- Home
- House, Rental
- Co-Ownership: $55,745 per share. Birmingham – Colonial Style
Co-Ownership: $55,745 per share. Birmingham – Colonial Style
This property can be purchased by one investor in a traditional ownership strategy: one owner, cash or mortgaged. Read more here
Property Details & Analysis
| | |
| Bedrooms | 3 |
| Bathrooms | 2.5 |
| Square Feet | 2438 |
| Year Built | 1987 |
| Garage Size | 2 |
| Schools Rating (on scale of A-C) | B |
Purchase Assumptions | Offer Details |
| Offer used for analysis | $240,000 |
| Suggested offer (low) | $240,000 |
| Suggested offer (high) | $250,000 |
| Asking | $260,000 |
| Market Value (after improvements) | $260,000 |
| Improvements (lower) | $4,500 |
| Improvements (upper) | $8,500 |
| Closing Costs | $2,400 |
| Mortgage Costs | $2,400 |
| Other Fees At Closing | $0 |
| Total Cost | $251,300 |
| Original listing date | 3/30/2023 |
Co-Ownership Financing: 100% cash (no mortgage)
Financial Assumptions | Monthly | Yearly |
| Rent (upper) | | $1,600 | $19,200 |
| Rent (lower) | $1,500 | $18,000 |
| Property Tax Rate (Approx.) | | | |
| Property Taxes | | $120 | $1,440 |
| Insurance | | $95 | $1,140 |
| Repairs | | $70 | $840 |
| Variable-Cost PM | | 8.0% | |
| Property Management Fee | $425 | $5,100 |
| Leasing Fee | | $38.8 | $465 |
| HOA | | $0 | $0 |
| Vacancy Rate | | 4.0% | |
| Total Fixed Expenses | | $505 | $6,057 |
| Total Expenses (Fixed + Mortgage) | $505 | $6,057 |
Financial Analysis / Deal Attractiveness | |
| Years: | 5 | 10 |
| | | |
| Net Cash Flow | $47,222 | $99,359 |
| Equity Increase | $56,330 | $124,864 |
| Total Gain | $103,552 | $224,222 |
| | | |
| Average Cash Flow/Year | $9,444 | $9,936 |
| Average Cash Flow/Month | $787 | $828 |
| Average Gain/Year | $20,710 | $22,422 |
| Average ROI | 41.2% | 89.2% |
| Annual ROI | 8.2% | 8.9% |
| Projected Property Value | $316,330 | $384,864 |
What is Co-Ownership
Program Highlights
- Multiple owners
- Cash purchase
- Operation manager handles the day-to-day activities
- Less hassle -> more passive
- Long term hold
- Organized as an LLC
Benefits
- Lower cash requirement
- “Out-sourced” main activities to a professional
- Higher cash flow
Program Costs
Costs vary from one property to another and are also impacted by the number of members (shares) involved w the deal.
| | Per Share | Whole Group |
| Setup Costs | | |
| $/ share | $50,000 | $250,900 |
| # of shares | 5.0 | |
| Reserve funding | $2,491 | $12,500 |
| SDI service fee | 7% | |
| Fee | $3,250 | $16,309 |
| Total | $55,741 | $279,709 |
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 co.
- Majority owners may elect to terminate the OM
Additional Info
FAQ
[sp_easyaccordion id=”58214″]
- Updated On:
- November 7, 2023
Property Id : 58397
Price: $ 55,745 per share
Property Size: 2,438.00 ft2
Property Lot Size: 23,522.00 ft2
Bedrooms: 3
Bathrooms: 2.5
Year Built: 1987
Garage: 2
Basement: no
External Construction: Vinyl Siding
Rent (mo): 1700
ROI (ann): 9
Cashflow (mo): 1100
Property Taxes (mo): 120
Insurance (mo): 95
Repairs (mo): 70
Management Fee (mo): 425
Leasing Fee (ann): 465
HOA (mo): 0
Vacancy Rate (ann): 4
Other Features
back yard
covered patio
deck
fenced yard
fireplace
fireplace, backyard, fenced yard
front yard
laundry
private space
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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.
