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True Investors Dream in Houston! [Code: 17809]

Posted by Powered by Simply Do It on November 18, 2022
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Why THIS deal??
  • ~$450/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$235 at today's rates of 7.0%
  • $100K Instant equity if aggressive suggested offer is accepted and rehab is completed
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After 15 Years (no mortgage)
Original purchase price $180,000
Total investment (out of pocket) $76,700
15 yrs Project house value $378,198
Value (appreciation) Gain $198,198
15 yrs cash-flow generated $64,460
Total Gain $262,658
ROI (15 yrs) 342.45%
ROI (annually) 22.83%
   
Free & Clear cash flow (yr.) $17,254
Free & Clear cash flow (m) $1,438

  • 5 bedroom, 2.5 bath Single Family Home 
  • When work is complete, this could be a 6-bedroom 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, shopping and schools
  • Aggressive suggested offer to provide $100K instant equity once work is completed!
  • We will definitely want to get an inspection done right away to clarify all the work that needs to be done
  • B rated schools
  • Newly listed
  • Attached garage
  • 4,008 square foot lot


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

  • Built: 1978
  • Size: 2,397 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: 17809

Property Specifications 1
 Bedrooms 5
 Bathrooms 2.5
 Square Feet 2397
 Year Built 1978
 Garage Size 2
 Schools Rating (on scale of A-C) B

Purchase Assumptions My Offer
Offer used for analysis $180,000
Suggested offer (low) $180,000
Suggested offer (high) $200,000
Asking $210,000
Market Value (after improvements) $280,000
Improvements (lower) $18,000
Improvements (upper) $38,000
Closing Costs $1,850
Mortgage Costs $1,850
Other Fees At Closing $0
Total Cost  $211,700

Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $45,000
 Financed Amount $135,000
 Interest Rate 7/6 ARM 7.000%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $898
 Cash Outlay (Total Out of Pocket) $76,700

Financial Assumptions Monthly Yearly
Rent (upper) $1,900 $2,000 $24,000
Rent (lower) $1,800 $21,600
Property Tax Rate (Approx.) 2.4%  
Property Taxes   $332 $3,986
Insurance   $100 $1,200
Repairs   $100 $1,200
Variable-Cost PM   0.0%  
Property Management Fee $100 $1,200
Leasing Fee 80% $63.3 $760
HOA   $43 $513
Vacancy Rate   4.0%  
Total Fixed Expenses $810 $9,724
 Total Expenses (Fixed + Mortgage) $1,708 $20,502

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 3.7% 4.6% 5.6% 6.7%
 Net Cash Flow $14,159 $35,400 $64,460 $102,154
 Equity Increase $53,420 $120,005 $203,273 $307,782
 Total Gain $67,578 $155,404 $267,734 $409,936
           
 Average Cash Flow/Year $2,832 $3,540 $4,297 $5,108
 Average Cash Flow/Month $236 $295 $358 $426
 Average Gain/Year $13,516 $15,540 $17,849 $20,497
 Average ROI 88.1% 202.6% 349.1% 534.5%
 Annual ROI 17.6% 20.3% 23.3% 26.7%
 Projected Property Value $255,497 $310,851 $378,198 $460,136
Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B FAVORABLE
 Square Feet     1000 2,397 FAVORABLE
 Bedrooms     3 5 FAVORABLE
 Bathrooms     2 2.5 FAVORABLE
 Year Built     1970 1978 FAVORABLE
 Rent/Price (%)     0.75% 1.11% FAVORABLE
 Average Cash Flow (at year 5)     $125 $236 FAVORABLE
 Average ROI (at year 5)     15% 17.6% 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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