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Updated over 4 years ago on . Most recent reply
St Paul 203k Househack Analysis
| PROPERTY INFO | |
| Property Address | 594 Brunson St, STP 55130 |
| MLS# | 5352326 |
| Number of Units (Duplex, Triplex, 4plex) | 2 |
| Bedrooms/Bathrooms | 4/2 |
| Crime Level (Low/Medium/High) | Low |
| Property Listing Price Your Offer Price |
$ 139,900.00 $ 129,500.00 |
| Rehab Needed? (None/Light/Medium/Heavy/Full) | Heavy |
| Square Footage | 1,501 |
| Rehab Price/Square Foot (Refer to Key on Right) | $ 35.00 |
| Total Rehab Estimate | $ 52,535.00 |
| Total Cost (Purchase + Rehab) | $ 182,035.00 |
| MINIMUM Down Payment Required for Purchase | $ 6,371.23 |
| Conventional Loan Amount (Total - Down payment) | $ 175,663.78 |
| FULL OCCUPANCY CASH FLOW | |
| Est. Monthly Rent (using www.zillow.com) | $ 2,200.00 |
| 1% Rule (Rent should be 1% of Purchase + Rehab) | $ 1,820.35 |
| Does this PASS the 1% Rule? | YES |
| Est. Monthly Payment (PITI + PMI) - Mortg. Calculator | $ 1,296.41 |
| Est. Monthly OpEx (PITI + PMI + Utilities + Reserves) | $ 1,994.41 |
| Est. Monthly Cash flow (Rent - OpEx) | $ 205.59 |
| CoCRoI | 38.7% |
| EQUITY AND PROFIT | |
| $ 192,000.00 | |
| Flip "Profit" (Equity) | $ 16,336.23 |
| Return on Down Payment Investment | 256.41% |
ASSUMPTIONS
| Utilities (Varies by Property) | ||
| Electricity | ||
| Water & Sewer | 100.00 | |
| Garbage | 60.00 | |
| Shoveling/Lawn Care | 120 | |
| Total | $ 280.00 | |
| Reserves | ||
| Vacancy (%) | 5.00% | $ 110.00 |
| Repairs & Maintenance (%) | 7.00% | $ 154.00 |
| CapEx (%) | 7.00% | $ 154.00 |
| Management Fees (%) | $ - | |
| Total (19% Reserves) | $ 418.00 |
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Original Listing Price is $139,900. Offering $10,500 below asking price b/c that's where the numbers work, given $1100 in rent after a heavy rehab of the two units.
Heavy rehab implies budgeting for a new roof, updated kitchens, baths, paint, flooring.
St. Paul and Minneapolis rehabbers/ 203k househackers, hope to get some feedback from you. Specifically regarding your thoughts on the rents and the ARV, as I tried my best to estimate those based on Zillow comps.
Thanks,
AJ
Most Popular Reply
Originally posted by @AJ Smith:
@Daniel Anshus ah understood, my mistake. That MLS number was a holdover from an analysis that didn't pass the sniff test.
Could you elaborate more on the Payne-Phalen point? The Crime Rating from Trulia is Low (tried to use the Minneapolis.gov site but there's so much information and I'm not sure how to best interpret it.) ---- is there another reason why this area isn't seen as a good area to invest?
I've done some bigger commercial real estate appraisals in the Payne-Phalen area and have spoke with several owners. They all have security cameras, nicer locks on their entrances, but nothing else as an extra precaution. They rarely experienced break-ins but did have some minor loitering in the area. The area is not as rough as it may seem, East Wheelock Parkway is goes right through there and right off the beach and golf course. I do not frequent the area but have done enough work there to give my two cents.