Good Lawd…..look at this Quad! [Code: 3104]

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Why THIS deal??
  • ~$1,197/mo. cash flow once you can refi to 5.0% 
  • Cash flows at ~$709/mo. at today’s rates of 6.25% 
  • Newly listed property.  It won’t last! 
  • Fully remodeled and absolutely beautiful on the inside
 
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After 15 Years (no mortgage)
Original purchase price $825,000
Total investment (out of pocket) $229,100
15 yrs Project house value $1,485,778
Value (appreciation) Gain $660,778
15 yrs cash-flow generated $188,466
Total Gain $849,245
ROI (15 yrs) 370.69%
ROI (annually) 24.71%
Free & Clear cash flow (yr.) $66,703
Free & Clear cash flow (m) $5,559

 

  • 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
  • Very desirable location for young professionals
  • Front door faces a large 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
  • Awaiting updated details on HVAC unit ages and roof replacement from seller’s agent
  • 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
  • New Plumbing and Electrical in 2022
  • In-unit washer/dryers
  • No HOA charges
  • 4 space off-street 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

 

Purchase Assumptions My Offer Per Door
Offer used for analysis $825,000 $206,250
Suggested offer (low) $825,000 $206,250
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 $8,250
Mortgage Costs $8,250
Other Fees At Closing $350
Total Cost $847,850 $2,063

 

Financing Assumptions
 Down Payment (%) 25%
 Down Payment Amount $206,250
 Financed Amount $618,750
 Interest Rate (5/6 ARM) 6.250%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $3,810
 Cash Outlay (Total Out of Pocket) $229,100

 

Financial Assumptions Monthly Yearly
Rent (upper) $6,760 $7,000 $84,000
Rent (lower) $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 $507 $6,084
Leasing Fee 75% $211.2 $2,535
Utilities $350 $4,200
Vacancy Rate 4.0%
Total Fixed Expenses $2,418 $29,020
 Total Expenses (Fixed + Mortgage) $6,228 $74,737

 

Financial Analysis / Deal Attractiveness
Years: 5 10 15 20
 Cap Rate 3.7% 4.9% 6.3% 7.7%
 Net Cash Flow $42,516 $113,249 $215,135 $351,417
 Equity Increase $219,964 $493,731 $835,203 $1,262,119
 Total Gain $262,481 $606,980 $1,050,338 $1,613,536
 Average Cash Flow/Year $8,503 $11,325 $14,342 $17,571
 Average Cash Flow/Month $709 $944 $1,195 $1,464
 Average Gain/Year $52,496 $60,698 $70,023 $80,677
 Average ROI 114.6% 264.9% 458.5% 704.3%
 Annual ROI 22.9% 26.5% 30.6% 35.2%
 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% 0.85% FAVORABLE
 Average Cash Flow (at year 5) $125 $709 FAVORABLE
 Average ROI (at year 5) 15% 22.9% FAVORABLE

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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.