It’s BAAAAAAAAACK……Back on the Market! [Code:801]
- ~$1,117/mo. cash flow once you can refi to 5.0%
- Cash flows at ~$654 at today's rates of 7.0%
- Own 4 doors for only $115-$120K each
- This property is back on the market from being previously listed in Dec 2022. Actual days on the market is 108.
| After 15 Years (no mortgage) | |||
| Original purchase price | $480,000 | ||
| Total investment (out of pocket) | $143,600 | ||
| 15 yrs Project house value | $864,453 | ||
| Value (appreciation) Gain | $384,453 | ||
| 15 yrs cash-flow generated | $176,831 | ||
| Total Gain | $561,284 | ||
| ROI (15 yrs) | 391% | ||
| ROI (annually) | 26% | ||
| Free & Clear cash flow (yr.) | $46,386 | ||
| Free & Clear cash flow (m) | $3,866 | ||
- Fourplex with each unit having 3 bedrooms, 1.5 baths (total: 12 bedrooms and 6 bathrooms)
- 2 story townhome units
- Great location with quick access to major commuting routes, shopping and schools
- Unit A: 6/1/2022-5/31/2023. Current Rent $800/mo. Expected Rent $1200/mo.
- Unit B: 3/1/2022-2/28/2023. Current Rent $800/mo. Expected Rent $1200/mo. (pending updated figures)
- Unit C: Vacant. Expected Rent $1200/mo. (pending updated figures)
- Unit D: Will be vacant as of 12/31/2022. Expected Rent $1200/mo. (pending updated figures)
- Located at the very end of a cul de sac
- The higher end of improvement costs are for a buyer who CHOOSES to upgrade. Not necessary to make this property lease-ready.
- Currently under-rented (pending updated figures)
- We suggest starting offers at $460K and negotiating from there up to asking price.
- Sellers are looking for a full asking offer, but it has now been on the market much longer and interest rates are higher, so they might be willing to negotiate.
- Property analysis is using a full asking price for cash flow and ROI
- This property is back on the market from being previously listed in Dec 2022. Actual days on the market is 108
- B rated schools
- Tenants pay ALL utilities
- No HOA charges
- Wooded back yard area
- Each unit has a dishwasher and washer/dryer hookups
- This deal allows an investor to buy 4-doors for $115-$120K each
- 0.32 acre lot
Why should you consider this house / what makes it a good investment?
- Built: 2001
- Size: 6,000 square foot 4-plex (each unit is 1500 square feet)
- Quiet Residential Street, 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: Kansas City
Team: Meredith – email directly at kc1@simplydoit.net
Code: 801
| Property Specifications | 4 | Per Door |
| Bedrooms | 12 | 3 |
| Bathrooms | 6 | 1.5 |
| Square Feet | 6000 | 1500 |
| Year Built | 2001 | |
| Garage Size | 0 | |
| Schools Rating (on scale of A-C) | B |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $480,000 | $120,000 |
| Suggested offer (low) | $460,000 | $115,000 |
| Suggested offer (high) | $480,000 | $120,000 |
| Asking | $480,000 | $120,000 |
| Market Value (after improvements) | $480,000 | |
| Improvements (lower) | $8,000 | $2,000 |
| Improvements (upper) | $20,000 | $5,000 |
| Closing Costs | $4,800 | $1,200 |
| Mortgage Costs | $4,800 | $1,200 |
| Other Fees At Closing | $0 | |
| Total Cost | $503,600 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $120,000 | ||
| Financed Amount | $360,000 | ||
| Interest Rate (5/6 ARM) Multi-family | 7.000% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $2,395 | ||
| Cash Outlay (Total Out of Pocket) | $143,600 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $4,400 | $4,800 | $57,600 |
| Rent (lower) | $4,000 | $48,000 | |
| Property Tax Rate (Approx.) | 1.4% | ||
| Property Taxes | $325 | $3,900 | |
| Insurance | $250 | $3,000 | |
| Repairs | $300 | $3,600 | |
| Variable-Cost PM | 7.0% | ||
| Property Management Fee | $308 | $3,696 | |
| Leasing Fee | 68% | $123.8 | $1,485 |
| HOA | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $1,470 | $17,645 | |
| Total Expenses (Fixed + Mortgage) | $3,866 | $46,386 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 5.5% | 6.8% | 8.2% | 9.7% | |
| Net Cash Flow | $39,242 | $97,525 | $176,831 | $279,349 | |
| Equity Increase | $125,120 | $281,593 | $477,985 | $725,459 | |
| Total Gain | $164,362 | $379,118 | $654,817 | $1,004,808 | |
| Average Cash Flow/Year | $7,848 | $9,753 | $11,789 | $13,967 | |
| Average Cash Flow/Month | $654 | $813 | $982 | $1,164 | |
| Average Gain/Year | $32,872 | $37,912 | $43,654 | $50,240 | |
| Average ROI | 114.5% | 264.0% | 456.0% | 699.7% | |
| Annual ROI | 22.9% | 26.4% | 30.4% | 35.0% | |
| Projected Property Value | $583,993 | $710,517 | $864,453 | $1,051,739 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | B | FAVORABLE | ||
| Square Feet | 1000 | 6,000 | FAVORABLE | ||
| Bedrooms | 3 | 12 | FAVORABLE | ||
| Bathrooms | 2 | 6 | FAVORABLE | ||
| Year Built | 1970 | 2001 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 1.00% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $654 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 22.9% | FAVORABLE | ||
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.