EXCLUSIVE Off-Market Equity Deal for SDI investors – Birmingham ($175k)! [Code: 450-470]
- This property is more of an equity play as cash flow with current interest rate is on the low side
- Exclusive off-market opportunity for SDI clients only!
- ~$20K in instant equity
- When purchased in cash, at 10-years, this property is estimated to NET $211K (not including tax benefits)
- 2 neighboring houses available. Buy 1 or both!
- Both houses are tenant occupied – rented from day one
- SDI's property manager has been managing these two for about 2 months
- 3 bedroom, 2 bath Single Family Home(s)
- Great location with quick access to major commuting routes and shopping
- B- rated schools. Many families in this area access alternative school options such as private and charter schools
- Exclusive Off-Market Opportunity
- Highly sought after neighborhood
- 4,350+ square foot lot
- Currently occupied with tenants. Awaiting rental details from the local team.
- This can be financed or purchased with a cash offer
- One or Two homes can be acquired from the same seller
- Homes are next door to each other
- Each or both can be purchased cash or you can use a mortgage
- CASH is suggested for two reasons:
- Makes offer more attractive to seller
- With current interest rate cash flow at 30% down is estimated at about $1500 per year
- When refrained in the next few years to 6% this property will generate an additional $1300 per year based on current figures
Why should you consider this house / what makes it a good investment?
- Built: 2006
- Size: 1,334 square foot home
- Low Crime, Desirable Community, Great 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/Don – email directly at bir1@simplydoit.net
Code: 450-470
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2 |
| Square Feet | 1334 |
| Year Built | 2006 |
| Garage Size | 0 |
| Schools Rating (on scale of A-C) | B- |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $175,500 |
| Suggested offer (low) | $170,000 |
| Suggested offer (high) | $195,000 |
| Asking | $175,500 |
| Market Value (after improvements) | $195,000 |
| Improvements (lower) | $5,000 |
| Improvements (upper) | $12,000 |
| Closing Costs | $1,755 |
| Mortgage Costs | $0 |
| Other Fees At Closing (pts, . . . ) | $0 |
| Total Cost | $185,755 |
| Original listing date | 8/18/23 |
| DOM (days on market – TODAY) | 40 |
| Financing Assumptions | |||
| Down Payment (%) | CASH Purchase | 100% | |
| Down Payment Amount | $175,482 | ||
| Financed Amount | $18 | ||
| Interest Rate | 7.375% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $0 | ||
| Cash Outlay (Total Out of Pocket) | $185,737 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $1,425 | $1,500 | $18,000 |
| Rent (lower) | $1,350 | $16,200 | |
| Property Tax Rate (Approx.) | |||
| Property Taxes | $200 | $2,400 | |
| Insurance | $110 | $1,320 | |
| Repairs | $75 | $900 | |
| Property Management Monthly (%) | 8.0% | ||
| Property Management Monthly ($) | $114 | $1,368 | |
| Leasing Fee | 60% | $35.6 | $428 |
| HOA or Fixed Costs | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | 41% | $587 | $7,045 |
| Total Expenses (Fixed + Mortgage) | $587 | $7,046 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 5.8% | 6.3% | 6.9% | 7.6% | |
| Net Cash Flow | $53,908 | $117,852 | $193,584 | $283,146 | |
| Equity Increase | $42,248 | $93,650 | $156,188 | $232,275 | |
| Total Gain | $96,156 | $211,502 | $349,771 | $515,421 | |
| Average Cash Flow/Year | $10,782 | $11,785 | $12,906 | $14,157 | |
| Average Cash Flow/Month | $898 | $982 | $1,075 | $1,180 | |
| Average Gain/Year | $19,231 | $21,150 | $23,318 | $25,771 | |
| Average ROI | 51.8% | 113.9% | 188.3% | 277.5% | |
| Annual ROI | 10.4% | 11.4% | 12.6% | 13.9% | |
| Projected Property Value | $237,247 | $288,648 | $351,184 | $427,269 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | B- | INSUFFICIENT | ||
| Square Feet | 1,000 | 1,334 | FAVORABLE | ||
| Bedrooms | 3 | 3 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 2006 | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $898 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 10.4% | INSUFFICIENT | ||
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.