Houston American Dream Rental

Good morning
This house is GREAT!
  • The Corner lot that sits next to a trail
  • It's zoned to good schools, and close to tons of shopping and near the outlet mall. 
  • 4 beds, 2 bath, 2075 sq ft, 2 car garage, built in 1988
  • Has a fenced back yard –  nice bonus + a large back yard and a tool shed
  • It is missing the white picket fence to make it truly an american dream home ☺
Our Suggested Buying Strategy
Asking is $300,000 BUT since it has been sitting on the market for 25+ days coupled with the fact that the seller is on of the iBuyers (like Zillow) creates a perfect opportunity timing for a strong quick offer.
Our recommended offer is $285,000
We believe that after this weekend the seller will drop the price (since it has been on the market for 25+ days) which will invite more offers and competition.
If possible, and to help support a $285k offer – make it a cash offer. Cash offer DOESN'T keep it all cash – it means buying cash and refinancing after closing.
What's next?

Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

Financial Analysis / Deal Attractiveness
Years: 5 10
 Cap Rate 4.9% 5.8%
 Net Cash Flow $20,553 $49,164
 Equity Increase $86,483 $190,995
 Total Gain $107,036 $240,160
 Average Cash Flow/Year $4,111 $4,916
 Average Cash Flow/Month $343 $410
 Average Gain/Year $21,407 $24,016
 Average ROI 126.3% 283.4%
 Annual ROI 25.3% 28.3%
 Projected Property Value $360,129 $438,152
Property Specifications 1
 Bedrooms 4
 Bathrooms 2
 Square Feet 2,076
 Year Built 1988
 Garage Size 2
 Schools Rating (on scale of 0-10) B

Suggested offer (options) $285,000
 Market Value (after improvements) $296,000
 Improvements (lower) $3,000
 Improvements (upper) $6,000
 Closing Costs $4,500
 Mortgage Costs $4,500
Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $71,250
 Financed Amount $213,750
 Interest Rate 3.40%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $948
 Cash Outlay (Total Out of Pocket) $84,750
Financial Assumptions Monthly Yearly
Rent (upper) $2,075 $2,150 $25,800
Rent (lower) $2,000 $24,000
 Property Tax Rate (Approx.) 2.29% $5,517
 Property Taxes $425 $5,100
 Insurance $110 $1,320
 Repairs $75 $940
Variable-Cost PM 0.0%  
Property Management Fee $100 $1,200
 Leasing Fee 80% $46.1 $553
 HOA $0 $640
 Vacancy Rate 4.0%  
 Total Fixed Expenses $835 $10,021
 Total Expenses (Fixed + Mortgage) $1,783 $21,397

code 7702


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.