Metro Phoenix – $37k Below Market Value. Cashflow $40/mo After Expenses. Seller Lease-Back for 2 Years
Metro: Phoenix
City/Area: Approx 1 hour from Phoenix (~50 miles)
Year Built: 2004
Square Footage: 1,276
Bedroom Count: 3
Bathroom Count: 2
Garage: 2G
Pool: No Pool
Solar: No
HOA: Yes $76/mo
Acquisition Details
Estimated Retail Value: $290,000
Purchase Price: $253,000
Equity: $37,000
Lease-Back Details
- Lease Term: 24 months
- Monthly Rent: $1,650
- Total Rent: 24 X $1650 = $39,600, paid as follows:
- Prepaid Rents: $25,800 – paid at closing
- Tenant Monthly Payment: $575 (X 24 month = $13,800)
| Financial Analysis / Deal Attractiveness | Your Out of Pocket: | $87,680 | |||
| Years: | 5 | 10 | 15 | 20 | |
| Cap Rate | 5.7% | 7.6% | 9.6% | 11.9% | |
| Net Cash Flow | $25,140 | $66,521 | $126,888 | $209,444 | |
| Equity Increase | $91,436 | $209,340 | $361,486 | $557,972 | |
| Total Gain | $116,577 | $275,861 | $488,375 | $767,416 | |
| Average Cash Flow/Year | $5,028 | $6,652 | $8,459 | $10,472 | |
| Average Cash Flow/Month | $419 | $554 | $705 | $873 | |
| Average Gain/Year | $23,315 | $27,586 | $32,558 | $38,371 | |
| Average ROI | 133.0% | 314.6% | 557.0% | 875.2% | |
| Annual ROI | 26.6% | 31.5% | 37.1% | 43.8% | |
| Projected Property Value | $370,122 | $472,379 | $602,889 | $769,456 | |
| Property Specifications | 1 |
| Bedrooms | 3 |
| Bathrooms | 2 |
| Square Feet | 1276 |
| Year Built | 2004 |
| Garage Size | 2 |
| Schools Rating (scale 3-30, 30 is best) | |
| Lot size (sq ft) | 4,791 |
| Purchase Assumptions | My Offer |
| Offer used for analysis | $253,000 |
| Suggested offer (low) | $253,000 |
| Suggested offer (high) | $253,000 |
| Asking | $253,000 |
| Market Value (after improvements) | $290,000 |
| Day-1 Equity | $37,000 |
| Estimated Improvements (lower) | $7,500 |
| Estimated Improvements (upper) | $9,500 |
| Estimated Closing Costs | $2,530 |
| Estimated Mortgage Costs | $0 |
| Other Fees At Closing (pts, . . . ) | $750 |
| Total Cost (estimated) | $264,780 |
| Financing Assumptions | |||
| Down Payment (%) | 30% | ||
| Down Payment Amount | $75,900 | ||
| Financed Amount | $177,100 | ||
| Interest Rate | 6.500% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | 54.6% | $1,119 | |
| Cash Outlay (Total Out of Pocket) | $87,680 | ||
| Estimated Financial Assumptions | Monthly | Yearly | |
| Rent (upper)* | $2,050 | $2,100 | $25,200 |
| Rent (lower)* | $2,000 | $24,000 | |
| * Can fluctuate depending on time of year property is being rented. | |||
| Property Taxes | $100 | $1,200 | |
| Insurance | $100 | $1,200 | |
| Repairs | 75 | $85 | $1,020 |
| Property Management Monthly (%) | 0.0% | ||
| Property Management Monthly ($) | $85 | $1,020 | |
| Leasing Fee | 100% | $85.4 | $1,025 |
| HOA or Fixed Costs | $76 | $912 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | 29.8% | $610 | $7,320 |
| Total Expenses (Fixed + Mortgage) | $1,729 | $20,753 | |
Disclaimer
The information provided herein has been compiled from sources believed to be reliable; however, no representation, warranty, or guarantee, express or implied, is made as to the accuracy, completeness, or suitability of this information. All property details, pricing, and projections are subject to change without notice, and may include errors, omissions, or withdrawal from the market at any time.
The analysis and projections are offered “as is” for illustrative purposes only and should not be relied upon as investment, legal, tax, or financial advice. It is the responsibility of each individual to independently verify all assumptions, data, and projections.
By reviewing this information, you agree to release all parties involved in the preparation and sharing of this material from any and all liability related to its use or interpretation.
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