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Take a Look at this Instant Equity Opportunity! [Code: 1183]

Posted by Powered by Simply Do It on October 6, 2022
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Why THIS deal??
  • Been on the market for 57 days.  Great for price negotiation
  • ~$100/mo cash flow
  • If suggested offer is accepted, you walk into this deal with almost $20K in instant equity
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After 15 Years (no mortgage)
Original purchase price $200,000
Total investment (out of pocket) $58,250
15 yrs Project house value $396,027
Value (appreciation) Gain $196,027
15 yrs cash-flow generated $35,417
Total Gain $231,444
ROI (15 yrs) 397.3%
ROI (annually) 26.5%
   
Free & Clear cash flow (yr.) $14,888
Free & Clear cash flow (m) $1,241

  • 3 bedroom, 2 bath Single Family Home
  • Good school district
  • Low HOA fees
  • Hard flooring throughout
  • The community comes with sidewalks and streetlights, Olympic size community pool, tennis court, basketball court, club house, stocked lake for fishing and walking trails
  • Highly appreciating neighborhood
  • Attached 1-car garage
  • 4,792 square foot lot


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

  • Built: 2003
  • Size: 1,406 square foot 
  • Low Crime, desirable community, B 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: Birmingham

Team: Carter – email directly at bir1@simplydoit.net

Code: 1183


Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1406
 Year Built 2003
 Garage Size 1
 Schools Rating (on scale of A-C) B

Purchase Assumptions My Offer
Offer used for analysis $200,000
Suggested offer (low) $200,000
Suggested offer (high) $200,000
Asking $219,900
Market Value (after improvements) $219,900
Improvements (lower) $1,000
Improvements (upper) $5,500
Closing Costs $2,000
Mortgage Costs $2,000
Other Fees At Closing $1,000
Total Cost  $208,250

Financial Assumptions Monthly Yearly
Rent (upper) $1,500 $1,600 $19,200
Rent (lower) $1,400 $16,800
Property Tax Rate (Approx.) 1.0%  
Property Taxes   $130 $1,560
Insurance   $110 $1,320
Repairs   $75 $900
Variable-Cost PM   8.0%  
Property Management Fee $120 $1,440
Leasing Fee 60% $37.5 $450
HOA   $32 $384
Vacancy Rate   4.0%  
Total Fixed Expenses $560 $6,716
 Total Expenses (Fixed + Mortgage) $1,447 $17,364

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 1.9% 2.9% 4.1% 5.3%
 Net Cash Flow $5,482 $17,075 $35,417 $61,208
 Equity Increase $58,278 $130,499 $220,133 $331,553
 Total Gain $63,760 $147,575 $255,550 $392,761
           
 Average Cash Flow/Year $1,096 $1,708 $2,361 $3,060
 Average Cash Flow/Month $91 $142 $197 $255
 Average Gain/Year $12,752 $14,757 $17,037 $19,638
 Average ROI 109.5% 253.3% 438.7% 674.3%
 Annual ROI 21.9% 25.3% 29.2% 33.7%
 Projected Property Value $267,542 $325,506 $396,027 $481,828


Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1,000 1,406 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 2003 FAVORABLE
 Rent/Price (%)     0.75% 0.80% FAVORABLE
 Average Cash Flow (at year 5)     $125 $91 INSUFFICIENT
 Average ROI (at year 5)     15% 21.9% 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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