A Duplex with large yard providing monthly turnkey cash flow
Multi-family
1,150 sqft. Interior
3,702 sqft. Exterior
2 Bathrooms
2 Doors
Property Location
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Disclaimer:
As experts in property purchasing, we offer consultations and detailed analyses of rental income properties. However, the images, financial projections, and examples presented are for illustrative purposes only and do not guarantee returns or the expected profitability. The configurations and features of the properties may vary. We strongly recommend that you consider our guidance, but also conduct your own research and due diligence before making any investment decisions. Trust our expertise, but remember that all investments carry inherent risks. You are solely responsible for your investment decisions. Your trust is our priority.
Comprehensive Financial Details
At Great Front Door, transparency is key. We want you to have a clear understanding of all costs associated with your property investment. Below, we break down the pricing for Rental Income Property to help you make an informed decision
FINANCIAL DETAILS
- Description Amount
- Listing Price: $ XX,XXX
- Cash Due at Closing
- Down Payment: $ 130,000
- Agent Fees: $ 19,500
- Mortgage Fees: $ 5,200
- 1st Year's Insurance: $ 6,500
- 1st Year's Taxes: $ 6,500
- Total Closing Costs: $ 167,700
- Renovation Cost: $ 20,000
- Mortgage While Renovating: $ 3,588
- Property Management Fees: $ 6,514
- Total Initial Investment: $ 197,802
- Investor Considerations
- After Repair Value (ARV): $ 1,341,667
- Equity after Renovation (EaR): $ 493,864
- Fix and Flip Max Price: $ 929,167
- Max. Cash Available from EaR eligible for Cash Out Refinance: $ 395,091
- Remaining Total Initial Investment after Cash Out Refinance: $ -197,289
RENTAL COMPARISON AND CASH FLOW
- Description Amount
- Monthly Income
- Avg. Monthly Rent ( 2 x 4-bed, 2-bath, 907-sqft rental unit): $ 3,257
- TOTAL Avg. Monthly Rent: $ 6,514
- Monthly Expenses
- Monthly Mortgage Payment: $ 3,588
- Monthly HOA (if any): $ 0
- Monthly Insurance: $ 542
- Monthly Tax: $ 542
- Monthly Maintenance: $ 542
- Monthly Property Management Fees: $ 651
- Total Monthly Payment: $ 5,865
- Monthly Cash Flow: $ 649
- Annual Cash Flow: $ 7,791
- Return of Investment In: 1 month
HOW WOULD I RETURN MY INITIAL INVESTMENT?
- Initial Investment: To acquire this property with listing price of $XX,XXX.XX and maximize the rental potential of this property, you will need an initial investment of approximately $197,802. This includes closing costs totaling $167,700 which is a down payment of $130,000, agent fees of $19,500 and mortgage fees of $5,200. Initial investment also includes your renovation budget of $20,000 and mortgage payments during the renovation over 1 months totaling $3,588.
- After Repair Value (ARV): The property has an After Repair Value (ARV) of $1,341,667. The maximum price for a Fix and Flip is estimated at $929,167. After completing all renovation costs, the Equity After Renovation stands at $493,864. Since there is positive equity after the renovation, you can perform a Cash Out Refinance with your mortgage assuming the ARV and get 80% of this equity back totaling $395,091 in cash after the renovation. This shortens the original Return of Investment duration because the entire Initial Investment can be cashed out of the property after the renovations and Cash Out Refinance are complete.
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Rental Cash Flow:
There are 2 x 4 Bed, 2 Bath, 907 sqft units that average $3,257. You could rent 2 units for an average of $3,257 per month totaling $6,514.
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Rental Unit/s: 4-bed with 2-bath Unit
Unit Name Rent Estimate Square Feet $ 2,864 883 $ 2,795 1,000 $ 4,112 838 Unit Details Unit Name: https://www.trulia.com/building/pacific-pointe-2108-n-pacific-st-seattle-wa-98103-1016054569?cid=shr%7C%7C%7C%3Aoverview%3A%7Ccopylink
Rent Estimate: $ 2,864
Square Feet: 883Unit Name: https://www.trulia.com/home/7638-winona-ave-n-b-seattle-wa-98103-349963853?cid=shr%7C%7C%7C%3Aoverview%3A%7Ccopylink
Rent Estimate: $ 2,795
Square Feet: 1,000Unit Name: https://www.trulia.com/building/the-cline-3665-stoneway-n-seattle-wa-98103-2714635551?cid=shr%7C%7C%7C%3Aoverview%3A%7Ccopylink
Rent Estimate: $ 4,112
Square Feet: 838 - Return of Investment: Since there is positive Equity after the Renovation, you can perform a Cash Out Refinance with your mortgage assuming the After Renovation Value of $1,341,667 and get 80% of the $493,864 in Equity back in cash after the renovation totaling $395,091. This shortens the original Return of Investment duration of 25 years and 1 month to 1 month because the entire Initial Investment of $197,802 which included Closing Costs, Renovation Budget and getting tenants in, can be cashed out of the property after the renovations and Cash Out Refinance are complete. With Total Monthly Expenses amounting to $5,865, including mortgage payments, taxes, insurance, and maintenance, you can anticipate a Monthly Cash flow of approximately $649, resulting in an Annual Cash Flow around $7,791 going forward.
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