4-Unit fully leased with great cash flow [Code: 4051-4055]
- Over $945/mo. cashflow
- Property has been on the market 13+ days
- 4 Giant two bedroom units
- New Kitchens with quartz countertops and stainless appliances, new baths, Washer/Dryer in unit, Newer Windows, Lots of new plumbing, Central HVAC with newer furnaces
- Off street parking. Right down the street from Sasha's on Shaw
- The location is prime – located in the close to St Louis University Med school, it's new hospital, dental school, and Cardinal Glennon Children's hospital as well as Tower Grove Park, the Missouri Botanical Garden and an easy drive to every walkable neighborhood
- Lower rent is the actual leased amount. Added $100 per unit for the upper rent estimate
- This building should operate at zero vacancy and has potential to be split into short-term rental mixed with long term (typically long term at top two floors and short term on bottom two floors). Did not adjust vacancy rate on spreadsheet to be conservative
- Ideal tenant would be double income/no children – making school rating less important
- No (low) crime area
- 5,700+ sq. foot lot
Why should you consider this house / what makes it a good investment?
- Built: 1916 with full remodel – New Kitchens with quartz countertops and stainless appliances, new baths, Washer/Dryer in unit, Newer Windows, Lots of new plumbing, Central HVAC with newer furnaces
- Size: 4,576+ sq ft on over 5,700 square foot lot
- Quiet residential street, Desirable community, Walkability score of 59
- Turnkey property in wonderful condition
What's next?
Email/text Simply Do It or the Agent for address, analysis and to get connected to Simply Do It's local team that handles this transaction.
Metro: St. Louis
Team: Alicia – email her directly: stl2@simplydoit.net
Code: 4051-4055
| Snapshot in 15 Years – when mortgage is paid off | ||
| Original purchase price | $795,000 | |
| Total investment (out of pocket) | $222,750 | |
| 15 yrs Project house value | $1,431,750 | |
| Value (appreciation) Gain | $636,750 | |
| 15 yrs cash-flow generated | $241,598 | |
| Total Gain | $878,348 | |
| ROI (15 yrs) | 394% | |
| ROI (annually) | 26% | |
| Free & Clear cash flow (yr.) | $55,894 | |
| Free & Clear cash flow (m) | $4,658 |
* Annual cash flow from the property when mortgage is paid off
* Monthly cash flow from the property when mortgage is paid off
| Property Specifications | 4 | Per Door |
| Bedrooms | 2 | 1 |
| Bathrooms | 1 | 0.3 |
| Square Feet | 4576 | 1144 |
| Year Built | 1916 | |
| Garage Size | 0 | |
| Schools Rating (on scale of A-F) | C |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $795,000 | $198,750 |
| Suggested offer (low) | $790,000 | |
| Suggested offer (high) | $800,000 | |
| Asking | $795,000 | $198,750 |
| Market Value (after improvements) | $795,000 | |
| Improvements (lower) | $6,000 | $1,500 |
| Improvements (upper) | $8,000 | $2,000 |
| Closing Costs | $8,000 | |
| Mortgage Costs | $8,000 | $2,000 |
| Other Fees At Closing | $1,000 | $250 |
| Total Cost | $819,000 | $2,000 |
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper) | $5,780 | $5,980 | $71,760 | |
| Rent (lower) | $5,580 | $66,960 | ||
| Property Tax Rate (Approx.) | 0.68 | |||
| Property Taxes | $515 | $6,180 | ||
| Insurance | $500 | $6,000 | ||
| Repairs | $300 | $3,600 | ||
| Variable-Cost PM | 7.5% | |||
| Property Management Fee | $434 | $5,202 | ||
| Leasing Fee | 75% | $180.6 | $2,168 | |
| HOA | $0 | $0 | ||
| Vacancy Rate | 6.0% | |||
| Total Fixed Expenses | $2,250 | $26,999 | ||
| Total Expenses (Fixed + Mortgage) | $4,978 | $59,730 | ||
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 5.1% | 6.1% | 7.2% | 8.4% | |
| Net Cash Flow | $56,792 | $136,529 | $241,598 | $374,637 | |
| Equity Increase | $232,303 | $513,927 | $855,357 | $1,269,309 | |
| Total Gain | $289,095 | $650,456 | $1,096,955 | $1,643,946 | |
| Average Cash Flow/Year | $11,358 | $13,653 | $16,107 | $18,732 | |
| Average Cash Flow/Month | $947 | $1,138 | $1,342 | $1,561 | |
| Average Gain/Year | $57,819 | $65,046 | $73,130 | $82,197 | |
| Average ROI | 129.8% | 292.0% | 492.5% | 738.0% | |
| Annual ROI | 26.0% | 29.2% | 32.8% | 36.9% | |
| Projected Property Value | $967,239 | $1,176,794 | $1,431,750 | $1,741,943 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | C | INSUFFICIENT | ||
| Square Feet | 1000 | 4,576 | FAVORABLE | ||
| Bedrooms | 3 | 2 | INSUFFICIENT | ||
| Bathrooms | 2 | 1 | INSUFFICIENT | ||
| Year Built | 1970 | 1916 | INSUFFICIENT | ||
| Rent/Price (%) | 0.75% | 0.75% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $947 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 26.0% | 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.