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Slam Dunk – Brand New Builder Lease Back in Nashville Metro!! [Code: Caroline]

Posted by Powered by Simply Do It on November 21, 2022
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Why THIS deal??
  • ~$769/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$148 at today's rates of 7.5%
  • Brand new MODEL HOME with builder contracted lease-back terms
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After 15 Years (no mortgage)
Original purchase price $429,990
Total investment (out of pocket) $119,647
15 yrs Project house value $846,443
Value (appreciation) Gain $416,453
15 yrs cash-flow generated $73,144
Total Gain $489,597
ROI (15 yrs) 409%
ROI (annually) 27%
   
Free & Clear cash flow (yr.) $36,550
Free & Clear cash flow (m) $3,046
  • 3 bedroom, 2.5 bath Single Family Home 
  • Great location with quick access to major commuting routes, shopping and schools
  • Guaranteed rent amount while builder is leasing back
  • There are 4 separate models being offered currently
  • Builder is responsible for all maintenance and expenses while they are leasing the property
  • A rated schools
  • The homes typically receive sod, special paint, feature upgrades not typically found in neighborhood homes. These are the most impressive homes in the subdivision – because they are the “showrooms” for the builder to sell all the lots and the available upgrades to those homes. The garages are sheet rocked, the highest finish & trim levels are installed, and the higher grade flooring is installed. The homes are maintained in showroom condition – as they must be flawless to impress buyers.
  • Attached 2-car garage
  • BRAND NEW model home with all upgrades AND builders lease back for 2-3 years


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

  • Built: 2022
  • Size: 1,775 square foot home
  • Low Crime, Desirable Community, A-Rated 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: Nashville

Team: Fred  – email directly at nash1@simplydoit.net

Code: Caroline

Property Specifications 1
 Bedrooms 3
 Bathrooms 2.5
 Square Feet 1775
 Year Built 2022
 Garage Size 2
 Schools Rating (on scale of A-C) A

Purchase Assumptions My Offer Per Door
Offer used for analysis $429,990  
Suggested offer (low) $429,990  
Suggested offer (high) $429,990  
Asking $429,990  
Market Value (after improvements) $470,000  
Improvements (lower) $400  
Improvements (upper) $700  
Closing Costs $4,300  
Mortgage Costs $4,300  
Other Fees At Closing $3,000 mtg points
Total Cost  $442,140  

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $107,498
 Financed Amount $322,493
 Interest Rate 7.500%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $2,255
 Cash Outlay (Total Out of Pocket) $119,647

Financial Assumptions Monthly Yearly
Rent (upper) $3,100 $3,100 $37,200
Rent (lower) $3,100 $37,200
Property Tax Rate (Approx.) 0.6%  
Property Taxes   $215 $2,580
Insurance   $150 $1,800
Repairs   $0 $0
Variable-Cost PM   8.0%  
Property Management Fee $248 $2,976
Leasing Fee 50% $64.6 $775
HOA     $0
Vacancy Rate   4.0%  
Total Fixed Expenses $792 $9,500
 Total Expenses (Fixed + Mortgage) $3,047 $36,559

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 1.5% 2.7% 4.1% 5.5%
 Net Cash Flow $8,857 $32,718 $73,144 $131,859
 Equity Increase $119,186 $268,301 $455,692 $692,359
 Total Gain $128,043 $301,019 $528,836 $824,217
           
 Average Cash Flow/Year $1,771 $3,272 $4,876 $6,593
 Average Cash Flow/Month $148 $273 $406 $549
 Average Gain/Year $25,609 $30,102 $35,256 $41,211
 Average ROI 107.0% 251.6% 442.0% 688.9%
 Annual ROI 21.4% 25.2% 29.5% 34.4%
 Projected Property Value $571,827 $695,715 $846,443 $1,029,828
Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A FAVORABLE
 Square Feet     1000 1,775 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2.5 FAVORABLE
 Year Built     1970 2022 FAVORABLE
 Rent/Price (%)     0.75% 0.72% INSUFFICIENT
 Average Cash Flow (at year 5)     $125 $148 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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