Dream Maker Moneymaker! [Code: 4103]
- ~$1,407/mo. cash flow once you can refi to 5.0%
- Cash flows at ~$839/mo. at today's rates of 6.5%
- Back on the market from no fault of the seller
- Fully remodeled and absolutely beautiful on the inside
| After 15 Years (no mortgage) | |||
| Original purchase price | $795,000 | ||
| Total investment (out of pocket) | $221,000 | ||
| 15 yrs Project house value | $1,485,778 | ||
| Value (appreciation) Gain | $690,778 | ||
| 15 yrs cash-flow generated | $240,303 | ||
| Total Gain | $931,081 | ||
| ROI (15 yrs) | 421.30% | ||
| ROI (annually) | 28.09% | ||
| Free & Clear cash flow (yr.) | $70,094 | ||
| Free & Clear cash flow (m) | $5,841 | ||
- Fourplex with two 3 bedroom, 1 bath units and two 4 bedroom, 1 bath units
- Days on the market: 2 as of 2/3/2023
- The recent inspector said this was the “cleanest multi-family he's ever seen”!
- Very desirable location for young professionals
- Front door faces a large popular park
- No fire or flood zone
- 2 tenants will be moving soon and will give the new owner the opportunity to raise rents to market level
- Estimates for owner paid utilities is around $350/mo for water/trash/sewer (pending verification)
- Fully remodeled in 2022 which means little to no maintenance for a new buyer. We still estimated $400/mo. in the spreadsheet for conservative long-term cash flow estimates only
- New Plumbing and Electrical in 2022
- In-unit washer/dryers
- No HOA charges
- 4 space off-street private parking pad
Why should you consider this house / what makes it a good investment?
- Built: 1922 (gut rehabbed in 2022)
- Size: 4,417 square foot building
- Desirable Community, Good Schools, Highly Appreciating Neighborhood
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: Nathan – email directly at stl1@simplydoit.net
Code: 3104
| Property Specifications | 4 | Per Door |
| Bedrooms – 4 FAMILY | 14 | 3/4 bed units |
| Bathrooms – 4 FAMILY | 4 | 1.0 |
| Square Feet | 4,417 | 1104 |
| Year Built | 1922 | |
| Garage Size | 0 | 4-spaces |
| Schools Rating (on scale of A-C) | C |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $198,750 | ||
| Financed Amount | $596,250 | ||
| Interest Rate (5/6 ARM) | 6.500% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $3,769 | ||
| Cash Outlay (Total Out of Pocket) | $221,000 | ||
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $795,000 | $198,750 |
| Suggested offer (low) | $795,000 | $198,750 |
| Suggested offer (high) | $825,000 | $206,250 |
| Asking | $825,000 | $206,250 |
| Market Value (after improvements) | $825,000 | |
| Improvements (lower) | $4,000 | $1,000 |
| Improvements (upper) | $8,000 | $2,000 |
| Closing Costs | $7,950 | |
| Mortgage Costs | $7,950 | $1,988 |
| Other Fees At Closing | $350 | $88 |
| Total Cost | $817,250 | $1,988 |
| Financial Assumptions | Monthly | Yearly | |
| Rent (market) | $6,860 | $7,200 | $86,400 |
| Rent (current) | $6,519 | $78,228 | |
| Property Tax Rate (Approx.) | 2.5% | ||
| Property Taxes | $400 | $4,800 | |
| Insurance | $300 | $2,000 | |
| Repairs | $400 | $4,800 | |
| Variable-Cost PM | 7.5% | ||
| Property Management Fee | $514 | $6,174 | |
| Leasing Fee | 75% | $214.4 | $2,572 |
| Utilities Estimate | $350 | $4,200 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $2,433 | $29,191 | |
| Total Expenses (Fixed + Mortgage) | $6,201 | $74,416 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 4.6% | 5.9% | 7.2% | 8.7% | |
| Net Cash Flow | $50,329 | $129,432 | $240,303 | $386,248 | |
| Equity Increase | $216,833 | $486,975 | $824,396 | $1,247,025 | |
| Total Gain | $267,163 | $616,407 | $1,064,699 | $1,633,273 | |
| Average Cash Flow/Year | $10,066 | $12,943 | $16,020 | $19,312 | |
| Average Cash Flow/Month | $839 | $1,079 | $1,335 | $1,609 | |
| Average Gain/Year | $53,433 | $61,641 | $70,980 | $81,664 | |
| Average ROI | 120.9% | 278.9% | 481.8% | 739.0% | |
| Annual ROI | 24.2% | 27.9% | 32.1% | 37.0% | |
| Projected Property Value | $1,003,739 | $1,221,202 | $1,485,778 | $1,807,677 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | C | INSUFFICIENT | ||
| Square Feet | 1000 | 4,417 | FAVORABLE | ||
| Bedrooms | 3 | 14 | FAVORABLE | ||
| Bathrooms | 2 | 4 | FAVORABLE | ||
| Year Built | 1970 | 1922 | INSUFFICIENT | ||
| Rent/Price (%) | 0.75% | 0.91% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $839 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 24.2% | 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.