Have We Got a Deal for You!! [Code: 785]

Why THIS deal??
  • ~$215/mo. cash flow once you can refi to 5.25% 
  • Cash flows at ~$71/mo. at today's rates of 7.0%
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  • 4 bedroom, 2.5 bath Single Family Home
  • Satellite images show some nearby construction, but that image may not be relevant any longer.  Will need to research further during due diligence.  
  • There could be some residual construction for a potential additional subdivision.  
  • Great location with quick access to major commuting routes, shopping and schools
  • Highly appreciating area with strong rental market
  • Good schools
  • Large lot
  • 396 days on the market.  Great Negotiation tool! 
  • No HOA charges
  • #equity  #cashflow  #appreciation

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

  • Built: 2018
  • Size: 1,440 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: 785

Property Specifications1
 Square Feet1440
 Year Built2018
 Garage Size1
 Schools Rating (scale 3-30, 30 is best)17
Lot size (sq ft)                 7,405

Purchase AssumptionsMy Offer
Offer used for analysis$186,000
Suggested offer (low)$186,000
Suggested offer (high)$196,000
Market Value (after improvements)$198,500
Estimated Improvements (lower)$1,000
Estimated Improvements (upper)$2,000
Estimated Closing Costs$1,860
Estimated Mortgage Costs$1,000
Other Fees At Closing (pts, . . . )$1,000
Total Cost (estimated)$191,360

Financing Assumptions 
 Down Payment (%) 30%
 Down Payment Amount$55,800
 Financed Amount$130,200
 Interest Rate 7.000%
 Mortgage Term (Years)30
 Monthly Mortgage Payment61.9%$866
 Cash Outlay (Total Out of Pocket) $61,160

Estimated Financial AssumptionsMonthlyYearly

Rent (upper)*
Rent (lower)*$1,450$17,400
Property Taxes $114$1,364
Insurance $125$1,500
Property Management Monthly (%)8.0% 
Property Management Monthly ($)$112$1,344
Leasing Fee60%$35.0$420
HOA or Fixed Costs$38$450
Vacancy Rate 4.0% 
Total Fixed Expenses37.5%$525$6,296
Total Expenses (Fixed + Mortgage)$1,391$16,691

Financial Analysis / Deal Attractiveness   
 Cap Rate1.4%3.1%4.9%7.0%
 Net Cash Flow$4,248$18,696$45,098$85,500
 Equity Increase$50,646$113,800$192,813$292,031
 Total Gain$54,894$132,496$237,911$377,531
 Average Cash Flow/Year$850$1,870$3,007$4,275
 Average Cash Flow/Month$71$156$251$356
 Average Gain/Year$10,979$13,250$15,861$18,877
 Average ROI89.8%216.6%389.0%617.3%
 Annual ROI18.0%21.7%25.9%30.9%
 Projected Property Value$241,506$293,828$357,487$434,938

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
 Schools (scale of 3-30, 30 is the best) 1417FAVORABLE
 Square Feet  1,0001,440FAVORABLE
 Bedrooms  34FAVORABLE
 Bathrooms  22.5FAVORABLE
 Year Built  19702018FAVORABLE
 Average Cash Flow (at year 5)  $125$71INSUFFICIENT
 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.