This St. Louis Metro House has EVERYTHING! [Code: 613]
- ~ $230/mo. cash flow
- $20K instant equity if suggested offer is accepted
- Price recently reduced by $8K on 8/11/22. Motivated seller
- 185 Days on the Market. Great negotiation tool
- Large unfinished basement that could be completed for additional square footage!
- Highly appreciating neighborhood
| After 15 Years (no mortgage) | |||
| Original purchase price | $260,000 | ||
| Total investment (out of pocket) | $79,200 | ||
| 15 yrs Project house value | $504,264 | ||
| Value (appreciation) Gain | $244,264 | ||
| 15 yrs cash-flow generated | $67,551 | ||
| Total Gain | $311,815 | ||
| ROI (15 yrs) | $4 | ||
| ROI (annually) | $0 | ||
| Free & Clear cash flow (yr.) | $20,571 | ||
| Free & Clear cash flow (m) | $1,714 | ||
- 3 bedroom, 2 bath Single Family Detached Residence
- Fully fenced backyard with oversized deck. Perfect for families and pets
- Price recently reduced by $8k. Motivated Seller!
- ~ $230/mo. cash flow
- $20K instant equity if suggested offer is accepted
- 30 year architectural shingle roof which was replaced in 2015
- 185 Days on the Market
- Attached 2-car garage
- House is vacant. No waiting to turn over tenants
- Large unfinished basement that could be completed for additional square footage!
- Quiet residential street
- A-rated schools
- 7,841 square foot lot
Why should you consider this house / what makes it a good investment?
- Built: 1991
- Size: 1,477 square foot home
- Low Crime, Desirable community, Prime residential location, A-rated school district
What's Happening in the STL Market?
We are seeing a transition from the spring market. However, it is still a highly competitive market and the housing fundamentals are still strong. Here's stats from July:
- Average days on market only 19 (down from 21 in 2021)
- 1.6 months supply of inventory (same as 2021)
- Average home sold 3.5% OVER list price in July (same as 2021)
- 2/3 homes priced between $200-350k go under contract in the first weekend
St. Louis hasn't seen a huge slowdown because our homes are below national average, meaning higher interest rates don't impact our market as significantly has markets with $1m homes. We still are severely lacking supply with no increase in homes available and still high demand. We didn't see 40% yoy growth like other markets. Instead we saw a steady increase over the past few years that are in line with the past 10 years. Indicating our increase isn't a bubble.
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: 613
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2 |
| Square Feet | 1477 |
| Year Built | 1991 |
| Garage Size | 2 |
| Schools Rating (on scale of A-C) | A |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $260,000 |
| Suggested offer (low) | $260,000 |
| Suggested offer (high) | $265,000 |
| Asking | $272,000 |
| Market Value (after improvements) | $280,000 |
| Improvements (lower) | $8,000 |
| Improvements (upper) | $10,000 |
| Closing Costs | $2,600 |
| Mortgage Costs | $2,600 |
| Other Fees At Closing | $0 |
| Total Cost | $274,200 |
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $2,100 | $2,200 | $26,400 |
| Rent (lower) | $2,000 | $24,000 | |
| Property Tax Rate (Approx.) | 1.0% | ||
| Property Taxes | $290 | $3,480 | |
| Insurance | $110 | $1,320 | |
| Repairs | $100 | $1,200 | |
| Variable-Cost PM | 7.5% | ||
| Property Management Fee | $158 | $1,890 | |
| Leasing Fee | 75% | $65.6 | $788 |
| HOA | $0 | $0 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $801 | $9,610 | |
| Total Expenses (Fixed + Mortgage) | $1,923 | $23,080 | |
| Financial Analysis / Deal Attractiveness | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 3.5% | 4.5% | 5.7% | 6.9% | |
| Net Cash Flow | $13,780 | $36,004 | $67,551 | $109,391 | |
| Equity Increase | $75,068 | $167,945 | $282,990 | $425,668 | |
| Total Gain | $88,848 | $203,949 | $350,541 | $535,060 | |
| Average Cash Flow/Year | $2,756 | $3,600 | $4,503 | $5,470 | |
| Average Cash Flow/Month | $230 | $300 | $375 | $456 | |
| Average Gain/Year | $17,770 | $20,395 | $23,369 | $26,753 | |
| Average ROI | 112.2% | 257.5% | 442.6% | 675.6% | |
| Annual ROI | 22.4% | 25.8% | 29.5% | 33.8% | |
| Projected Property Value | $340,663 | $414,468 | $504,264 | $613,514 | |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | A | FAVORABLE | ||
| Square Feet | 1000 | 1,477 | FAVORABLE | ||
| Bedrooms | 3 | 3 | FAVORABLE | ||
| Bathrooms | 2 | 2 | FAVORABLE | ||
| Year Built | 1970 | 1991 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.85% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $230 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 22.4% | 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.