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This St. Louis Metro House has EVERYTHING! [Code: 613]

Posted by Powered by Simply Do It on August 30, 2022
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Why THIS deal??
  • ~ $230/mo. cash flow 
  • $20K instant equity if suggested offer is accepted
  • Price recently reduced by $8K on 8/11/22.  Motivated seller
  • 185 Days on the Market.  Great negotiation tool
  • Large unfinished basement that could be completed for additional square footage! 
  • Highly appreciating neighborhood
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After 15 Years (no mortgage)
Original purchase price $260,000
Total investment (out of pocket) $79,200
15 yrs Project house value $504,264
Value (appreciation) Gain $244,264
15 yrs cash-flow generated $67,551
Total Gain $311,815
ROI (15 yrs) $4
ROI (annually) $0
   
Free & Clear cash flow (yr.) $20,571
Free & Clear cash flow (m) $1,714
  • 3 bedroom, 2 bath Single Family Detached Residence
  • Fully fenced backyard with oversized deck.  Perfect for families and pets
  • Price recently reduced by $8k.  Motivated Seller! 
  • ~ $230/mo. cash flow 
  • $20K instant equity if suggested offer is accepted
  • 30 year architectural shingle roof which was replaced in 2015
  • 185 Days on the Market
  • Attached 2-car garage
  • House is vacant.  No waiting to turn over tenants
  • Large unfinished basement that could be completed for additional square footage! 
  • Quiet residential street
  • A-rated schools
  • 7,841 square foot lot


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

  • Built: 1991
  • Size: 1,477 square foot home
  • Low Crime, Desirable community, Prime residential location, A-rated school district



What's Happening in the STL Market?

We are seeing a transition from the spring market. However, it is still a highly competitive market and the housing fundamentals are still strong. Here's stats from July:

  • Average days on market only 19 (down from 21 in 2021)
  • 1.6 months supply of inventory (same as 2021)
  • Average home sold 3.5% OVER list price in July (same as 2021)
  • 2/3 homes priced between $200-350k go under contract in the first weekend 

St. Louis hasn't seen a huge slowdown because our homes are below national average, meaning higher interest rates don't impact our market as significantly has markets with $1m homes. We still are severely lacking supply with no increase in homes available and still high demand. We didn't see 40% yoy growth like other markets. Instead we saw a steady increase over the past few years that are in line with the past 10 years. Indicating our increase isn't a bubble. 

            What's next?

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

            Metro: St. Louis

            Team: Nathan – email directly at stl1@simplydoit.net

            Code: 613


            Property Specifications 1
             Bedrooms 3
             Bathrooms 2
             Square Feet 1477
             Year Built 1991
             Garage Size 2
             Schools Rating (on scale of A-C) A

            Purchase Assumptions My Offer
            Offer used for analysis $260,000
            Suggested offer (low) $260,000
            Suggested offer (high) $265,000
            Asking $272,000
            Market Value (after improvements) $280,000
            Improvements (lower) $8,000
            Improvements (upper) $10,000
            Closing Costs $2,600
            Mortgage Costs $2,600
            Other Fees At Closing $0
            Total Cost  $274,200

            Financial Assumptions Monthly Yearly
            Rent (upper) $2,100 $2,200 $26,400
            Rent (lower) $2,000 $24,000
            Property Tax Rate (Approx.) 1.0%  
            Property Taxes   $290 $3,480
            Insurance   $110 $1,320
            Repairs   $100 $1,200
            Variable-Cost PM   7.5%  
            Property Management Fee $158 $1,890
            Leasing Fee 75% $65.6 $788
            HOA   $0 $0
            Vacancy Rate   4.0%  
            Total Fixed Expenses $801 $9,610
             Total Expenses (Fixed + Mortgage) $1,923 $23,080

            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 3.5% 4.5% 5.7% 6.9%
             Net Cash Flow $13,780 $36,004 $67,551 $109,391
             Equity Increase $75,068 $167,945 $282,990 $425,668
             Total Gain $88,848 $203,949 $350,541 $535,060
                       
             Average Cash Flow/Year $2,756 $3,600 $4,503 $5,470
             Average Cash Flow/Month $230 $300 $375 $456
             Average Gain/Year $17,770 $20,395 $23,369 $26,753
             Average ROI 112.2% 257.5% 442.6% 675.6%
             Annual ROI 22.4% 25.8% 29.5% 33.8%
             Projected Property Value $340,663 $414,468 $504,264 $613,514

            Property Ratings Suggestions
             Item      Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools     B A FAVORABLE
             Square Feet     1000 1,477 FAVORABLE
             Bedrooms     3 3 FAVORABLE
             Bathrooms     2 2 FAVORABLE
             Year Built     1970 1991 FAVORABLE
             Rent/Price (%)     0.75% 0.85% FAVORABLE
             Average Cash Flow (at year 5)     $125 $230 FAVORABLE
             Average ROI (at year 5)     15% 22.4% 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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