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Value-Add Hidden Gem in St. Louis Metro! [Code: 508]

Posted by Powered by Simply Do It on October 25, 2022
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Why THIS deal??
  • ~$150/mo. cash flow
  • $25K Instant equity
  • Value-Add opportunity to add an egress window and make the finished basement into an additional bedroom.  Increases rentibility by $75-$100/mo. and adds $10K in overall value
  • Our local agent currently has a house going under contract for near list price, so also shows this house will have realized value with the added basement bedroom
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After 15 Years (no mortgage)
Original purchase price $295,000
Total investment (out of pocket) $91,750
15 yrs Project house value $576,302
Value (appreciation) Gain $281,302
15 yrs cash-flow generated $57,919
Total Gain $339,221
ROI (15 yrs) 370%
ROI (annually) 25%
   
Free & Clear cash flow (yr.) $22,637
Free & Clear cash flow (m) $1,886

  • 3 bedroom, 2 bath Single Family Home 
  • Quick access to highways and shopping
  • On the market for only 10 days
  • Zero HOA fees
  • Great location with quick access to major commuting routes
  • Area undergoing appreciation and increasing rents
  • Attached 2-car garage
  • 6,534 square foot lot


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

  • Built: 2009
  • Size: 1,359 square foot building
  • 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: St. Louis

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

Code: 508


Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1359
 Year Built 2009
 Garage Size 2
 Schools Rating (on scale of A-C) A

Purchase Assumptions My Offer
Offer used for analysis $295,000
Suggested offer (low) $295,000
Suggested offer (high) $299,900
Asking $299,900
Market Value (after improvements) $320,000
Improvements (lower) $5,000
Improvements (upper) $15,000
Closing Costs $2,950
Mortgage Costs $2,950
Other Fees At Closing $2,100
Total Cost  $313,000

Financial Assumptions Monthly Yearly
Rent (upper) $2,250 $2,300 $27,600
Rent (lower) $2,200 $26,400
Property Tax Rate (Approx.) 1.2%  
Property Taxes   $290 $3,480
Insurance   $110 $1,320
Repairs   $75 $900
Variable-Cost PM   7.5%  
Property Management Fee $169 $2,025
Leasing Fee 75% $70.3 $844
HOA   $23 $276
Vacancy Rate   4.0%  
Total Fixed Expenses $820 $9,844
 Total Expenses (Fixed + Mortgage) $2,147 $25,762

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 2.1% 3.1% 4.2% 5.4%
 Net Cash Flow $9,691 $28,675 $57,919 $98,490
 Equity Increase $84,696 $189,774 $320,358 $482,928
 Total Gain $94,388 $218,450 $378,277 $581,419
           
 Average Cash Flow/Year $1,938 $2,868 $3,861 $4,925
 Average Cash Flow/Month $162 $239 $322 $410
 Average Gain/Year $18,878 $21,845 $25,218 $29,071
 Average ROI 102.9% 238.1% 412.3% 633.7%
 Annual ROI 20.6% 23.8% 27.5% 31.7%
 Projected Property Value $389,329 $473,678 $576,302 $701,159

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A FAVORABLE
 Square Feet     1000 1,359 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 2009 FAVORABLE
 Rent/Price (%)     0.75% 0.78% FAVORABLE
 Average Cash Flow (at year 5)     $125 $162 FAVORABLE
 Average ROI (at year 5)     15% 20.6% 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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