221 Caroline Drive, Prattville, AL

$ 96,610 - Buy & Hold

3.0 bd | 2.0 ba | 1,377 sqft | 1966 yr | $ 1,020 Rent

25.66 %
9.49 %
Cash on Cash
19.04 %
Net Monthly Cashflow


This 3/2 brick home has 1,377 square feet according to the tax records and was built in 1966.  It's located right next to Greek Park which has boat docks that go right into the Alabama River, literally walking distance!  Capitol Hill Golf Course is extremely close as is a ton of very nice shopping centers with everything from Bass Pro Shops to Belk, JC Penny, the movie theater and tons of great restaurants.  This home is in a B- neighborhood but the surrounding area is much more expensive, and the schools are solid.  This home is in Elmore county so it is in the Stanhope school cluster, which while not elite, is well regarded. The floor plan is good with a large formal living room that has a dining area, a galley kitchen, mud/laundry room, huge walk in pantry, den, huge covered patio, large exterior walk in storage area, and fenced yard. This home is a dog right now, but we bought it right and it will be getting an amazing rehab including:  New roof, 3 new exterior doors, new furnace and condensing unit, new hot water heater, newly refinished hardwood floors in the living room, hall, and three bedrooms, new luxury vinyl plank in the kitchen, laundry room, walk in pantry and bathrooms.  Carpet in the den, new exterior paint on the soffits, fascia and windows, new interior paint,  new electrical sockets, switches, covers, new circuit box, and new lighting.  The kitchen cabinets will be replaced and will have granite, there will be a new dishwasher and stove, and the bathrooms will be gutted, with new valves, stems, trim kits, tile to the ceiling in the tub/shower surround, new vanities, mirrors and toilets.  The master bedroom will have a sliding barn door going into the bedroom and into the master bath.  Our property manager said this house should easily rent for $950-$975 and we believe that if the rehab stays on budget that we will be able to sell this home for $91,000.  There are not a lot of comps in the neighborhood, and the ones that sold were either a year old or not close to the same condition this home will be once finished, so if for some reason the property appraises for a little less, the buyer will need to be prepared to pay a little more out of pocket to have a house that is renovated to this level.  (Let's keep our fingers crossed though, and maybe it will be just fine).  The returns on this home will be amazing.  Property taxes for 2017 were $574.

Buy & Hold Analysis

  • ARV: $96,610
  • Yield-on-Cost: 9.49 %
  • Net Monthly Cashflow: $386
  • Monthly Rent: $1,020

Financial Analysis

  • Loan Amnt: $ 68,250.00
  • All-in Cost: $ 92,592.50
  • Debt Coverage Ratio: 2.12 %
  • Total Out of Pocket: $ 24,342.50
  • Monthly Mortgage: $ 345.81

Expense Assumptions

  • Prop Insurance: $800
  • Prop Mgmt Fee: $1,163
  • Vacancy: $612
  • Capex: $0

Financing Assumptions

  • Down Payment: $22,750
  • Interest Rate: 4.50 %
  • Loan Term Months: 360.00
  • Points: $683

Other Assumptions

  • Closing Cost: $ 910
  • Rental Holding Period: 4.00

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