Off market 3-2 garden home in Birmingham with a strong tenant

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Good morning and happy weekend,
  • This property is managed by SDI's property manager partner in metro Birmingham and is being offered for sale by one of their clients (non-SDI)
  • Property manager states that this has been a good rental area and that it has a quality tenant in it. 
  • At the moment this is an off-market property
What's next?
Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

Property Specifications 
 Bedrooms3
 Bathrooms2
 Square Feet1466
 Year Built2006
 Garage Size2
 Schools Rating (on scale of A to B-)B
Purchase AssumptionsMy Offer
Asking$205,900
Suggested offer (low)$200,000
Suggested offer (high)$205,000
Suggested offer (options)$205,000
 Market Value (after improvements)$205,000
 Improvements (lower)$3,000
 Improvements (upper)$5,000
 Closing Costs$2,500
 Mortgage Costs$2,500
 Total Cost $214,000
Financing Assumptions 
 Down Payment (%)25%
 Down Payment Amount$51,250
 Financed Amount$153,750
 Interest Rate3.40%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$682
 Cash Outlay (Total Out of Pocket)$60,250

Financial AssumptionsMonthlyYearly
Rent (upper)$1,550$1,800$21,600
Rent (lower)$1,300$15,600
 Property Tax Rate (Approx.)1.10% 
 Property Taxes$153$1,836
 Insurance$100$1,200
 Repairs$100$1,200
Variable-Cost PM8.0% 
Property Management Fee$124$1,488
 Leasing Fee60%$38.8$465
 HOA$15$180
 Vacancy Rate4.0% 
 Total Fixed Expenses$588$7,053
 Total Expenses (Fixed + Mortgage)$1,287$15,442

Financial Analysis / Deal Attractiveness
Years:510
 Cap Rate6.4%7.4%
 Net Cash Flow$19,177$44,609
 Equity Increase$60,493$133,583
 Total Gain$79,670$178,191
   
 Average Cash Flow/Year$3,835$4,461
 Average Cash Flow/Month$320$372
 Average Gain/Year$15,934$17,819
 Average ROI132.2%295.8%
 Annual ROI26.4%29.6%
 Projected Property Value$249,414$303,450
What's next?
Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

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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.

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