The word of the day is POTENTIAL!! [Code: 1110]
- ~$291/mo. cash flow at today's rate of 6.125%
- ~$458/mo. cash flow once refinanced to 4.5%
- Huge potential for rent increase with updates and finishing of basement for added square footage
- Has been on the market for 35 days. Great negotiation tool!
- Great price point with aggressive suggested offer
| After 15 Years (no mortgage) | |||
| Original purchase price | $220,000 | ||
| Total investment (out of pocket) | $75,900 | ||
| 15 yrs Project house value | $432,226 | ||
| Value (appreciation) Gain | $212,226 | ||
| 15 yrs cash-flow generated | $77,452 | ||
| Total Gain | $289,678 | ||
| ROI (15 yrs) | 382% | ||
| ROI (annually) | 25% | ||
| Free & Clear cash flow (yr.) | $19,679 | ||
| Free & Clear cash flow (m) | $1,640 | ||
- 4 bedroom, 2 bath Single Family Residence
- This house needs some TLC and updates
- Awaiting seller's disclosures for information on any mechanical and roof updates
- This opportunity is probably not best suited for a beginner investor
- No HOA charges
- Value-add opportunity for finishing the basement and adding a 5th bedroom. Some basic construction has already been done (ie: venting and windows)
- If a 5th bedroom is added and cosmetic updating is done, you can expect a jump in rental amount and increased monthly cash flow
- Highly appreciating neighborhood
- 9,100 square foot lot
Why should you consider this house / what makes it a good investment?
- Built: 1977
- Size: 1,783 square feet
- 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: St. Louis
Team: Nathan – email directly at stl1@simplydoit.net
Code: 1110
| Property Specifications | 1 |
| Bedrooms | 4 |
| Bathrooms | 2 |
| Square Feet | 1783 |
| Year Built | 1977 |
| Garage Size | 2 |
| Schools Rating (on scale of A-C) | A/B |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $220,000 |
| Suggested offer (low) | $220,000 |
| Suggested offer (high) | $235,000 |
| Asking | $239,900 |
| Market Value (after improvements) | $240,000 |
| Improvements (lower) | $8,000 |
| Improvements (upper) | $25,000 |
| Closing Costs | $2,200 |
| Mortgage Costs | $2,200 |
| Other Fees At Closing | |
| Total Cost | $240,900 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $55,000 | ||
| Financed Amount | $165,000 | ||
| Interest Rate (5/6 ARM) | 6.125% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $1,003 | ||
| Cash Outlay (Total Out of Pocket) | $75,900 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $1,900 | $2,000 | $24,000 |
| Rent (lower) | $1,800 | $21,600 | |
| Property Tax Rate (Approx.) | 1.2% | ||
| Property Taxes | $210 | $2,520 | |
| Insurance | $100 | $1,200 | |
| Repairs | $75 | $900 | |
| Variable-Cost PM | 7.5% | ||
| Property Management Fee | $143 | $1,710 | |
| Leasing Fee | 75% | $59.4 | $713 |
| HOA | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $657 | $7,886 | |
| Total Expenses (Fixed + Mortgage) | $1,660 | $19,917 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 4.6% | 5.7% | 6.8% | 8.0% | |
| Net Cash Flow | $17,459 | $42,996 | $77,452 | $121,755 | |
| Equity Increase | $63,222 | $141,719 | $239,366 | $361,076 | |
| Total Gain | $80,681 | $184,716 | $316,818 | $482,830 | |
| Average Cash Flow/Year | $3,492 | $4,300 | $5,163 | $6,088 | |
| Average Cash Flow/Month | $291 | $358 | $430 | $507 | |
| Average Gain/Year | $16,136 | $18,472 | $21,121 | $24,142 | |
| Average ROI | 106.3% | 243.4% | 417.4% | 636.1% | |
| Annual ROI | 21.3% | 24.3% | 27.8% | 31.8% | |
| Projected Property Value | $291,997 | $355,259 | $432,226 | $525,870 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | A/B | FAVORABLE | ||
| Square Feet | 1000 | 1,783 | FAVORABLE | ||
| Bedrooms | 3 | 4 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 1977 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.91% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $291 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 21.3% | 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.