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Whoa!! Look at the cashflow on this one! [Code: 3749]

Posted by Powered by Simply Do It on September 23, 2022
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Why THIS deal??
  • Property has been on the market for 90 days.  Definite room for price negotiation!
  • ~$470/mo cash flow
  • Suggest offer is aggressive to provide instant equity to the investor
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After 15 Years (no mortgage)
Original purchase price $262,475
Total investment (out of pocket) $82,180
15 yrs Project house value $515,070
Value (appreciation) Gain $252,595
15 yrs cash-flow generated $116,660
Total Gain $369,255
ROI (15 yrs) 449%
ROI (annually) 30%
   
Free & Clear cash flow (yr.) $24,894
Free & Clear cash flow (m) $2,074

  • 3 bedroom, 2.5 bath Single Family Home
  • Selling As-Is
  • Many A-rated local private and charter schools located nearby 
  • Easy access to 2 nearby highways.  Great for commuters working downtown
  • We are assuming there is work inside that needs to be done in order to make this property lease-ready, but will not have full details until an inspection is done
  • Quiet residential street in safe subdivision
  • There is a telephone poll located near the sidewalk towards the front/side of the home
  • No HOA fees
  • Highly appreciating neighborhood
  • Property has been on the market for 90 days.   GREAT Negotiation tool!!
  • 0.24 Acre lot


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

  • Built: 1986
  • Size: 1,925 square foot 
  • Low Crime, desirable community, A/B 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: Nashville

Team: Fred – email directly at nash1@simplydoit.net

Code: 3749


Property Specifications 1
 Bedrooms 3
 Bathrooms 2.5
 Square Feet 1211
 Year Built 1986
 Garage Size 0
 Schools Rating (on scale of A-C) B/C

Purchase Assumptions My Offer
Offer used for analysis $262,475
Suggested offer (low) $262,475
Suggested offer (high) $269,500
Asking $294,900
Market Value (after improvements) $286,000
Improvements (lower) $9,000
Improvements (upper) $11,000
Closing Costs $2,625
Mortgage Costs $3,936
Other Fees At Closing $0
Total Cost  $279,036


Financial Assumptions Monthly Yearly
Rent (upper) $2,200 $2,250 $27,000
Rent (lower) $2,150 $25,800
Property Tax Rate (Approx.) 0.6%  
Property Taxes   $150 $1,800
Insurance   $100 $1,200
Repairs   $75 $900
Variable-Cost PM   8.0%  
Property Management Fee $176 $2,112
Leasing Fee 50% $45.8 $550
HOA   $0 $0
Vacancy Rate   4.0%  
Total Fixed Expenses $628 $7,534
 Total Expenses (Fixed + Mortgage) $1,792 $21,507

Financial Analysis / Deal Attractiveness        
Years: 5 10 15 20
 Cap Rate 6.9% 8.1% 9.5% 10.9%
 Net Cash Flow $28,313 $66,845 $116,660 $178,931
 Equity Increase $75,921 $170,019 $286,821 $432,034
 Total Gain $104,234 $236,864 $403,480 $610,965
           
 Average Cash Flow/Year $5,663 $6,685 $7,777 $8,947
 Average Cash Flow/Month $472 $557 $648 $746
 Average Gain/Year $20,847 $23,686 $26,899 $30,548
 Average ROI 126.8% 288.2% 491.0% 743.5%
 Annual ROI 25.4% 28.8% 32.7% 37.2%
 Projected Property Value $347,963 $423,350 $515,070 $626,661

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools     B B/C INSUFFICIENT
 Square Feet     1000 1,211 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2.5 FAVORABLE
 Year Built     1970 1986 FAVORABLE
 Rent/Price (%)     0.75% 0.86% FAVORABLE
 Average Cash Flow (at year 5)     $125 $472 FAVORABLE
 Average ROI (at year 5)     15% 25.4% 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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