Think outside the box in Birmingham Metro! [Code: 419]
- ~$15K instant equity
- Completely renovated. Little to no make-ready needed to get this house rented at top dollar.
- Cash flow breaks even until you can refinance
- Once you're able to refinance (we used 4.5% which is a typical interest rate over the last decade) and cash flow is over $250/mo.
- This property is right on the outskirts of neighborhoods with $500k-over million dollars homes. Great for future comps and appreciation.
| After 15 Years (no mortgage) | |||
| Original purchase price | $345,000 | ||
| Total investment (out of pocket) | $97,125 | ||
| 15 yrs Project house value | $748,206 | ||
| Value (appreciation) Gain | $403,206 | ||
| 15 yrs cash-flow generated | $32,578 | ||
| Total Gain | $435,785 | ||
| ROI (15 yrs) | 448.7% | ||
| ROI (annually) | 29.9% | ||
| Free & Clear cash flow (yr.) | $23,792 | ||
| Free & Clear cash flow (m) | $1,983 | ||
- 4 bedroom, 2 bath Single Family Home WITH finished attic room and storage
- Quick access to highways and shopping
- On the market for only 21 days. Good Negotiation Tool
- Rents used in property analysis are conservative
- Price has already been dropped by $20K
- Zero HOA fees
- Backyard boasts a wood deck for entertaining
- A-rated schools. BEST in the area!
- Very close to shopping (walkable)
- Area undergoing high appreciation and increasing rents
- Detached 2-car garage
- 7,841 square foot lot
Why should you consider this house / what makes it a good investment?
- Built: 1980
- Size: 1,575 square foot home
- Low Crime, Desirable Community, Great 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/Don – email directly at bir1@simplydoit.net
Code: 419
| Property Specifications | 1 |
| Bedrooms | 4 |
| Bathrooms | 2 |
| Square Feet | 1575 |
| Year Built | 1980 |
| Garage Size | 2 |
| Schools Rating (on scale of A-C) | A |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $345,000 | |
| Suggested offer (low) | $345,000 | |
| Suggested offer (high) | $345,000 | |
| Asking | $359,900 | |
| Market Value (after improvements) | $359,900 | |
| Improvements (lower) | $1,500 | |
| Improvements (upper) | $3,000 | |
| Closing Costs | $3,450 | |
| Mortgage Costs | $3,450 | |
| Other Fees At Closing | $1,725 | 0.5 point |
| Total Cost | $355,875 |
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $2,450 | $2,550 | $30,600 |
| Rent (lower) | $2,350 | $28,200 | |
| Property Tax Rate (Approx.) | 1.0% | ||
| Property Taxes | $400 | $4,800 | |
| Insurance | $125 | $1,500 | |
| Repairs | $75 | $900 | |
| Variable-Cost PM | 8.0% | ||
| Property Management Fee | $196 | $2,352 | |
| Leasing Fee | 60% | $61.3 | $735 |
| HOA | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $947 | $11,369 | |
| Total Expenses (Fixed + Mortgage) | $2,499 | $29,985 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 0.2% | 1.2% | 2.2% | 3.4% | |
| Net Cash Flow | $754 | $11,275 | $32,578 | $65,787 | |
| Equity Increase | $117,406 | $268,553 | $463,218 | $714,039 | |
| Total Gain | $118,160 | $279,828 | $495,796 | $779,826 | |
| Average Cash Flow/Year | $151 | $1,127 | $2,172 | $3,289 | |
| Average Cash Flow/Month | $13 | $94 | $181 | $274 | |
| Average Gain/Year | $23,632 | $27,983 | $33,053 | $38,991 | |
| Average ROI | 121.7% | 288.1% | 510.5% | 802.9% | |
| Annual ROI | 24.3% | 28.8% | 34.0% | 40.1% | |
| Projected Property Value | $459,334 | $586,239 | $748,206 | $954,922 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | A | FAVORABLE | ||
| Square Feet | 1,000 | 1,575 | FAVORABLE | ||
| Bedrooms | 3 | 4 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 1980 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.74% | INSUFFICIENT | ||
| Average Cash Flow (at year 5) | $125 | $13 | INSUFFICIENT | ||
| Average ROI (at year 5) | 15% | 24.3% | 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.