Equity Buy in Birmingham! [Code: 385]

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Why THIS deal??
  • ~$316/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$76 at today's rates of 6.875%
  • This is an equity buy that gives you $22K in value
After 15 Years (no mortgage)
Original purchase price$228,000
Total investment (out of pocket)$75,700
15 yrs Project house value$450,236
Value (appreciation) Gain$222,236
15 yrs cash-flow generated$35,444
Total Gain$257,680
ROI (15 yrs)340.4%
ROI (annually)22.7%
Free & Clear cash flow (yr.)$17,104
Free & Clear cash flow (m)$1,425
  • 3 bedroom, 2 bath Single Family Home 
  • Great location with quick access to major commuting routes, shopping and schools
  • B rated schools
  • No HOA charges
  • Pull-down stairs to attic located in garage
  • We have already been in contact with the sellers and they have agreed to a price negotiation of $232K, but we think they might consider a drop to $228K with the right offer. 
  • This home would normally sell for $250K if interest rates were lower, so the seller is willing to make concessions for the market conditions.  This provides the buyer with good equity immediately.
  • NEW ROOF is being installed
  • NEW water heater
  • NEW dishwasher
  • NEW carpet
  • Price reduced by $8K on 3/15/23
  • Attached 2-car garage
  • Quiet residential neighborhood

Why should you consider this house / what makes it a good investment?

  • Built: 2001
  • Size: 1,282 square foot home
  • Low Crime, Desirable Community, B-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: Birmingham

Team: Carter – email directly at bir1@simplydoit.net

Code: 385

Property Specifications1
 Square Feet1282
 Year Built2001
 Garage Size2
 Schools Rating (on scale of A-C)B

Purchase AssumptionsMy Offer
Offer used for analysis$228,000
Suggested offer (low)$228,000
Suggested offer (high)$232,000
Market Value (after improvements)$250,000
Improvements (lower)$2,000
Improvements (upper)$6,000
Closing Costs$1,650
Mortgage Costs$1,650
Other Fees At Closing$0
Total Cost $235,300

Financing Assumptions 
 Down Payment (%)30%
 Down Payment Amount$68,400
 Financed Amount$159,600
 Interest Rate 6.875%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$1,048
 Cash Outlay (Total Out of Pocket)$75,700

Financial AssumptionsMonthlyYearly
Rent (upper)$1,550$1,600$19,200
Rent (lower)$1,500$18,000
Property Tax Rate (Approx.)1.0% 
Property Taxes $90$1,080
Insurance $100$1,200
Repairs $60$720
Variable-Cost PM 8.0% 
Property Management Fee$124$1,488
Leasing Fee60%$38.8$465
HOA $0$0
Vacancy Rate 4.0% 
Total Fixed Expenses$470$5,637
 Total Expenses (Fixed + Mortgage)$1,518$18,219

Financial Analysis / Deal Attractiveness   
 Cap Rate1.2%2.1%3.1%4.2%
 Net Cash Flow$4,550$16,121$35,444$63,325
 Equity Increase$63,732$143,110$242,277$366,579
 Total Gain$68,282$159,231$277,721$429,904
 Average Cash Flow/Year$910$1,612$2,363$3,166
 Average Cash Flow/Month$76$134$197$264
 Average Gain/Year$13,656$15,923$18,515$21,495
 Average ROI90.2%210.3%366.9%567.9%
 Annual ROI18.0%21.0%24.5%28.4%
 Projected Property Value$304,163$370,061$450,236$547,781

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
 Square Feet  1,0001,282FAVORABLE
 Bedrooms  33FAVORABLE
 Bathrooms  22FAVORABLE
 Year Built  19702001FAVORABLE
 Rent/Price (%)  0.75%0.70%INSUFFICIENT
 Average Cash Flow (at year 5)  $125$76INSUFFICIENT
 Average ROI (at year 5)  15%18.0%FAVORABLE



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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.