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WHOA!! Great Cash Flow on this Houston Find!! [Code: 17139]

Posted by Powered by Simply Do It on January 11, 2023
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Why THIS deal??
  • ~$570/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$415 at today's rates of 6.125%
  • Has been on the market for 49 days.  Great negotiation tool!
  • Price dropped by $20K on 12/29/22
  • Great price point with aggressive suggested offer
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After 15 Years (no mortgage)
Original purchase price $215,000
Total investment (out of pocket) $82,800
15 yrs Project house value $423,222
Value (appreciation) Gain $208,222
15 yrs cash-flow generated $100,887
Total Gain $309,109
ROI (15 yrs) 373.32%
ROI (annually) 24.89%
   
Free & Clear cash flow (yr.) $20,257
Free & Clear cash flow (m) $1,688
  • 4 bedroom, 2.5 bathroom single family home
  • Renovated in 2000
  • Sellers disclosure available with work needing to be done.  Inspection is a must on this property
  • Some work will need to be completed and/or negotiated with seller
  • Price negotiation to start at $215K and ok to go up to $220K for best investment performance
  • Low HOA charges
  • Investor could put 25% down if desired instead of the 30% on analysis
  • Fully fenced back yard with deck.  Perfect for kids and pets! 
  • 0.27 acre lot


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

  • Built: 1980
  • Size: 1976 square foot
  • 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: 17139

Property Specifications 1 Per Door
 Bedrooms 4  
 Bathrooms 2.5  
 Square Feet 1976  
 Year Built 1980 Reno 2000
 Garage Size 2  
 Schools Rating (on scale of A-C) A/B  

Purchase Assumptions My Offer
Offer used for analysis $215,000
Suggested offer (low) $215,000
Suggested offer (high) $220,000
Asking $235,000
Market Value (after improvements) $235,000
Improvements (lower) $8,000
Improvements (upper) $20,000
Closing Costs $2,150
Mortgage Costs $2,150
Other Fees At Closing $0
Total Cost  $233,300

Financing Assumptions  
 Down Payment (%) 30%
 Down Payment Amount $64,500
 Financed Amount $150,500
 Interest Rate (5/6 ARM) 6.125%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $914
 Cash Outlay (Total Out of Pocket) $82,800

Financial Assumptions Monthly Yearly
Rent (upper) $2,150 $2,200 $26,400
Rent (lower) $2,100 $25,200
Property Tax Rate (Approx.) 2.9%  
Property Taxes   $400 $4,800
Insurance   $100 $1,200
Repairs   $100 $1,200
Variable-Cost PM   0.0%  
Property Management Fee $100 $1,200
Leasing Fee 80% $71.7 $860
HOA   $17 $204
Vacancy Rate   4.0%  
Total Fixed Expenses $871 $10,448
 Total Expenses (Fixed + Mortgage) $1,785 $21,421

Financial Analysis / Deal Attractiveness      
Years: 5 10 15 20
 Cap Rate 6.0% 7.0% 8.1% 9.3%
 Net Cash Flow $25,025 $58,366 $100,887 $153,544
 Equity Increase $61,152 $136,992 $231,217 $348,508
 Total Gain $86,177 $195,357 $332,104 $502,052
           
 Average Cash Flow/Year $5,005 $5,837 $6,726 $7,677
 Average Cash Flow/Month $417 $486 $560 $640
 Average Gain/Year $17,235 $19,536 $22,140 $25,103
 Average ROI 104.1% 235.9% 401.1% 606.3%
 Annual ROI 20.8% 23.6% 26.7% 30.3%
 Projected Property Value $285,913 $347,857 $423,222 $514,914

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B A/B FAVORABLE
 Square Feet     1000 1,976 FAVORABLE
 Bedrooms     3 4 FAVORABLE
 Bathrooms     2 2.5 FAVORABLE
 Year Built     1970 1980 FAVORABLE
 Rent/Price (%)     0.75% 1.02% FAVORABLE
 Average Cash Flow (at year 5)     $125 $417 FAVORABLE
 Average ROI (at year 5)     15% 20.8% 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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