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- Diamond in The Little Rough – Excellent Rental In A Very Desirable Part Of Birmingham AL – Need Some Work
Diamond in The Little Rough – Excellent Rental In A Very Desirable Part Of Birmingham AL – Need Some Work
Estimated all-in: $ 200,000
About this house
Great opportunity to own in one of Birmingham’s most desirable areas/cities!
House has a large vaulted living/family room with lots of light and a masonry fireplace.
Nice sized kitchen with a breakfast bar that opens to dining room.
Three good-sized bedrooms and 2 baths on the main level.
Main level laundry is super convenient.
The basement features a large den with kitchenette and 1/2 bath.
2 car garage has a utility sink and plenty of storage space.
Huge fenced backyard with patio.
Roof replaced in 2013.0.47 acre lot.
SDI’s Agent walk-through notes
- This house has been sitting on the market for quite some time.
- We believe it was price incorrectly and they started with a very high price.
- The house is not in bad shape but there’s definitely deferred maintenance that needs to be addressed, for example:
- Repair of the front wood stairs
- Multiple places that deciding needs to be repaired
- Repair some of the gutters, downspouts and flashing
- Power wash the entire house
- Some tree trimming and landscaping, especially on the back side.
- Possibly do some asphalt repair
- Some ceiling repair in the simplest basement ceiling
- We estimate that the word that needs to be done is approximately $25,000 to $30,000
- Due to the work needs to be done we suggest an offer price of 175,000
- This house and it’s location or worth the trouble for the right buyer.
- It sounds like the seller is motivated
Your Opportunity
Acquire a property in a highly sought-after location at a price below market value, albeit one that demands some refurbishment.
The necessary renovations lean more toward cosmetic improvements, slightly exceeding the scope of our typical projects.
Our assessment suggests that these renovations should span a period of 3 to 5 weeks.
Although a cash offer is not mandatory for this property, presenting one with the option to expedite the closing process to 3 weeks, rather than four, can strengthen our position when making a lower offer.
Next Steps:
- Let us know if you have interest in this property
- Best would be if you put your specific questions together and send it to us: meet@simplydoit.net
DIR BHM 200k code 2232
Property Financial Data
(same data as in the PDF above)
Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2.5 |
| Square Feet | 2,058 |
| Year Built | 1978 |
| Garage Size | 2 |
| Schools Rating (on scale of A-C) | A |
Purchase Assumptions | |
| Offer used for analysis | $180,000 |
| Suggested offer (low) | $180,000 |
| Suggested offer (high) | $200,000 |
| Asking | $215,000 |
| Market Value (after improvements) | $225,000 |
| Improvements (lower) | $25,000 |
| Improvements (upper) | $30,000 |
| Closing Costs | $1,800 |
| Mortgage Costs | $1,350 |
| Other Fees At Closing (pts, . . . ) | $1,350 |
| Total Cost | $212,000 |
| Original listing date | 6/13/23 |
| DOM (days on market – TODAY) | 69 |
Financing Assumptions | |
| Down Payment (%) | 25% |
| Down Payment Amount | $45,000 |
| Financed Amount | $135,000 |
| Interest Rate | | | 7.000% |
| Mortgage Term (Years) | | 30 |
| Monthly Mortgage Payment | | $898 |
| Cash Outlay (Total Out of Pocket) | | $77,000 |
| Future refi rate: | 5.250% | $745 | $153 |
Financial Assumptions | Monthly | Yearly |
| Rent (upper) | | $1,800 | $21,600 |
| Rent (lower) | $1,700 | $20,400 |
| Property Tax Rate (Approx.) | | | |
| Property Taxes | | $100 | $1,200 |
| Insurance | | $100 | $1,200 |
| Repairs | | $85 | $1,020 |
| Property Management Monthly (%) | 8.0% | |
| Property Management Monthly ($) | $83 | $1,000 |
| Leasing Fee | | $43.8 | $525 |
| HOA or Fixed Costs | $0 | $0 |
| Vacancy Rate | | 4.0% | |
| Total Fixed Expenses | | $478 | $5,741 |
| Total Expenses (Fixed+Mortgage) | $1,377 | $16,519 |
Financial Analysis / Deal Attractiveness | |
| Years: | 5 | 10 |
| | | |
| Net Cash Flow | $27,536 | $69,175 |
| Equity Increase | $56,669 | $127,209 |
| Total Gain | $84,206 | $196,383 |
| | | |
| Average Cash Flow/Year | $5,507 | $6,917 |
| Average Cash Flow/Month | $459 | $576 |
| Average Gain/Year | $16,841 | $19,638 |
| Average ROI | 109.4% | 255.0% |
| Annual ROI | 21.9% | 25.5% |
| Projected Property Value | $273,747 | $333,055 |
FAQ
- How much is the HOA?
- Can I buy with a mortgage?
- Yes, and we have preferred lenders for you to use if you wish.
-
- Do I have to use “your” lender?
- Can I buy cash?
- Can I buy more than 1 property?
-
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.
- Updated On:
- January 24, 2024
Property Id : 60747
Price: Estimated all-in: $ 200,000
Bedrooms: 3
Bathrooms: 2.5
Year Built: 1978
Garage: 2
Garage Size: Car Garage
Basement: Yes
External Construction: Vinyl Siding, Wood Siding
Rent (mo): 1650
ROI (ann): 19
Cashflow (mo): 450
Property Taxes (mo): 100
Insurance (mo): 100
Repairs (mo): 85
Management Fee (mo): 80
Leasing Fee (ann): 525
HOA (mo): 0
Vacancy Rate (ann): 4
Other Features
back yard
Basement Walkout
deck
fireplace
front yard
laundry
private space
recreation
storage
Unfinished Basement
washer and dryer
Property Reviews
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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.
