Check out the ROI on this find!!! [Code: 7224]
| After 15 Years (no mortgage) | |
| Original purchase price | $370,000 |
| Total investment (out of pocket) | $110,740 |
| 15 yrs Project house value | $635,733 |
| Value (appreciation) Gain | $265,733 |
| 15 yrs cash-flow generated | $228,450 |
| Total Gain | $494,183 |
| ROI (15 yrs) | 446% |
| ROI (annually) | 30% |
| Free & Clear cash flow (yr.) | $37,890 |
| Free & Clear cash flow (m) | $3,157 |
- Offers are due Monday, April 18th at 1pm (CST)
- 6 bedroom 3 bath single family residence (Duplex with two 3 bed/1.5 bath units)
- Dense suburban area with similar homes
- No (low) crime area
- This area is popular with young professionals and will most likely be your target renter
- Around $1000/mo. cash flow!
- Roof replaced approx 7 years ago
- Large Fenced-in backyard
- Many restaurants, coffee shops and parks in the area
- Property was updated in 2014
- Both units will be vacant at time of closing. No waiting to be able to increase rents to market value!
- Private schools in the area that are often utilized for families with kids
- 5,009 square foot lot
- Side retaining wall is starting to lean and needs to be stabilized. Seller has an estimate for repairs of $2,500-$4,500.
Why should you consider this house / what makes it a good investment?
- Built: 1950 (updated in 2014)
- Size: 2,668 sq ft
- Quiet residential street, Desirable community, C 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: St. Louis
Team: Alicia – email directly at stl2@simplydoit.net
Code: 7224
| Property Specifications | 2 | Per Door |
| Bedrooms – 2 Family (3 bedroom units) | 6 | 3 |
| Bathrooms -2 Family (1.5 bathroom units) | 3 | 1.5 |
| Square Feet | 2668 | |
| Year Built | 1950 | Updated 2014 |
| Garage | 2 | |
| Schools Rating (on scale of A-F) | C |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $370,000 | $185,000 |
| Suggested offer (low) | $350,000 | $175,000 |
| Suggested offer (high) | $370,000 | $185,000 |
| Asking | $350,000 | $175,000 |
| Market Value (after improvements) | $353,000 | |
| Improvements (lower) | $4,500 | $2,250 |
| Improvements (upper) | $15,000 | $7,500 |
| Closing Costs | $3,700 | |
| Mortgage Costs | $3,700 | $1,850 |
| Other Fees At Closing | $1,090 | $545 |
| Total Cost | $388,240 | $1,850 |
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper)-$2,000/mo each | $3,700 | $4,000 | $48,000 | |
| Rent (lower)-$1,700/mo each | $3,400 | $40,800 | ||
| Property Tax Rate (Approx.) | 1.4% | |||
| Property Taxes – 2021 | $410 | $4,919 | ||
| Insurance | $167 | $2,000 | ||
| Repairs | $100 | $1,200 | ||
| Variable-Cost PM | 7.5% | |||
| Property Management Fee | $278 | $3,330 | ||
| Leasing Fee | 75% | $115.6 | $1,388 | |
| HOA/Utilities | $100 | $1,200 | ||
| Vacancy Rate | 4.0% | |||
| Total Fixed Expenses | $1,307 | $15,684 | ||
| Total Expenses (Fixed + Mortgage) | $2,797 | $33,560 | ||
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 10.8% | 12.3% | 13.8% | 15.4% | |
| Net Cash Flow | $60,057 | $135,667 | $228,450 | $340,193 | |
| Equity Increase | $99,154 | $221,302 | $371,855 | $557,517 | |
| Total Gain | $159,211 | $356,969 | $600,305 | $897,710 | |
| Average Cash Flow/Year | $12,011 | $13,567 | $15,230 | $17,010 | |
| Average Cash Flow/Month | $1,001 | $1,131 | $1,269 | $1,417 | |
| Average Gain/Year | $31,842 | $35,697 | $40,020 | $44,886 | |
| Average ROI | 143.8% | 322.3% | 542.1% | 810.6% | |
| Annual ROI | 28.8% | 32.2% | 36.1% | 40.5% | |
| Projected Property Value | $429,478 | $522,526 | $635,733 | $773,466 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT |
||
| Schools | B | C | INSUFFICIENT | ||
| Square Feet | 1000 | 2,668 | FAVORABLE | ||
| Bedrooms | 3 | 6 | FAVORABLE | ||
| Bathrooms | 2 | 3 | FAVORABLE | ||
| Year Built | 1970 | 1950 | INSUFFICIENT | ||
| Rent/Price (%) | 0.75% | 1.08% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $1,001 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 28.8% | 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.