4217 Green Meadow Drive, Montgomery, AL


$ 87,000 - Buy & Hold

3.0 bd | 2.0 ba | 1,215 sqft | 1960 yr | $ 900 Rent

IRR
20.53 %
Yield-on-Cost
8.62 %
Cash on Cash
15.75 %
Net Monthly Cashflow
$306

Description

This four sided brick home is located in Montgomery, a quiet working class neighborhood that backs up to a large park with baseball fields, tennis courts, basketball, walking trails and more!  This home is located in a subdivision with very well maintained yards and  good pride of ownership and a strong percentage of owner occupants.  It's one of the closest neighborhoods to the Hyundai Manufacturing Plant which is one of Montgomery's largest employers.  Many other well paying manufacturing and industrial jobs are also close by.  The home has easy access to the interstate and downtown Montgomery with 35,000 or so government jobs. A new roof was put on after the photos.

The homes are newer and I'd give this neighborhood a B- to B for pride of ownership.  Being able to get a property in this good of an asset class rating below $90,000 mark is rare.  This home beats the 1% rule which is getting extremely hard to do anywhere in the U.S.

This home has a good sized living room with ceramic tile that looks like hardwood flooring, this tile extends down the hall.  The eat in kitchen is really huge and the cabinets are updated with new hardware and fresh paint, granite countertops new stainless undermount sink and brand new appliances!   The bedrooms, kitchen and bathrooms have new luxury vinyl plank flooring.  The bathrooms have new plumbing stems and valves, trim kits and shower heads, new vanities, new tile surrounds to the ceiling, towel rods and rings, tp holders and a new curved shower rod.  The hot water heater is replaced and the home has all new interior paint.  The homes also received a new roof, plumbing and electrical updates. This property should rent for $870 per month and should be an excellent cash flow, turn key, income producing property.


Buy & Hold Analysis

  • ARV: $87,000
  • Yield-on-Cost: 8.62 %
  • Net Monthly Cashflow: $306
  • Monthly Rent: $900

Financial Analysis

  • Loan Amnt: $ 65,250.00
  • All-in Cost: $ 88,522.50
  • Debt Coverage Ratio: 1.92 %
  • Total Out of Pocket: $ 23,272.50
  • Monthly Mortgage: $ 330.61

Expense Assumptions

  • Prop Insurance: $800
  • Prop Mgmt Fee: $1,026
  • Vacancy: $540
  • Capex: $0

Financing Assumptions

  • Down Payment: $21,750
  • Interest Rate: 4.50 %
  • Loan Term Months: 360.00
  • Points: $653

Other Assumptions

  • Closing Cost: $ 870
  • Rental Holding Period: 4.00


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