Updated Cash Flowing Quad in KC Metro!! [Code: 18800]
Why 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 Specifications | 4 | Per Door |
| Bedrooms | 8 | 2 |
| Bathrooms | 6 | 1.5 |
| Square Feet | 4320 | 1080 |
| Year Built | 1986 | |
| Garage Size | 4 | 1 |
| Schools Rating (on scale of A-C) | B |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $490,000 | $122,500 |
| Suggested offer (low) | $465,000 | $116,250 |
| Suggested offer (high) | $490,000 | $122,500 |
| Asking | $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 Assumptions | Monthly | Yearly | |
| 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 Fee | 68% | $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 | |||||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 3.2% | 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 ROI | 111.9% | 259.1% | 448.8% | 690.3% | |
| Annual ROI | 22.4% | 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 Property | FAVORABLE / INSUFFICIENT | ||
| Schools | B | B | FAVORABLE | ||
| Square Feet | 1000 | 4,320 | FAVORABLE | ||
| Bedrooms | 3 | 8 | FAVORABLE | ||
| Bathrooms | 2 | 6 | FAVORABLE | ||
| Year Built | 1970 | 1986 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.86% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $365 | 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.