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Whoa! Look at that cash flow [Code: 5635 & 5637 & 5639]

Posted by Powered by Simply Do It on June 1, 2022
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After 15 Years (no mortgage)  
Original purchase price $400,000
Total investment (out of pocket) $135,500
15 yrs Project house value $819,429
Value (appreciation) Gain $419,429
15 yrs cash-flow generated $226,114
Total Gain $645,543
ROI (15 yrs) 476%
ROI (annually) 32%
   
Free & Clear cash flow (yr.) $40,004
Free & Clear cash flow (m) $3,334
  • 9 bedroom, 6 bathroom multi-family property (3 of 4 units are available) (Three 2-bedroom/2-bath)
  • Property has already been negotiated down to $400k (opportunity to buy 3 houses for $133k each!)
  • Around $975/mo. cash flow 
  • 1-car attached garage for each unit
  • Quiet residential street
  • Highly appreciating neighborhood
  • Cash buyer would be ideal to close by the end of June 2022
  • 1% Borrower provided commission (included in figures)
  • Tenants pay all the utilities
  • All units are currently occupied
  • HOA covers mowing services
  • Already has inspections and some contract bids available 
  • A-rated schools


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

  • Built: 2000
  • Size: 3,948 sq ft (each unit approx 1,300 sq. ft)
  • Quiet residential street, Desirable community, A-rated 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: Kansas City

            Team: Meredith – email directly at kc1@simplydoit.net

            Code: 5635 & 5637 & 5639



            Property Specifications 3 Per Door
             Bedrooms 9 3
             Bathrooms 6 2.0
             Square Feet 3948 1316
             Year Built 2000  
             Garage Size 3
             Schools Rating (on scale of A-F) A  

            Purchase Assumptions My Offer Per Door
            Offer used for analysis $400,000 $133,333
            Suggested offer (low) $400,000 $133,333
            Suggested offer (high) $402,000 $134,000
            Asking $450,000 $150,000
            Market Value (after improvements) $455,000  
            Improvements (lower) $20,000 $6,667
            Improvements (upper) $27,000 $9,000
            Closing Costs $4,000  
            Mortgage Costs $4,000 $1,333
            Other Fees At Closing $4,000 $1,333
            Total Cost  $435,500 $1,333

            Financial Assumptions Monthly Yearly
            Rent (upper) $4,125 $4,350 $52,200
            Rent (lower) $3,900 $46,800
             Property Tax Rate (Approx.) 1.4%  
             Property Taxes $408 $4,900
             Insurance $300 $3,600
             Repairs $300 $3,600
            Variable-Cost PM 7.2%  
            Property Management Fee $295 $3,539
             Leasing Fee 68% $116.0 $1,392
             HOA $26 $312
             Vacancy Rate 4.0%  
             Total Fixed Expenses $1,598 $19,182
             Total Expenses (Fixed + Mortgage) $3,255 $39,061


            Financial Analysis / Deal Attractiveness        
            Years: 5 10 15 20
             Cap Rate 8.6% 9.8% 11.1% 12.5%
             Net Cash Flow $58,380 $133,182 $226,114 $339,064
             Equity Increase $122,129 $272,666 $458,352 $687,558
             Total Gain $180,509 $405,848 $684,466 $1,026,622
                       
             Average Cash Flow/Year $11,676 $13,318 $15,074 $16,953
             Average Cash Flow/Month $973 $1,110 $1,256 $1,413
             Average Gain/Year $36,102 $40,585 $45,631 $51,331
             Average ROI 133.2% 299.5% 505.1% 757.7%
             Annual ROI 26.6% 30.0% 33.7% 37.9%
             Projected Property Value $553,577 $673,511 $819,429 $996,961

            Property Ratings Suggestions
             Item      Suggested Criteria (Min.) This Property FAVORABLE /
            INSUFFICIENT
             Schools     B A FAVORABLE
             Square Feet   1000 3,948 FAVORABLE
             Bedrooms   3 9 FAVORABLE
             Bathrooms   2 6 FAVORABLE
             Year Built   1970 2000 FAVORABLE
             Rent/Price (%)   0.75% 1.09% FAVORABLE
             Average Cash Flow (at year 5) $125 $973 FAVORABLE
             Average ROI (at year 5) 15% 26.6% 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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