Back on the market pending release-financing fell through!
Property passed an FHA inspection and FHA appraised at $211,000!!! LISTED AT $141,000
New or seasoned investor, you will see why this won’t last long. This makes for a very attractive investment opportunity at the price of $141,000!! A Single Family Home in Dundalk, minutes from 695 Key Bridge-close access to 95 or 97.
This 3/2.5 is a rehabbed short sale and nearly ready for a new tenant-or turn quickly on rent-to-own! Use whatever exit strategy necessary to increase your portfolio! First take a look at the house and then I will analyze ROI on rental or RTO.
- 3 bedroom
- 2.5 bath
- MBA whirlpool tub with sep stand up shower
- Appliances convey-stainless steel-fridge/freeze w/ice maker, dw, microwave, stove
- New Kitchen cabinets and counters
- New tile floors
- New Washer/Dryer
- New electric/wiring/breaker box
- New plumbing
- New windows
- New roof
- New hardwired security system
- Property pictures and video tour here
Deal Analysis Purchase:
- Purchase $141,000
- Down Payment (20%) $28,200
- Loan Closing: (6%) $6768
- Repair estimate: $2500 (high side)
- Mortgage Amount: $112,800
- Monthly PI: $750.46 (7% fixed 30 year)
- Annual Taxes $897 ($74.75 month)
- Hazard Ins: $600 ($50 month)
- Total monthly expense: $875.21
- Total Invested: $37468
- These numbers are all estimates and are not intended as committments to loan.
Return on Investment:Buy & Hold Strategy
- Market rent $1100
- PITI $875.21
- Cash Flow of $224.79 month $2697.48 annual 7.2% ROI (2697.48/$37468 invested)
- Depreciation return: $51990 Tax Value/27.5 year depreciation schedule=$1890.55 year. Assume a 33% tax rate=$630.18 per year deduction or 1.7% ROI
- 1st year loan (principal) pay down- $1145.82 or 3.1% ROI
- Appreciation: Using an appreciation rate in this market of 3% based on purchase price not market value-$4230 or 11.3% ROI
- Total 1 year ROI: 2697.48 + 630.18 + 1145.82 + 4230 = $8703.48 or 23.2% ROI
Deal Analysis:Rent to Own
When doing a rent to own, buyers/renters expect to pay more on monthly rent to accommodate your carrying of the paper for 12-24 months. In this analysis, I will cover a 12 month option, which means the renter must finance the purchase within 12 months of lease. The terms of the RTO are all negotiated up front and can include whatever safeguards that you require.
- Selling price of $189,900-Significant discount from market value to insure quick lease/sale and that any repairs will be done by buyer, so you will have no more Out of Pocket expenses.
- Non refundable $2000 paid up front for option to buy in 12 months-this can be used as a portion of the down payment at time of purchase finance by buyer.
- Rent for period to be determined based on mortgage of selling price and buyers credit score at time of lease. $189,900 – $2000= $187,900. Calculate 30 year amortization at 8%= $1378.74 month
- You receive $1378.74 per month- $875.21= $503.53 month cash flow: $6042.36 annual
- ROI 1 year cash flow only-$6042.36 / $34,968 (No repair costs:saved $2500) = 17.3% vs 7.2% on rental only.
- Buyer finance in 12 months at agreed on purchase price and you also pocket about $65,000-$70,000 from sale
12 month ROI:
- $8703.48 (ROI from all) + $70,000 (from sale) – $37,468 (investment) = $41,235.48 or 110.6% ROI
The numbers are actually better since the reat of the repairs have been done and an FHA appraised value at $211,000!!
Of course I always recommend to do your own due diligence, but I know at this price, this property will not last long.
Contact me for your personal showing or any questions you may have.
443-384-6000 office 443-912-4866 cell
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