WHOA! Look at the Cash Flow on this Deal! [code: 223]
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Summary / What We Like About This One:
- Cash flow of $334/mo at today’s rate of 6.875%
Highlights
- 📍 Nashville TN Metro
- 🏠 3 Bedroom/2 Bath home
- 💰 Cash flows at $447/month once refinanced to 6.0%
- 📅 Built in 2009
- 🏫 B/C schools
Key Insights
- 🎯 Location Matters: Chattanooga suburb in a highly appreciating area
- 📈 Equity Potential: Expected equity gain of $167k at the 10-year mark
- 🏡 Comparative Advantage: Higher rent amounts in this area allow for monthly cash flow
- 📅 Market Timing: Winter is a lull in the housing market which will allow you to pay a lower price than other times of the year
- 📜 Rental Restrictions: No HOA per listing, but will need to be confirmed during due diligence
- 📏 Size: 1,769 square foot single-family detached residence
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 can be reached directly at nash1@simplydoit.net
Code: 223
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2.5 |
| Square Feet | 1769 |
| Year Built | 2009 |
| Garage Size | 1 |
| Schools Rating (scale 3-30, 30 is best) | 9 |
| Lot size (sq ft) | 6,550 |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $280,000 |
| Suggested offer (low) | $280,000 |
| Suggested offer (high) | $285,000 |
| Asking | $289,000 |
| Market Value (after improvements) | $289,000 |
| Day-1 Equity | $9,000 |
| Estimated Improvements (lower) | $3,500 |
| Estimated Improvements (upper) | $5,500 |
| Estimated Closing Costs | $2,800 |
| Estimated Mortgage Costs | $1,960 |
| Other Fees At Closing (pts, . . . ) | $1,960 |
| Total Cost (estimated) | $291,220 |
| Financing Assumptions | |||
| Down Payment (%) | 30% | ||
| Down Payment Amount | $84,000 | ||
| Financed Amount | $196,000 | ||
| Interest Rate | 6.875% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | 57.9% | $1,288 | |
| Cash Outlay (Total Out of Pocket) | $95,220 | ||
| Estimated Financial Assumptions | Monthly | Yearly | |
| Rent (upper)* | $2,225 | $2,350 | $28,200 |
| Rent (lower)* | $2,100 | $25,200 | |
| * Can fluctuate depending on time of year property is being rented. | |||
| Property Taxes | $200 | $2,400 | |
| Insurance | $125 | $1,500 | |
| Repairs | 75 | $75 | $900 |
| Property Management Monthly (%) | 8.0% | ||
| Property Management Monthly ($) | $178 | $2,136 | |
| Leasing Fee | 50% | $46.4 | $556 |
| HOA or Fixed Costs | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | 31.7% | $706 | $8,475 |
| Total Expenses (Fixed + Mortgage) | $1,994 | $23,926 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 4.2% | 6.0% | 8.0% | 10.2% | |
| Net Cash Flow | $20,068 | $57,176 | $114,197 | $194,480 | |
| Equity Increase | $74,363 | $167,096 | $283,101 | $428,722 | |
| Total Gain | $94,431 | $224,272 | $397,298 | $623,202 | |
| Average Cash Flow/Year | $4,014 | $5,718 | $7,613 | $9,724 | |
| Average Cash Flow/Month | $334 | $476 | $634 | $810 | |
| Average Gain/Year | $18,886 | $22,427 | $26,487 | $31,160 | |
| Average ROI | 99.2% | 235.5% | 417.2% | 654.5% | |
| Annual ROI | 19.8% | 23.6% | 27.8% | 32.7% | |
| Projected Property Value | $351,613 | $427,791 | $520,473 | $633,235 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT |
||
| Schools (scale of 3-30, 30 is the best) | 14 | 9 | INSUFFICIENT | ||
| Square Feet | 1,000 | 1,769 | FAVORABLE | ||
| Bedrooms | 3 | 3 | FAVORABLE | ||
| Bathrooms | 2 | 2.5 | FAVORABLE | ||
| Year Built | 1970 | 2009 | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $334 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 19.8% | FAVORABLE | ||
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.