St Louis property

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SDI's local team did a walk through of the area and property a few days ago.

Video link (part 1): https://youtu.be/6cDr6ZKzTaY
Video link (part 2): https://youtu.be/vnQJZ-4t9-k

Similar house values in the area are $240k-250k (see COMPS below)
House sits on a busy street but at $200k makes a good investment
Strategy is to offer $190k but agree w/ seller on $200K
Seller's asking is $205k (after our agent told him that he would never get $225k he thought of asking before listing it)

What's next?

Email/text for address, analysis and to get connected to Simply Do It's local team that handles this transaction.

Seller is motivated to sell sooner than later

Brick house with a full basement
Kitchen renovated
Electrical, plumbing, roof, and HVAC – all good
Large deck off dining area
Hardwood floors in the living room, hall, and three bedrooms

New interlocking floor in kitchen and basement
Separate work room in the basement
Attached 1 car extended garage
All new windows plus installation – ordered and purchased


Super convenient to highways, groceries, restaurants, shops

– sits on the thoroughfare
– quiet inside home, but some outside road noise
– in demand area will attract a tenant
– noise mitigation via circle driveway and three evergreens

Property Specifications 1
 Bedrooms 3
 Bathrooms 1
 Square Feet 1189
 Year Built 1964
 Garage Size 2
 Schools Rating (on scale of A to B-) B
Purchase Assumptions My Offer
Asking $205,000
Suggested offer (low) $190,000
Suggested offer (high) $200,000
Suggested offer (options) $200,000
 Market Value (after improvements) $250,000
 Improvements (lower) $2,500
 Improvements (upper) $5,500
 Closing Costs $2,500
 Mortgage Costs $2,500
 Total Cost  $209,000
Financing Assumptions  
 Down Payment (%) 25%
 Down Payment Amount $50,000
 Financed Amount $150,000
 Interest Rate 3.40%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $665
 Cash Outlay (Total Out of Pocket) $59,000

Financial Assumptions Monthly Yearly
Rent (upper) $1,450 $1,500 $18,000
Rent (lower) $1,400 $16,800
 Property Tax Rate (Approx.) 1.00%  
 Property Taxes $167 $2,000
 Insurance $100 $1,200
 Repairs $85 $1,020
Variable-Cost PM 7.5%  
Property Management Fee $109 $1,305
 Leasing Fee 75% $45.3 $544
 HOA $0 $0
 Vacancy Rate 5.0%  
 Total Fixed Expenses $573 $6,874
 Total Expenses (Fixed + Mortgage) $1,238 $14,856

Financial Analysis / Deal Attractiveness
Years: 5 10
 Cap Rate 5.0% 6.0%
 Net Cash Flow $14,867 $35,436
 Equity Increase $69,850 $154,337
 Total Gain $84,717 $189,772
     
 Average Cash Flow/Year $2,973 $3,544
 Average Cash Flow/Month $248 $295
 Average Gain/Year $16,943 $18,977
 Average ROI 143.6% 321.6%
 Annual ROI 28.7% 32.2%
 Projected Property Value $304,163 $370,061

COMPS
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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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