Rare Off-Market Opportunity!! [Code: 813]
- ~$356/mo. cash flow once you can refi to 4.5%
- Cash flows at ~$130 at today’s rates of 6.875%
- Low price point which requires smaller down payments
- Off Market Opportunity!
| After 15 Years (no mortgage) | |
| Original purchase price | $200,000 |
| Total investment (out of pocket) | $61,000 |
| 15 yrs Project house value | $450,236 |
| Value (appreciation) Gain | $250,236 |
| 15 yrs cash-flow generated | $45,103 |
| Total Gain | $295,339 |
| ROI (15 yrs) | 484% |
| ROI (annually) | 32% |
| Free & Clear cash flow (yr.) | $16,975 |
| Free & Clear cash flow (m) | $1,415 |
- 3 bedroom, 2 bath Single Family Home
- Great location with quick access to major commuting routes, shopping and schools and a strong rental market
- Off Market Opportunity
- A/B rated schools
- No HOA charges
- 2-car attached garage
- Full Disclosure: Local broker has a minority ownership in this home with a group of investors, who are looking to sell and reinvest their proceeds.
- New HVAC installed in 2022
- Metal roof (long lasting and durable)
- Rough estimate of defer maintenance is about $25k, but nothing major or that needs to be done immediately
- Fully leased property
Why should you consider this house / what makes it a good investment?
- Built: 1976
- Size: 1,986 square foot home
- Low Crime, Desirable Community, Good 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 bir1@simplydoit.net
Code: 813
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2 |
| Square Feet | 1986 |
| Year Built | 1976 |
| Garage Size | 2 |
| Schools Rating (on scale of A-F) | A/B |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $200,000 |
| Suggested offer (low) | $200,000 |
| Suggested offer (high) | $205,000 |
| Asking | $230,000 |
| Market Value (after improvements) | $250,000 |
| Improvements (lower) | $5,500 |
| Improvements (upper) | $8,500 |
| Closing Costs | $2,000 |
| Mortgage Costs | $2,000 |
| Other Fees At Closing | $0 |
| Total Cost | $211,000 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $50,000 | ||
| Financed Amount | $150,000 | ||
| Interest Rate (5/6 ARM) | 6.875% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $985 | ||
| Cash Outlay (Total Out of Pocket) | $61,000 | ||
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper) | $1,663 | $1,750 | $21,000 | |
| Rent (lower) | $1,575 | $18,900 | ||
| Property Taxes | $190 | $2,280 | ||
| Insurance | $95 | $1,140 | ||
| Repairs | $85 | $1,020 | ||
| Variable-Cost PM | 8.0% | |||
| Property Management Fee | $133 | $1,596 | ||
| Leasing Fee | 60% | $41.6 | $499 | |
| HOA | $0 | $0 | ||
| Vacancy Rate | 3.0% | |||
| Total Fixed Expenses | $590 | $7,085 | ||
| Total Expenses (Fixed + Mortgage) | $1,576 | $18,910 | ||
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 2.6% | 3.7% | 4.9% | 6.2% | |
| Net Cash Flow | $7,824 | $22,617 | $45,103 | $76,082 | |
| Equity Increase | $63,156 | $141,723 | $239,747 | $362,438 | |
| Total Gain | $70,980 | $164,340 | $284,849 | $438,520 | |
| Average Cash Flow/Year | $1,565 | $2,262 | $3,007 | $3,804 | |
| Average Cash Flow/Month | $130 | $188 | $251 | $317 | |
| Average Gain/Year | $14,196 | $16,434 | $18,990 | $21,926 | |
| Average ROI | 116.4% | 269.4% | 467.0% | 718.9% | |
| Annual ROI | 23.3% | 26.9% | 31.1% | 35.9% | |
| Projected Property Value | $304,163 | $370,061 | $450,236 | $547,781 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | A/B | FAVORABLE | ||
| Square Feet | 1000 | 1,986 | FAVORABLE | ||
| Bedrooms | 3 | 3 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 1976 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.88% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $130 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 23.3% | 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.