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RARE Cash Flowing Property in Houston Metro [Code: 1139]

Posted by Powered by Simply Do It on November 17, 2022
0
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Why THIS deal??
  • ~$404/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$178 at today's rates of 7.0%
  • $50K Instant equity if aggressive suggested offer is accepted and work is completed
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After 15 Years (no mortgage)
Original purchase price $190,000
Total investment (out of pocket) $66,300
15 yrs Project house value $432,226
Value (appreciation) Gain $242,226
15 yrs cash-flow generated $53,957
Total Gain $296,183
ROI (15 yrs) 446.73%
ROI (annually) 29.78%
   
Free & Clear cash flow (yr.) $17,137
Free & Clear cash flow (m) $1,428

  • 3 bedroom, 2.5 bath Single Family Home 
  • Low HOA fees
  • Needs some TLC, but costs of rehab have been worked into the spreadsheet
  • Great location with quick access to major commuting routes
  • Aggressive suggested offer to provide $50K instant equity once work is completed!
  • B-rated schools
  • Sold AS-IS 
  • Seller will not respond to offers until 11/25/22 (7-10 days from listing on 11/15/22)
  • Attached 2-car garage
  • 6,403 square foot lot


Why should you consider this house / what makes it a good investment?

  • Built: 1997
  • Size: 2,366 square foot home
  • Low Crime, Desirable Community, Good Schools

What's next?

Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

Metro: Houston

Team: Jenny  – email directly at hou1@simplydoit.net

Code: 1139

Property Specifications 1
 Bedrooms 3
 Bathrooms 2.5
 Square Feet 2366
 Year Built 1997
 Garage Size 2
 Schools Rating (on scale of A-C) B

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $47,500
 Financed Amount $142,500
 Interest Rate  7/6 ARM 7.000%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $948
 Cash Outlay (Total Out of Pocket) $66,300

Purchase Assumptions My Offer
Offer used for analysis $190,000
Suggested offer (low) $185,000
Suggested offer (high) $190,000
Asking $192,400
Market Value (after improvements) $240,000
Improvements (lower) $10,000
Improvements (upper) $20,000
Closing Costs $1,900
Mortgage Costs $1,900
Other Fees At Closing $0
Total Cost  $208,800

Financial Assumptions Monthly Yearly
Rent (upper) $2,000 $2,100 $25,200
Rent (lower) $1,900 $22,800
Property Tax Rate (Approx.) 2.8%  
Property Taxes   $471 $5,657
Insurance   $100 $1,200
Repairs   $75 $900
Variable-Cost PM   0.0%  
Property Management Fee $100 $1,200
Leasing Fee 80% $66.7 $800
HOA   $29 $350
Vacancy Rate   4.0%  
Total Fixed Expenses $918 $11,012
 Total Expenses (Fixed + Mortgage) $1,866 $22,389

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 3.2% 4.3% 5.4% 6.6%
 Net Cash Flow $10,707 $28,448 $53,957 $88,041
 Equity Increase $60,359 $135,477 $229,251 $346,719
 Total Gain $71,066 $163,925 $283,208 $434,760
           
 Average Cash Flow/Year $2,141 $2,845 $3,597 $4,402
 Average Cash Flow/Month $178 $237 $300 $367
 Average Gain/Year $14,213 $16,392 $18,881 $21,738
 Average ROI 107.2% 247.2% 427.2% 655.7%
 Annual ROI 21.4% 24.7% 28.5% 32.8%
 Projected Property Value $291,997 $355,259 $432,226 $525,870
Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 2,366 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2.5 FAVORABLE
 Year Built     1970 1997 FAVORABLE
 Rent/Price (%)     0.75% 1.11% FAVORABLE
 Average Cash Flow (at year 5)     $125 $178 FAVORABLE
 Average ROI (at year 5)     15% 21.4% FAVORABLE

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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. 

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