Cash Flow for Days on this Place!! [Code: 425]
- Recently updated units (list of unit improvements available)
- ~$1553/mo cash flow at today's rate of 6.25%
- ~$1819/mo cash flow when you can refinance to 5.0%
| After 15 Years (no mortgage) | |||
| Original purchase price | $450,000 | ||
| Total investment (out of pocket) | $135,500 | ||
| 15 yrs Project house value | $810,425 | ||
| Value (appreciation) Gain | $360,425 | ||
| 15 yrs cash-flow generated | $349,832 | ||
| Total Gain | $710,256 | ||
| ROI (15 yrs) | 524% | ||
| ROI (annually) | 35% | ||
| Free & Clear cash flow (yr.) | $55,232 | ||
| Free & Clear cash flow (m) | $4,603 | ||
- Large 3 bedroom, 2 bath units in a Multi-Family Home (Quad Plex)
- Recently renovated units
- Local agent has reached out for the following information: roof age/condition, plumbing updates, electrical updates, foundation information and HVAC updates
- No HOA fees
- This is located in the older part of town, but with good rentability. We have been conservative on the rental estimates for this opportunity
- Description says that the laundry facility is on-site in the basement, but pictures show hook-ups in the actual units. Waiting for clarification on this.
- Units are equipped with separate electricity meters.
- 6 Private off-street parking spots
- Unit A $1500 (month to month section 8), Unit B $980 (April 2023), Unit C $1200 (June 2023), Unit D $1250 (October 2023)
- $4950 (low rent estimate) is what the units are currently rented for. Upper Estimates are a conservative expectation of what they could be raised to when leases come up for renewal
- 9,488 square foot lot
Why should you consider this house / what makes it a good investment?
- Built: 1920
- Size: 5,852 square foot
- Low crime, desirable community
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: 425
| Property Specifications | 4 | Per Door |
| Bedrooms | 13 | 3 |
| Bathrooms | 8 | 2.0 |
| Square Feet | 5852 | 1463 |
| Year Built | 1920 | |
| Garage Size | 0 | |
| Schools Rating (on scale of A-C) | B/C |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $450,000 | $112,500 |
| Suggested offer (low) | $440,000 | $110,000 |
| Suggested offer (high) | $450,000 | $112,500 |
| Asking | $450,000 | $112,500 |
| Market Value (after improvements) | $450,000 | |
| Improvements (lower) | $8,000 | $2,000 |
| Improvements (upper) | $20,000 | $5,000 |
| Closing Costs | $4,500 | $1,125 |
| Mortgage Costs | $4,500 | $1,125 |
| Other Fees At Closing | $0 | |
| Total Cost | $473,000 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $112,500 | ||
| Financed Amount | $337,500 | ||
| Interest Rate (5/6 ARM) Multi-family | 6.250% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $2,078 | ||
| Cash Outlay (Total Out of Pocket) | $135,500 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $5,075 | $5,200 | $62,400 |
| Rent (lower) | $4,950 | $59,400 | |
| Property Tax Rate (Approx.) | 1.4% | ||
| Property Taxes | $300 | $3,600 | |
| Insurance | $200 | $2,400 | |
| Repairs | $400 | $4,800 | |
| Variable-Cost PM | 7.0% | ||
| Property Management Fee | $355 | $4,263 | |
| Leasing Fee | 68% | $142.7 | $1,713 |
| HOA | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $1,587 | $19,041 | |
| Total Expenses (Fixed + Mortgage) | $3,665 | $43,978 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 13.7% | 15.4% | 17.2% | 19.1% | |
| Net Cash Flow | $93,152 | $208,976 | $349,832 | $518,326 | |
| Equity Increase | $119,981 | $269,308 | $455,566 | $688,431 | |
| Total Gain | $213,133 | $478,284 | $805,398 | $1,206,756 | |
| Average Cash Flow/Year | $18,630 | $20,898 | $23,322 | $25,916 | |
| Average Cash Flow/Month | $1,553 | $1,741 | $1,944 | $2,160 | |
| Average Gain/Year | $42,627 | $47,828 | $53,693 | $60,338 | |
| Average ROI | 157.3% | 353.0% | 594.4% | 890.6% | |
| Annual ROI | 31.5% | 35.3% | 39.6% | 44.5% | |
| Projected Property Value | $547,494 | $666,110 | $810,425 | $986,005 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT |
||
| Schools | B | B/C | INSUFFICIENT | ||
| Square Feet | 1000 | 5,852 | FAVORABLE | ||
| Bedrooms | 3 | 13 | FAVORABLE | ||
| Bathrooms | 2 | 8 | FAVORABLE | ||
| Year Built | 1970 | 1920 | INSUFFICIENT | ||
| Rent/Price (%) | 0.75% | 1.16% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $1,553 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 31.5% | 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.