Perfect Beginner Investment Opportunity! [Code: 140]

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Why THIS deal??
  • ~$126/mo. cash flow once you can refi to 6.0% 
  • Cash flows at ~$61/mo. at today's rates of 6.75%

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  • Single Family Home with 3 bedrooms and 2 full bathrooms
  • Recent price drop of $19K on 6/12/2024
  • Great location with quick access to major commuting routes, shopping and schools
  • Low down payment to get into the market
  • Perfect for a beginner investor!
  • Highly appreciating area with strong rental market
  • Property has been on the market for 151 days so there could be room for negotiations
  • Good schools
  • Low HOA charges
  • #cashflow  #appreciation  #beginner

Why should you consider this house / what makes it a good investment?

  • Built: 2002
  • Size:1,469 square foot home
  • Low Crime, 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: Birmingham

Team: Carter  – email directly at birm1@simplydoit.net

Code: 140

Property Specifications 1
 Bedrooms 3
 Bathrooms 2
 Square Feet 1469
 Year Built 2002
 Garage Size 2
 Schools Rating (scale 3-30, 30 is best) 13
Lot size (sq ft)                  5,227

Purchase Assumptions My Offer
Offer used for analysis $190,000
Suggested offer (low) $185,000
Suggested offer (high) $200,000
Asking $200,000
Market Value (after improvements) $200,000
Estimated Improvements (lower) $4,000
Estimated Improvements (upper) $8,000
Estimated Closing Costs $1,900
Estimated Mortgage Costs $1,530
Other Fees At Closing (pts, . . . ) $1,330
Total Cost (estimated) $200,760

Financing Assumptions  
 Down Payment (%)   30%
 Down Payment Amount $57,000
 Financed Amount $133,000
 Interest Rate   6.750%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment 59.5% $863
 Cash Outlay (Total Out of Pocket)   $67,760

Estimated Financial Assumptions Monthly Yearly

Rent (upper)*
$1,450 $1,500 $18,000
Rent (lower)* $1,400 $16,800
       
Property Taxes   $150 $1,800
Insurance   $125 $1,500
Repairs 75 $75 $900
Property Management Monthly (%) 8.0%  
Property Management Monthly ($) $116 $1,392
Leasing Fee 60% $36.3 $435
HOA or Fixed Costs $33 $396
Vacancy Rate   4.0%  
Total Fixed Expenses 40.6% $589 $7,063
Total Expenses (Fixed + Mortgage) $1,451 $17,415

Financial Analysis / Deal Attractiveness      
Years: 5 10 15 20
 Cap Rate 1.1% 2.6% 4.3% 6.2%
 Net Cash Flow $3,649 $17,569 $43,545 $83,663
 Equity Increase $51,476 $115,599 $195,707 $296,100
 Total Gain $55,126 $133,168 $239,252 $379,763
           
 Average Cash Flow/Year $730 $1,757 $2,903 $4,183
 Average Cash Flow/Month $61 $146 $242 $349
 Average Gain/Year $11,025 $13,317 $15,950 $18,988
 Average ROI 81.4% 196.5% 353.1% 560.5%
 Annual ROI 16.3% 19.7% 23.5% 28.0%
 Projected Property Value $243,331 $296,049 $360,189 $438,225

Property Ratings Suggestions
 Item      Suggested Criteria (Min.) This Property FAVORABLE /
INSUFFICIENT
 Schools (scale of 3-30, 30 is the best)   14 13 INSUFFICIENT
 Square Feet     1,000 1,469 FAVORABLE
 Bedrooms     3 3 FAVORABLE
 Bathrooms     2 2 FAVORABLE
 Year Built     1970 2002 FAVORABLE
 Average Cash Flow (at year 5)     $125 $61 INSUFFICIENT
 Average ROI (at year 5)     15% 16.3% FAVORABLE

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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.