New Model Home Builder Lease Back Opp. – Greater Nashville – 2 Houses Available

Available models

Model B: 4 bedrooms | 2.5 Baths | 1,680 Sq Ft | 2 Car Garage

• The great room flows into the dinette and kitchen with an island.
• All of your kitchen appliances come included too!
• Upstairs, an open landing, 3 bedrooms with ample closet space and a full bath.
• Luxurious owner’s suite, with its walk-in closet and dual vanity bath
• Spacious laundry room upstairs – complete with an included washer & dryer!

Model C: 4 bedrooms | 2.5 Baths | 1,903 Sq Ft | 2 Car Garage

• Gourmet kitchen with island, and the dining area.
• Included kitchen appliances – even the fridge!
• Powder room and flex space that can be converted into a home office, hobby room, or extra play space.
• Upstairs 3 of the 4 bedrooms boast walk-in closets.
• Luxurious owner’s suite features lots of living space, a huge walk-in closet, and a double vanity bath.
• Upstairs you’ll also find the laundry room – which is complete with an included washer & dryer.

Location

Approx 30 minutes from Nashville

School are: rated between 6 – 9 (one school in the district is 5)

About These Deal

• Two properties are available
• Seller (builder) is leasing it back from buyer
  • Model B: leaseback of $3,150 per month
  • Model C: leaseback of $3,322 per month
• Buyer is responsible for:
  • HOA
  • Property taxes
  • Insurance
• Leases are one year and continues until the builder provides written notice. There will be over 200 homes in the community so builder plans be there approx 3-4 years (no guarantees)
• Repairs – the builder takes full responsibility of the property during the lease.
• Builder is offering 2% incentive towards rate
• Builder is not offering buyer’s agent commission – buyer to add 3% to selling price*:
  • Model B: $417,550 + 3% = $431,000
  • Model C: $445,660 + 3% = $459,000
    • *note: (1) builder is offering 2% incentive (if using the builder’s preferred lender). (2) We are checking with the builder about including the 3% commission in the purchase price.

Your Exit Strategy

• While this location is only about 25 miles or so from Nashville, the commute during rush hour can be can be challenging coming from that direction to Nashville.
• Simply Do It’s local team believe this area will not support high rents, in our working assumption is that after the leaseback is over the rent would be around $2,500 to $2,800 (that is in few years from now). Our local team do believe this area is good for appreciation (no guarantee).
• Your exit strategy options are:
  1. Evaluate rents when leaseback is over and see if the rent justify holding the property further.
  2. Sell the property to a local homeowner when the lease-back period is over.
  3. IMPORTANT – refinance: assuming (hoping) that the interest rates will go down, and if that happens, it presents an opportunity for you to reduce the rate by 1% to 1.5%, or possibly even more. This adjustment will be beneficial in maintaining a positive cash flow, assuming the rent will be lower than what the Builder is paying during the lease back.

Important Calculations / Benefits

• Leasing fee: $0 during lease back
• Property management fee: no need to PM – $0/month (you can still use a PM if you would like)
• Repairs: builder handles during lease back

About Leasebacks

It is common practice for builders to built 2-4 homes at the community and to use those homes as sales office/model homes. Typically, those home have multiple upgrades and many “bells & whistles” as those homes assist the builder to sale upgrades.

Model B

Analysis with Monthly Fees

Analysis without Monthly Fees

MODEL C

Analysis with Monthly Fees

Analysis without Monthly Fees

FAQ

• How much is the HOA?
  • $70/month
• Is any warranty provided?
  • We are waiting for specifics from the builder regarding it
• Can I buy with a mortgage?
  • Yes, and we have preferred lenders for you to use if you wish.
• Do you have a local property manager we can use?
  • Yes, we sure do.
• Can I buy cash?
  • Yes, of course.
• Can I buy more than 1 property?
  • Yes.
• What does the builder provide as part of the purchase?
  • We are waiting for specifics from the builder regarding it
• Would I need to purchase anything after the closing?
  • We are waiting for specifics from the builder regarding it
• Since this is a new construction am I required to hold an inspection?
  •  Required? No. Recommended? yes.

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.