S Woodlawn – SFR

Aug 11, 2011   //   by Shaun   //   Investment Opportunities  //  No Comments

Property Summary: Look down below at the numbers and comments to see why this is a killer opportunity. This is a single-family property that will comes with a strong cash flow position.

The property is being sold under market value for $89,000 including the rehab.  This was a light rehab that did not justify replacement of kitchen and bathrooms so it is a modest rehab perfect for the local demand.  It is already rented for $1,250 a month.

The After Repair Value (ARV) is $137,600.  In the figures below the market value is the value that will be attained once the property is fully rehabbed, not the value of its current condition.

This property is in an up and coming neighborhood and is located near schools, churches, public transportation, major highways, parks and convenient shopping.

EquityBuild is the company that handles all parts of the transaction and has done over 400 transactions in the past 6 years. The company provides the rehab, the property management and all necessary aspects of getting the property financed and refinanced resulting in a highly productive, cash flow producing investment property that you can enjoy long into the future.

S Woodlawn Ave., Chicago, IL 60628

PROPOSED TERMS:

These numbers are for the first of year of operation.  All subsequent years should factor in maintenance and vacancy rates as well as increases in rents.

Property Type
SFR
Purchase Price w/ Rehab 
$89,000 
Property Value After Rehab 
$137,600
Cost To Market Value
64.7%
Unit Configuration (#BR’s/#BA’s)
4/2 (1BR is in basement below grade)
Projected Income (annually/monthly)
$15,000/$1,250 (Property is rented)
Taxes
$2,394
Builder’s Risk Insurance (estimated and used only during rehab)
$0 (Property is rehabbed)
Property Management (10%)
$1,500
Cost of Bridge Loan (15% APR) 
(This is an annual number but you will likely not need it for a year)
$13,350
Cash Flow During Bridge Loan (annually/monthly) 
$0/$0 (guaranteed with rent guarantee)
Cost of Permanent Loan after Refinance
Estimated at 5% APR which is a bit high (annually/monthly)
$5,736/$478 
Landlord Hazard Policy (estimated and after completion of rehab) 
$600
Cash Flow During Permanent Loan (annually/monthly)
$4,770/$398

EQUITYBUILD’S COMMENTS:

This will make a great start or addition to any portfolio with a substantial equity position, strong positive cash flow, minimum cash outlay and a tenant(s) buying this high performing asset for you.

The numbers listed above do not factor in maintenance or vacancy rates because they are not relavent during the bridge loan period since EquityBuild has guarantees that cover maintenance and rents.

The Rent Guarantee states that you will be compensated for any deficiency between the income and cost of the bridge loan once the rehab period has completed.  This will continue for the duration of the bridge loan or until the loan has refinance, whichever comes first.

The Maintenance Guarantee states that all maintenance will be guaranteed for 1 year following the completion of the rehab.

The Loss Guarantee states that value of the property is guaranteed to not drop below the cost of purchase and rehab.  If it does then any deficiency will be reimbursed.

Call Now!

First come, first serve.  

Don’t let this one slip away into someone else’s hands.

 

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