The Path to Real Estate Enlightenment is Right Here! [Code: 15]

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Why THIS deal??
  • ~$188/mo. cash flow once you can refi to 6.0% 
  • Cash flows at ~$109/mo. at today's rates of 6.625%

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  • Single family detached house with 3 bedrooms and 2 full bathrooms
  • Price has been dropped by $15k since the original listing date
  • Large lot on private cul-de-sac
  • Location has quick access to major commuting routes, shopping and schools
  • Highly appreciating area with strong rental market
  • Property has been on the market for 37 days
  • Will need carpet and minor cosmetic improvements
  • Good Schools
  • No HOA charges
  • #cashflow  #appreciation  

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

  • Built: 1996
  • Size:1,143 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:  St. Louis

Team: Nathan  – email directly at stl1@simplydoit.net

Code: 15

Property Specifications1
 Bedrooms3
 Bathrooms2
 Square Feet1143
 Year Built1996
 Garage Size2
 Schools Rating (scale 3-30, 30 is best)16
Lot size (sq ft)13504

Purchase AssumptionsMy Offer
Offer used for analysis$278,000
Suggested offer (low)$273,000
Suggested offer (high)$278,000
Asking$285,000
Market Value (after improvements)$300,000
Estimated Improvements (lower)$10,000
Estimated Improvements (upper)$15,000
Estimated Closing Costs$2,780
Estimated Mortgage Costs$2,238
Other Fees At Closing (pts, . . . )$2,919
Total Cost (estimated)$298,437

Financing Assumptions 
 Down Payment (%) 30%
 Down Payment Amount$83,400
 Financed Amount$194,600
 Interest Rate 6.625%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$1,246
 Cash Outlay (Total Out of Pocket) $103,837

Estimated Financial Assumptions
 MonthlyYearly
Rent (upper)*$2,100$2,150$25,800
Rent (lower)*$2,050$24,600
    
Property Taxes $300$3,600
Insurance $135$1,620
Repairs75$100$1,200
Property Management Monthly (%)7.5% 
Property Management Monthly ($)$158$1,890
Leasing Fee75%$65.6$788
HOA or Fixed Costs$0$0
Vacancy Rate 4.0% 
Total Fixed Expenses40%$836$10,030
 Total Expenses (Fixed + Mortgage)$2,082$24,982

Financial Analysis / Deal Attractiveness    
Years:5101520
 Cap Rate1.3%2.7%4.3%6.1%
 Net Cash Flow$6,535$28,089$67,269$127,120
 Equity Increase$77,169$173,186$292,965$442,814
 Total Gain$83,704$201,274$360,234$569,935
      
 Average Cash Flow/Year$1,307$2,809$4,485$6,356
 Average Cash Flow/Month$109$234$374$530
 Average Gain/Year$16,741$20,127$24,016$28,497
 Average ROI80.6%193.8%346.9%548.9%
 Annual ROI16.1%19.4%23.1%27.4%
 Projected Property Value$364,996$444,073$540,283$657,337

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
INSUFFICIENT
 Schools (scale of 3-30, 30 is the best) 1416FAVORABLE
 Square Feet  1,0001,143FAVORABLE
 Bedrooms  33FAVORABLE
 Bathrooms  22FAVORABLE
 Year Built  19701996FAVORABLE
 Average Cash Flow (at year 5)  $125$109INSUFFICIENT
 Average ROI (at year 5)  15%16.1%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.