310 Mills Way, Pelham, AL


$ 221,981 - Fix & Flip

3.0 bd | 2.0 ba | 1,331 sqft | 2001 | $ 1,307 Rent

ARV
$221,981
Net Profit
$35,801
Net ROI
20.00 %

Description

We all know the number one rule of real estate is location, location, location. Pelham, AL is one of the better suburbs of Birmingham and features a well regarded brand new high school, all kinds of new roads, and new shopping centers to support the really strong residential growth on the South side of town. These are the factors to look for when you are considering an area that may experience appreciation. Built in 2001 and approximately 1,300 square feet according to tax records, this home should rent for $1,350 and provide solid cash flow, but provide much easier tenants and be an excellent home to own with great peace of mind.


Fix & Flip Analysis

  • IRR: 24.66 %
  • Net Cashflow: $ -994
  • Rehab Est: $ 0
  • Cap Rate: 4.73 %
  • Monthly Rent: $ 1,307
  • ARV: $ 221,981
  • Cash on Cash: -1.98 %
  • Taxes: $ 525

Financial Analysis

  • Loan Amnt: $ 127,200
  • All-in Cost: $ 163,134
  • Debt Coverage Ratio: 4.73 %
  • Total Out of Pocket: $ 35,934
  • Monthly Mortgage: $ 702

Expense Assumptions

  • Prop Insurance: $ 1,665
  • Vacancy: $ 784
  • Prop Mgmt Fee: $ 1,255
  • Maintenance: $ 784
  • Capex: $ 0

Financing Assumptions

  • Cash Purchase: No
  • Loan Term: 360 months
  • Down Payment: 20.00 %
  • Points: 2.00
  • Interest Rate: 5.25 %
  • Interest only loan: No

Other Assumptions

  • Closing Cost: $ 2,220
  • Rental Holding Period: 12


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