Mix-use of 8 units. Ready in 2022. Strong cash-flow in metro Kansas City

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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 AssumptionsMy OfferPer 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 Rate4.00%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$5,939
 Cash Outlay (Total Out of Pocket)$621,825

Financial AssumptionsMonthlyYearly
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 PM7.2% 
Property Management Fee$948$11,372
 Leasing Fee68%$370.2$4,442
 HOA$0$0
 Vacancy Rate10.0% 
 Total Fixed Expenses$4,039$48,473
 Total Expenses (Fixed + Mortgage)$9,978$119,735
Financial Analysis / Deal Attractiveness
Years:510
 Cap Rate6.9%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 ROI115.3%257.9%
 Annual ROI23.1%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

Mortgage terms

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

Open Item/s & Questions

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