Huntsville AL Deal Analysis

[Jeff Howard]

3809 Timwood Dr NW,Huntsville, AL 35810

3 beds2 baths1,534 sqft

Price: 63K

Turnkey providers description: This 3/2 1,534 square ft home was built in 1980 and it’s right next door to a ball field and the neighborhood is right across the street from a large park. The yard is fenced, and the home has a great floor plan with a large living room, separate den and formal dining room. This home has been totally renovated and is in excellent condition. It should rent for $850 per month.

I would finance the home 80/20 most likely giving me a mortgage payment of $263/month. Assuming $1900 Purchase costs, and $5000 rehab to rent ready (which I hopefully won't need to do if it is actually "turnkey" right?), my total cash needed is estimated at $19500.

Using a calculator with 10% vacancy 10% Property Management, 7% Maint/repair, 2% capex, and a random $40 for landscaping/misc per month, and last taxes were $440 annualy according to Zillow (.45% prop tax in Madison county).

Net cash flow: $220

Cap Rate: 9.2%

COC: 13.6%

R/V: 1.3%

What do you think????

Thank you!

Jeff

[Christy Harris]

Hey @Jeff Howard....I looked in the MLS, and the price seems below average price for the described shape of the house - looks like they bought the house last year for 35k. Comparable homes in the neighborhood are 4/2 - so might want to go a little lower for your rent estimate calculations - 800 (not saying not to ask for 850). It says average days on market for rentals is 70 days. Also, looking at emaps - the tax appraised value is 82,500 - so I might bump the taxes up to 700/year.

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