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Think outside the box in Birmingham Metro! [Code: 419]

Posted by Powered by Simply Do It on October 26, 2022
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Why THIS deal??
  • ~$15K instant equity
  • Completely renovated.  Little to no make-ready needed to get this house rented at top dollar.
  • Cash flow breaks even until you can refinance
  • Once you're able to refinance (we used 4.5% which is a typical interest rate over the last decade) and cash flow is over $250/mo.
  • This property is right on the outskirts of neighborhoods with $500k-over million dollars homes.  Great for future comps and appreciation. 
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After 15 Years (no mortgage)
Original purchase price $345,000
Total investment (out of pocket) $97,125
15 yrs Project house value $748,206
Value (appreciation) Gain $403,206
15 yrs cash-flow generated $32,578
Total Gain $435,785
ROI (15 yrs) 448.7%
ROI (annually) 29.9%
   
Free & Clear cash flow (yr.) $23,792
Free & Clear cash flow (m) $1,983

  • 4 bedroom, 2 bath Single Family Home WITH finished attic room and storage
  • Quick access to highways and shopping
  • On the market for only 21 days.  Good Negotiation Tool
  • Rents used in property analysis are conservative
  • Price has already been dropped by $20K
  • Zero HOA fees
  • Backyard boasts a wood deck for entertaining
  • A-rated schools.  BEST in the area! 
  • Very close to shopping (walkable)
  • Area undergoing high appreciation and increasing rents
  • Detached 2-car garage
  • 7,841 square foot lot


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

  • Built: 1980
  • Size: 1,575 square foot home
  • Low Crime, Desirable Community, Great 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/Don  – email directly at bir1@simplydoit.net

Code: 419


Property Specifications 1
 Bedrooms 4
 Bathrooms 2
 Square Feet 1575
 Year Built 1980
 Garage Size 2
 Schools Rating (on scale of A-C) A

Purchase Assumptions My Offer Per Door
Offer used for analysis $345,000  
Suggested offer (low) $345,000  
Suggested offer (high) $345,000  
Asking $359,900  
Market Value (after improvements) $359,900  
Improvements (lower) $1,500  
Improvements (upper) $3,000  
Closing Costs $3,450  
Mortgage Costs $3,450  
Other Fees At Closing $1,725 0.5 point
Total Cost  $355,875  

Financial Assumptions Monthly Yearly
Rent (upper) $2,450 $2,550 $30,600
Rent (lower) $2,350 $28,200
Property Tax Rate (Approx.) 1.0%  
Property Taxes   $400 $4,800
Insurance   $125 $1,500
Repairs   $75 $900
Variable-Cost PM   8.0%  
Property Management Fee $196 $2,352
Leasing Fee 60% $61.3 $735
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $947 $11,369
 Total Expenses (Fixed + Mortgage) $2,499 $29,985

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 0.2% 1.2% 2.2% 3.4%
 Net Cash Flow $754 $11,275 $32,578 $65,787
 Equity Increase $117,406 $268,553 $463,218 $714,039
 Total Gain $118,160 $279,828 $495,796 $779,826
           
 Average Cash Flow/Year $151 $1,127 $2,172 $3,289
 Average Cash Flow/Month $13 $94 $181 $274
 Average Gain/Year $23,632 $27,983 $33,053 $38,991
 Average ROI 121.7% 288.1% 510.5% 802.9%
 Annual ROI 24.3% 28.8% 34.0% 40.1%
 Projected Property Value $459,334 $586,239 $748,206 $954,922

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A FAVORABLE
 Square Feet     1,000 1,575 FAVORABLE
 Bedrooms     3 4 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 1980 FAVORABLE
 Rent/Price (%)     0.75% 0.74% INSUFFICIENT
 Average Cash Flow (at year 5)     $125 $13 INSUFFICIENT
 Average ROI (at year 5)     15% 24.3% 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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