

SDI has collaborated with a knowledgeable individual in real estate investment within the local area to manage all the ongoing matters concerning the rental property.

The use of OM eliminates the owner’s responsibility of overseeing the daily management and maintenance of the property, as well as making decisions related to it.

Responsibilities

Although the OM is responsible for supervising and managing the daily operations, there are certain tasks that the OM is not authorized to handle or approve, and requires seeking majority owners’ approval:

  • Sale the property
  • Obtain a mortgage or refinance
  • Approve an expense over $12,500
  • Terminate or replace property management company
  • Majority owners may elect to terminate the OM

About This Property

Property Specifications

 Bedrooms3
 Bathrooms2
 Square Feet1470
 Year Built1984
 Garage Size2
 Schools Rating (on scale of A-C)B

Purchase Assumptions

Offer used for analysis$280,000
Suggested offer (low)$280,000
Suggested offer (high)$283,000
Asking$289,000
Market Value (after improvements)$300,000
Improvements (lower)$10,000
Improvements (upper)$13,000
Closing Costs$2,800
Mortgage Costs$2,800
Other Fees At Closing (pts, . . . )$3
Total Cost $297,103
Original listing date7/7/23
DOM (days on market – TODAY)24

Financial Assumptions

 MonthlyYearly
Rent (upper) $2,200$26,400
Rent (lower)$2,050$24,600
Property Tax Rate (Approx.)   
Property Taxes $260$3,120
Insurance $115$1,380
Repairs $100$1,200
Property Management Monthly (%)7.0% 
Property Management Monthly ($)$149$1,785
Leasing Fee $66.4$797
HOA or Fixed Costs$25$300
Vacancy Rate 4.0% 
Total Fixed Expenses $794$9,530
 Total Expenses (Fixed + Mortgage)$796$9,552

Financial Analysis / Deal Attractiveness

Years:51015
    
 Net Cash Flow$85,393$186,355$305,571
 Equity Increase$65,014$144,116$240,360
 Total Gain$150,406$330,471$545,930
     
 Average Cash Flow/Year$17,079$18,636$20,371
 Average Cash Flow/Month$1,423$1,553$1,698
 Average Gain/Year$30,081$33,047$36,395
 Average ROI50.7%111.3%183.9%
 Annual ROI10.1%11.1%12.3%
 Projected Property Value$364,996$444,073$540,283

Co-Owner Costs / Program Costs

 Setup Costs

 per OwnerAll
$ / owner$49,297$295,800
# of owners6.0 
Reserve funding$2,083$12,500
SDI service fee5% 
Fee$2,465$14,790
Total$53,845$323,090

 

Ongoing Costs

$/owner/mo$50
Cashflow ann. bonus5%
Selling bonus10%of the transaction profit
Refi/liquidation bonus10%of the refi amount
Ins claim bonus10%of the insurance claim approved amount

 

Per Owner Analysis

Average per yearFirst 5 yearsFirst 10 years
 Average Cash Flow/Year$1,563$1,823
 Average Cash Flow/Month$130$152
ROI (cashflow + appreciation)7%7%

 

 

 

 

 

 

 


Additional Info


    FAQ

    [sp_easyaccordion id=”58214″]

     


    DISCLAIMER

    This analysis spreadsheet 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.

    • Updated On:
    • January 24, 2024
    Property Id : 60184
    Price: $ 54,000 per owner
    Property Size: 1,470.00 ft2
    Property Lot Size: 8,276.00 ft2
    Bedrooms: 3
    Bathrooms: 2
    Year Built: 1984
    Garage: 2
    Basement: no
    External Construction: Vinyl Siding
    Roofing: new roof with 30-year shingles & roof vent (2013)
    Rent (mo): 2000
    ROI (ann): 9
    Cashflow (mo): 1425
    Property Taxes (mo): 260
    Insurance (mo): 115
    Repairs (mo): 100
    Management Fee (mo): 425
    Leasing Fee (ann): 65
    HOA (mo): 0
    Vacancy Rate (ann): 4
    Other Features
    back yard
    Basement Walkout
    Community Clubhouse
    Community pool
    fenced yard
    fireplace
    gas heat
    laundry
    Unfinished Basement
    Transport
    Supermarkets
    Schools
    Restaurants
    Pharmacies
    Hospitals
    $ 323.49
    per month
    • Principal and Interest
    • Property Tax
    • HOA fee
    $ 255.99

    Similar Listings

    CO-OWNERSHIP
    New Opportunity
    SOLD

    New Program – Co-Ownership: $53,000

    $ 53,000 per share
    This property can be purchased by one investor in a traditional ownership strategy: one ow ...
    3 1.5 1,920.00 ft2details

    Property Reviews

    You need to login in order to post a review
    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.

    Compare Listings

    Simply Do It