Excellent Bang for your Buck!!! [Code: 8119]

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Why THIS deal??
  • ~$369/mo. cash flow once you can refi to 4.5% 
  • Cash flows at ~$224 at today's rates of 7.5%
  • Low price point which requires smaller down payments
After 15 Years (no mortgage)
Original purchase price$165,000
Total investment (out of pocket)$64,450
15 yrs Project house value$327,772
Value (appreciation) Gain$162,772
15 yrs cash-flow generated$72,837
Total Gain$235,609
ROI (15 yrs)366%
ROI (annually)24%
Free & Clear cash flow (yr.)$16,949
Free & Clear cash flow (m)$1,412
  • 3 bedroom, 2 bath Single Family Home 
  • Great location with quick access to major commuting routes, shopping and schools
  • 32 Days on the market as of 5/2/23
  • B/C rated schools
  • No HOA charges
  • Roof is 17 years old and HVAC is 7 years old.  Sellers are firm to not deduct money for these items.
  • We suggest starting negotiations at $165K to get up to $170K+ for a final price
  • If a $170K offer is accepted, gives instant $12K in equity.

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

  • Built: 2005
  • Size: 1,200 square foot home
  • 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: Birmingham

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

Code: 8119

Property Specifications1
 Square Feet1200
 Year Built2005
 Garage Size0
 Schools Rating (on scale of A-C)B/C

Purchase AssumptionsMy OfferPer Door
Offer used for analysis$165,000 
Suggested offer (low)$165,000 
Suggested offer (high)$170,000 
Market Value (after improvements)$182,000 
Improvements (lower)$8,000 
Improvements (upper)$15,000optional
Closing Costs$1,800 
Mortgage Costs$1,650 
Other Fees At Closing$0 
Total Cost $179,950 

Financing Assumptions 
 Down Payment (%)30%
 Down Payment Amount$49,500
 Financed Amount$115,500
 Interest Rate (5/6 ARM)6.500%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$730
 Cash Outlay (Total Out of Pocket)$64,450

Financial AssumptionsMonthlyYearly
Rent (upper)$1,363$1,375$16,500
Rent (lower)$1,350$16,200
Property Tax Rate (Approx.)1.4% 
Property Taxes $125$1,500
Insurance $90$1,080
Repairs $75$900
Variable-Cost PM 7.0% 
Property Management Fee$95$1,145
Leasing Fee60%$34.1$409
HOA $0$0
Vacancy Rate 4.0% 
Total Fixed Expenses$470$5,641
 Total Expenses (Fixed + Mortgage)$1,200$14,402

Financial Analysis / Deal Attractiveness   
 Cap Rate4.2%5.8%7.5%9.5%
 Net Cash Flow$13,459$37,156$72,837$122,539
 Equity Increase$46,810$104,988$177,466$267,992
 Total Gain$60,270$142,144$250,303$390,530
 Average Cash Flow/Year$2,692$3,716$4,856$6,127
 Average Cash Flow/Month$224$310$405$511
 Average Gain/Year$12,054$14,214$16,687$19,527
 Average ROI93.5%220.5%388.4%605.9%
 Annual ROI18.7%22.1%25.9%30.3%
 Projected Property Value$221,431$269,404$327,772$398,784

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
 Square Feet  10001,200FAVORABLE
 Bedrooms  33FAVORABLE
 Bathrooms  22FAVORABLE
 Year Built  19702005FAVORABLE
 Rent/Price (%)  0.75%0.83%FAVORABLE
 Average Cash Flow (at year 5)  $125$224FAVORABLE
 Average ROI (at year 5)  15%18.7%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.