824 Federal Drive, Montgomery, AL


$ 126,780 - Buy & Hold

3.0 bd | 2.0 ba | 2,364 sqft | 1952 yr | $ 1,248 Rent

IRR
25.48 %
Yield-on-Cost
9.33 %
Cash on Cash
18.44 %
Net Monthly Cashflow
$473

Description

This home is located in one of the proud historic areas of Montgomery close to downtown and just down the street from Morningview Elementary School.  The house was built in 1952 and has 2,364 square feet according to the tax records, the home puts you close to everything and there is some gentrification going on surrounding this home.  It's close to Maxwell Air Force Base and there is so much to love about this  home that will keep long term tenants and provide great cash flow for years to come.

Let me begin with the huge fenced yard that has mature landscaping, the over-sized two car detached garage, the fact that it's four sided brick and that it has a huge cement courtyard that is perfect for entertaining guests!  The stately magnolia tree, bay box window and portico that welcomes you into the foyer add to the charm.  The formal living room is stately with gleaming hardwood floors and a fireplace, not to mention that it's huge!  The formal dining room provides an elegance.  The kitchen is right off of that and has a swinging door that leads into a keeping room/office that has a second fireplace and built in book cases.  There is a large rec room, the owners suite has his and her closets, and the bathrooms have a historic feel and yet they are fresh and updated.  This home should rent for $1,050 per month.


Buy & Hold Analysis

  • ARV: $126,780
  • Yield-on-Cost: 9.33 %
  • Net Monthly Cashflow: $473
  • Monthly Rent: $1,248

Financial Analysis

  • Loan Amnt: $ 86,250.00
  • All-in Cost: $ 117,012.50
  • Debt Coverage Ratio: 2.08 %
  • Total Out of Pocket: $ 30,762.50
  • Monthly Mortgage: $ 437.02

Expense Assumptions

  • Prop Insurance: $800
  • Prop Mgmt Fee: $1,423
  • Vacancy: $749
  • Capex: $0

Financing Assumptions

  • Down Payment: $28,750
  • Interest Rate: 4.50 %
  • Loan Term Months: 360.00
  • Points: $863

Other Assumptions

  • Closing Cost: $ 1,150
  • Rental Holding Period: 4.00


Contact An Agent About This Property