“Gramma’s” House with Lots of Equity and Strong Cashflow ($550+) [code: Pensacola1]

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Dear friends,

At Simply Do It, our philosophy has always been to offer investment opportunities only in areas where we have strong, trustworthy local teams,
including realtors and property managers, to support your transaction. However, every so often, a unique opportunity arises that we feel compelled to share.

We have an off-market property in a desirable area of Pensacola, FL, that might be of interest. This large 4-bedroom, 3.5-bath, and is 2,919 sqft, home is located
about 1000 yards from Pensacola Bay and offers significant potential for value creation. Built in 1986, the house needs cosmetic updates—mainly new paint,
carpets, and flooring—but has great bones. The property is currently vacant as the elderly owners have moved out due to health reasons, and their children are
looking for a quick, hassle-free sale. Online search shows this house to have very low flood risk.

The good news: Because the property is not listed and the family is prioritizing a fast cash transaction, they are willing to sell at a deep discount. While the
market value is approximately $580K, we believe this home can be acquired for $500K or potentially less with a cash offer.

Important to note: We do not have a local realtor or property manager in Pensacola. However, through our network, we can connect you with vendors who can:

  1. Assist with renovations.
  2. Handle the property inspection.
  3. Provide detailed photos of the interior and exterior for a minimal fee, should you require them.

This is a special opportunity with an SDI fee of $15K ($22,500 for non-SDI clients). 

Don't miss out on this chance to invest in a high-potential Pensacola property. Reach out for more details or to discuss how we can help you move forward.

Price: The suggested price of $480K has not been officially approved yet, but the type of offer submitted can help persuade the seller to accept it.

The analysis below is based on 30% down-payment although the seller wants a cash offer and a qucik close. Buyer who buys cash can consider refi after closing.

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Effort Level: We consider this house to be 9/15

Property Specifications1
 Bedrooms4
 Bathrooms3
 Square Feet1917
 Year Built1985
 Garage Size1
 Schools Rating (scale 3-30, 30 is best)13
Lot size (sq ft)13,068



Purchase AssumptionsMy Offer
Offer used for analysis$480,000
Suggested offer (low)$480,000
Suggested offer (high)$480,000
Asking$480,000
Market Value (after improvements)$580,000
Day-1 Equity$100,000
Estimated Improvements (lower)$30,000
Estimated Improvements (upper)$40,000
Estimated Closing Costs$4,800
Estimated Mortgage Costs$0
Other Fees At Closing (pts, . . . )$20,000
Total Cost (estimated)$539,800



Financing Assumptions 
 Down Payment (%) 30%
 Down Payment Amount$144,000
 Financed Amount$336,000
 Interest Rate 6.000%
 Mortgage Term (Years)30
 Monthly Mortgage Payment59.7%$2,014
 Cash Outlay (Total Out of Pocket) $203,800



Estimated Financial AssumptionsMonthlyYearly
Rent (upper)* $3,450$41,400
Rent (lower)*$3,300$39,600
    
Property Taxes $350$4,200
Insurance $160$1,920
Repairs75$100$1,200
Property Management Monthly (%)0.0% 
Property Management Monthly ($)$75$900
Leasing Fee100%$140.6$1,688
HOA or Fixed Costs$0$0
Vacancy Rate 4.0% 
Total Fixed Expenses#DIV/0!$958$11,492
Total Expenses (Fixed + Mortgage)$2,972$35,665



Financial Analysis / Deal Attractiveness
Years:510
 Cap Rate3.3%4.7%
 Net Cash Flow$34,087$95,442
 Equity Increase$148,996$333,358
 Total Gain$183,083$428,800
   
 Average Cash Flow/Year$6,817$9,544
 Average Cash Flow/Month$568$795
 Average Gain/Year$36,617$42,880
 Average ROI89.8%210.4%
 Annual ROI18.0%21.0%
 Projected Property Value$705,659$858,542


Neighborhood Street View

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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.