2004 Built home that needs some work – An Investors Opportunity! [Code 3618]
- Beautiful 4-sided brick home
- Updated home in a highly desired subdivision.
- Current owner preferred polished concrete floors. Crack in dining room and kitchen appears to be normal concrete wear and does not look indicative of any foundational problems
- Sits on a quiet residential street
- Grade A local school district
- No (low) crime area
- Master bath features a large, jetted tub and a separate shower
- 10,000+ sq. foot lot
- Open concept with vaulted ceilings
- Property has been on the market for 14 days already
- Floors and Kitchen need some TLC and are likely to steer buyers away as they are, which provides you a great opportunity to negotiate
- Market value is $310-$325k, but we suggest offering $300K
- Spacious, fenced backyard with covered patio
Why should you consider this house / what makes it a good investment?
- Built: 2004
- Size: 2200+ sq ft with a 10k+ sq foot lot
- Quiet street, desirable community, great schools
- Low crime
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Property Specifications |
1 |
|
Bedrooms |
5 |
|
Bathrooms |
3 |
|
Square Feet |
2243 |
|
Year Built |
2004 |
|
Garage Size |
2 |
|
Schools Rating (on scale of A-F) |
A |
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Purchase Assumptions |
My Offer |
|
Offer used for analysis |
$300,000 |
|
Suggested offer (low) |
$300,000 |
|
Suggested offer (high) |
$310,000 |
|
Asking |
$319,000 |
|
Market Value (after improvements) |
$325,000 |
|
Improvements (lower) |
$7,500 |
|
Improvements (upper) |
$9,500 |
|
Closing Costs |
$3,000 |
|
Mortgage Costs |
$3,000 |
|
Other Fees At Closing |
$12,000 |
|
Total Cost |
$326,500 |
|
Financial Analysis / Deal Attractiveness |
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|
|
|
|
|
Years: |
5 |
10 |
15 |
20 |
|
|
Cap Rate |
4.6% |
5.5% |
6.4% |
7.4% |
|
|
Net Cash Flow |
$23,426 |
$55,599 |
$97,430 |
$149,925 |
|
|
Equity Increase |
$93,594 |
$206,869 |
$343,976 |
$509,941 |
|
|
Total Gain |
$117,019 |
$262,468 |
$441,406 |
$659,866 |
|
|
|
|
|
|
|
|
|
Average Cash Flow/Year |
$4,685 |
$5,560 |
$6,495 |
$7,496 |
|
|
Average Cash Flow/Month |
$390 |
$463 |
$541 |
$625 |
|
|
Average Gain/Year |
$23,404 |
$26,247 |
$29,427 |
$32,993 |
|
|
Average ROI |
115.3% |
258.6% |
434.9% |
650.1% |
|
|
Annual ROI |
23.1% |
25.9% |
29.0% |
32.5% |
|
|
Projected Property Value |
$395,412 |
$481,079 |
$585,307 |
$712,115 |
|
|
Property Ratings Suggestions |
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Item |
|
|
Suggested Criteria (Min.) |
This Property |
FAVORABLE / |
|
Schools |
|
|
B |
A |
FAVORABLE |
|
Square Feet |
|
1000 |
2,243 |
FAVORABLE |
|
|
Bedrooms |
|
3 |
5 |
FAVORABLE |
|
|
Bathrooms |
|
2 |
3 |
FAVORABLE |
|
|
Year Built |
|
1970 |
2004 |
FAVORABLE |
|
|
Rent/Price (%) |
|
0.75% |
0.72% |
INSUFFICIENT |
|
|
Average Cash Flow (at year 5) |
$125 |
$390 |
FAVORABLE |
||
|
Average ROI (at year 5) |
15% |
23.1% |
FAVORABLE |
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Metro: Birmingham
Team: Don/Carter
Code: 3618
What’s next?
Email/text for address, analysis and to get connected to Simply Do It’s local team that handles this transaction.
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. code 711