Updated Cash Flowing Quad in KC Metro!! [Code: 18800]

SDI  logo only.pngWhy THIS deal??
  • ~$655/mo. cash flow once refinanced to 5.0%
  • ~$365/mo. cash flow at today's rate of 6.25%
  • Fully occupied so there are not up front improvement costs
  • 74 Days on the market
After 15 Years (no mortgage)
Original purchase price$490,000
Total investment (out of pocket)$133,300
15 yrs Project house value$900,472
Value (appreciation) Gain$410,472
15 yrs cash-flow generated$116,674
Total Gain$527,145
ROI (15 yrs)395%
ROI (annually)26%
Free & Clear cash flow (yr.)$39,979
Free & Clear cash flow (m)$3,332
  • Quad (4-plex) with each unit having 2 bedrooms and 1.5 baths
  • All 4 units have 1-car attached garages 
  • Seller originally was only willing to sell if buyer agreed to an appraisal gap contingency.  We have since verbally negotiated with the Sellers agent to drop that requirement. 
  • Seller is willing to forego an appraisal gap contingency for a full price offer 
  • Stable area and units have been well maintained
  • No HOA charges
  • Tenants pay all utilities and there are no common areas
  • Unfinished basement(s) provides value-add opportunity if buyer wants to add square footage. 
  • Roof is 6-12 years old, water heaters are nearing the end of life expectancy, each unit has 100 amp circuit breaker in good working condition, HVAC units of varying makes models range from 7-11 years old
  • Washer/dryer hookups in each unit
  • 0.32 Acre lot

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

  • Built: 1986
  • Size: Each unit is approx. 1,080 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: Kansas City

Team: Meredith  – email directly at kc1@simplydoit.net

Code: 18800

Property Specifications4Per Door
 Square Feet43201080
 Year Built1986 
 Garage Size41
 Schools Rating (on scale of A-C)B 
Purchase AssumptionsMy OfferPer Door
Offer used for analysis$490,000$122,500
Suggested offer (low)$465,000$116,250
Suggested offer (high)$490,000$122,500
Market Value (after improvements)$500,000 
Improvements (lower)$4,000$1,000
Improvements (upper)$8,000$2,000
Closing Costs$4,900$1,225
Mortgage Costs$4,900$1,225
Other Fees At Closing $0
Total Cost $505,800$1,225
Financing Assumptions 
 Down Payment (%)25%
 Down Payment Amount$122,500
 Financed Amount$367,500
 Interest Rate (5/6 ARM)6.250%
 Mortgage Term (Years)30
 Monthly Mortgage Payment$2,263
 Cash Outlay (Total Out of Pocket)$138,300
Financial AssumptionsMonthlyYearly
Rent (market rents)$4,065$4,200$50,400
Rent (current rents)$3,930$47,160
Property Tax Rate (Approx.)1.4% 
Property Taxes $470$5,640
Insurance $220$2,640
Repairs $300$3,600
Variable-Cost PM 7.0% 
Property Management Fee$285$3,415
Leasing Fee68%$114.3$1,372
HOA $0$0
Vacancy Rate 4.0% 
Total Fixed Expenses$1,540$18,481
 Total Expenses (Fixed + Mortgage)$3,803$45,634

Financial Analysis / Deal Attractiveness   
 Cap Rate3.2%4.4%5.6%7.0%
 Net Cash Flow$21,911$60,233$116,674$193,120
 Equity Increase$132,812$298,048$504,069$761,533
 Total Gain$154,723$358,281$620,743$954,653
 Average Cash Flow/Year$4,382$6,023$7,778$9,656
 Average Cash Flow/Month$365$502$648$805
 Average Gain/Year$30,945$35,828$41,383$47,733
 Average ROI111.9%259.1%448.8%690.3%
 Annual ROI22.4%25.9%29.9%34.5%
 Projected Property Value$608,326$740,122$900,472$1,095,562

Property Ratings Suggestions
 Item   Suggested Criteria (Min.)This PropertyFAVORABLE /
 Square Feet  10004,320FAVORABLE
 Bedrooms  38FAVORABLE
 Bathrooms  26FAVORABLE
 Year Built  19701986FAVORABLE
 Rent/Price (%)  0.75%0.86%FAVORABLE
 Average Cash Flow (at year 5)  $125$365FAVORABLE
 Average ROI (at year 5)  15%22.4%FAVORABLE




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.