332 Dee Drive, Montgomery, AL


$ 123,350 - Buy & Hold

4.0 bd | 2.0 ba | 1,835 sqft | 1974 yr | $ 1,046 Rent

IRR
27.36 %
Yield-on-Cost
9.24 %
Cash on Cash
18.11 %
Net Monthly Cashflow
$387

Description

This 4/2 brick home is in Selbrooke is in the country, you'll pass pecan orchards, a cattle ranch and an Antebellum Civil War Mansion on the way to the sprawling 1,835 square foot (tax records) ranch.   For recreational purposes, tenants will love how close it is to the River!  We just renovated and sold the home next door for $92,000 and it was smaller and didn't have new kitchen cabinets or granite!  This home has brand new kitchen cabinets and granite, a new stove, refrigerator, and dishwasher, completely gutted bathrooms with tiled shower/tub surrounds all the way to the ceiling, new luxury vinyl plank, new valves and trim kits in the shower, new vanities, vanity tops and faucets, new lighting, interior paint, and luxury vinyl plank throughout the home.  The home has a new hot water heater and the furnace and condensing unit are in great shape and have been serviced as part of the renovation. The home has a great floor plan boasting both a formal living room and a family room, as well as a covered patio.  There are storage buildings and a workshop so tenants can stay a long time because it's hard to outgrow this home!  We have successfully done many homes in this neighborhood and it's one of our favorites. It has wonderful income, education and low vacancy and low crime demographics.  We would consider the home to be a B class home in a B- neighborhood.  Rent should be $925 per month which will provide a fantastic return!  Look at our proforma and demographics below as well as the photos and 3D walk through that showcases the renovation quality that will be performed on this home!


Buy & Hold Analysis

  • ARV: $123,350
  • Yield-on-Cost: 9.24 %
  • Net Monthly Cashflow: $387
  • Monthly Rent: $1,046

Financial Analysis

  • Loan Amnt: $ 71,925.00
  • All-in Cost: $ 97,578.25
  • Debt Coverage Ratio: 2.06 %
  • Total Out of Pocket: $ 25,653.25
  • Monthly Mortgage: $ 364.43

Expense Assumptions

  • Prop Insurance: $800
  • Prop Mgmt Fee: $1,192
  • Vacancy: $628
  • Capex: $0

Financing Assumptions

  • Down Payment: $23,975
  • Interest Rate: 4.50 %
  • Loan Term Months: 360.00
  • Points: $719

Other Assumptions

  • Closing Cost: $ 959
  • Rental Holding Period: 4.00


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