Mix-use of 8 units. Ready in 2022. Strong cash-flow in metro Kansas City
For more photos, vidoes, and financial analysis – http://reistart.com/1N4NO
- 2021 Built – the building should be completed Feb. 2022
- Simply Do It CEO, Dani Beit-Or, visited the site and the building during Oct. 2021 – site visit videos below
- The building has 5 residential units on top and 3 commercial spaces on the lower level.
- Accessing the residential and the commercial are on opposite sides of the building so they don’t “interfere” with each other
- This is a commercial building and will require a commercial loan – we have terms from one lender listed below.
- The buyer is welcome to use his or her choice of lender.
- As it sits, the property is approximately 3 acres of mixed-use, with the potential to add 2 more buildings similar to the current one.
- The total Purchase Price with – read more http://reistart.com/1N4NO
Units and Rents
All units are vacant EXCEPT one commercial – read more http://reistart.com/1N4NO
Financial Analysis
| Purchase Assumptions | My Offer | Per Door |
| Asking | $1,777,000 | $222,125 |
| Suggested offer (options) | $1,777,000 | $222,125 |
| Financing Assumptions | |||
| Down Payment (%) | 30% | ||
| Down Payment Amount | $533,100 | ||
| Financed Amount | $1,243,900 | ||
| Interest Rate | 4.00% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $5,939 | ||
| Cash Outlay (Total Out of Pocket) | $621,825 | ||
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper) | $13,163 | $13,500 | $162,000 | |
| Rent (lower) | $12,825 | $153,900 | ||
| Property Tax Rate (Approx.) | 1.42% | |||
| Property Taxes | $700 | $8,400 | ||
| Insurance | $400 | $4,800 | ||
| Repairs | $400 | $4,800 | ||
| Variable-Cost PM | 7.2% | |||
| Property Management Fee | $948 | $11,372 | ||
| Leasing Fee | 68% | $370.2 | $4,442 | |
| HOA | $0 | $0 | ||
| Vacancy Rate | 10.0% | |||
| Total Fixed Expenses | $4,039 | $48,473 | ||
| Total Expenses (Fixed + Mortgage) | $9,978 | $119,735 | ||
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 6.9% | 7.8% |
| Net Cash Flow | $213,411 | $486,120 |
| Equity Increase | $503,816 | $1,117,301 |
| Total Gain | $717,227 | $1,603,420 |
| Average Cash Flow/Year | $42,682 | $48,612 |
| Average Cash Flow/Month | $3,557 | $4,051 |
| Average Gain/Year | $143,445 | $160,342 |
| Average ROI | 115.3% | 257.9% |
| Annual ROI | 23.1% | 25.8% |
| Projected Property Value | $2,161,992 | $2,630,394 |
Leasing Plan
- Since occupying 5 residential units and 2 offices (1 is already leased) may take some time we have factored in 4 months of expenses ($10,000 x 4) into the costs of the building as a way to mitigate the vacancy.
- Simply Do It already spoke to . . . – read more http://reistart.com/1N4NO
The Buyer
- Property can (and probably should) be purchased in . . . – read more http://reistart.com/1N4NO
Mortgage terms
- A newly establish LLC is ok . . . – read more http://reistart.com/1N4NO
Here is possible mortgage info based on a conversation with a local bank:
- This is considered a non-owner occupied
- Terms:
- Downpayment for a mixed-use: 20% (15 yrs amort.) to 25% (20 yrs amort.)
- ~4% interest rate
- The more is put into the escrow . . . – read more http://reistart.com/1N4NO
- The more is put into the escrow . . . – read more http://reistart.com/1N4NO
Open Item/s & Questions
- What does the warranty cover and for how long? . . . – read more http://reistart.com/1N4NO
Thank you,