4708 Sunshine Drive, Montgomery, AL


$ 90,647 - Buy & Hold

4.0 bd | 2.0 ba | 1,425 sqft | 1965 | $ 900 Rent

IRR
31.02 %
Yield-on-Cost
9.44 %
Cash on Cash
19.41 %
Net Monthly Cashflow
$303

Description

This 4/2 brick home is located in Sunshine Acres/Seth Johnson subdivision a neighborhood that has been significantly on the rise due to a large number of renovations that have taken place. This has been our best performing neighborhood, it's a street with solid C+ to B- pride of ownership. We have probably renovated 6 homes on this street alone. Right now we have four homes in this neighborhood, so if you are looking for a very attractive package you can do really well by assembling several really nice properties that have great returns! This property has a great floor plan including a large formal living room and a formal dining area, the kitchen has a small dining area as well, and the large back yard is privacy fenced. This home has a new roof, new hot water heater, and new hvac, refinished hardwood floors, new lighting, paint, appliances, new bathroom vanities, mirrors and much more. The full scope of work will be posted below within 48 hours. This home is rented for $830 per month and the lease runs through September of 2019. It's rare to get a property that beats the 1% rule in today's market but we just did! Also, property taxes are so low that you get much better cash flow for the price in Alabama.


Buy & Hold Analysis

  • IRR: 31.02 %
  • Net Cashflow: $ 3,167
  • Rehab Est: $ 0
  • Cap Rate: 8.57 %
  • Monthly Rent: $ 900
  • ARV: $ 90,647
  • Cash on Cash: 15.46 %
  • Taxes: $ 274

Financial Analysis

  • Loan Amnt: $ 66,320
  • All-in Cost: $ 85,055
  • Debt Coverage Ratio: 8.57 %
  • Total Out of Pocket: $ 18,735
  • Monthly Mortgage: $ 366

Expense Assumptions

  • Prop Insurance: $ 680
  • Vacancy: $ 540
  • Prop Mgmt Fee: $ 864
  • Maintenance: $ 540
  • 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: $ 906
  • Rental Holding Period: 12


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