4345 Coventry Road, Montgomery, AL


$ 85,000 - Fix & Flip

3.0 bd | 2.0 ba | 1,756 sqft | 1961 | $ 987 Rent

ARV
$85,000
Net Profit
$-12,338
Net ROI
-13.00 %

Description

This 3/2 brick home is in Seth Johnson or Sunshine Acres, one of our historically best performing cash flow neighborhoods in Montgomery.  We have done three houses on this street and somewhere between 15-20 in the subdivision over the last four years.  This house has a lot to offer, a large formal living room, huge den with a fireplace, eat in kitchen, giant fenced yard, a storage building and a carport.  Hardwood floors are a great bonus, the roof is in great shape, the furnace appears to be newer, and the condensing unit will be replaced.  This house will have a new kitchen that will be totally reworked with new cabinets, granite and new appliances.  New interior paint, new lighting, new luxury vinyl plank in the bathrooms, new bathroom cabinets, mirrors, and totally gut of the tile and new sheetrock, and new tile to the ceiling while also having valve stems and trim kits replaced.  The hot water heater will be replaced if older than 8 years.  This home went under contract today and should close in a couple of weeks.  The other house we just finished on the same street has 15 applicants scheduled to see it at the open house next week!  This home should rent for $900 and there are other rentals in Zillow that are similar size and 4/2 that are asking $950.  (The 3D Tour Below Shows The Renovation Quality that Typifies Our Work, budgets depend upon the project so it won't be exact, but a full scope will be provided).  Renovation scope on this home will be completed next week, it should close in two weeks and be renovated within 4 weeks after that.  I was not able to get pictures of the two bathrooms because there was no power and not enough light and will provide those and bedroom pictures next week.  We believe the price on this home will be in the $84,000-86,000 range.  With rents in the $850-$900 range this should be a great buy!


Fix & Flip Analysis

  • IRR: 33.46 %
  • Net Cashflow: $ 4,364
  • Rehab Est: $ 0
  • Cap Rate: 10.17 %
  • Monthly Rent: $ 987
  • ARV: $ 85,000
  • Cash on Cash: 22.72 %
  • Taxes: $ 281

Financial Analysis

  • Loan Amnt: $ 68,000
  • All-in Cost: $ 87,210
  • Debt Coverage Ratio: 10.17 %
  • Total Out of Pocket: $ 19,210
  • Monthly Mortgage: $ 376

Expense Assumptions

  • Prop Insurance: $ 638
  • Vacancy: $ 592
  • Prop Mgmt Fee: $ 948
  • Maintenance: $ 592
  • 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: $ 850
  • Rental Holding Period: 12


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