Investment Overview
This property presents a value-add investment opportunity with strong fundamentals already in place. Major systems have been updated, partial demolition is complete, and the home offers additional finished basement space. The location benefits from a strong school district and proximity to major employment and retail, supporting both resale and long-term demand.
Investment Summary
Purchase Price: $274,900
Bedrooms: 3
Bathrooms: 2.5
Living Area: 1,160 sq ft (above grade)
Additional Space: ~400 sq ft finished basement
Year Built: 1998
Garage: 2-Car Garage
After Repair Value (ARV): $335,000
Key Existing Updates:
β’ Roof installed in 2012
β’ HVAC system less than 5 years old
β’ Water heater installed in 2018
Flip Analysis
Purchase Price: $274,900
Renovation Budget: $40,000
Total Project Cost: $314,900
After Repair Value (ARV): $335,000
Projected Gross Profit: $20,100
This margin reflects a light-to-moderate renovation scope focused on kitchen updates, finishes, and cosmetic improvements.
Rental Analysis
Estimated Monthly Rent: $2,000
Annual Gross Rent: $24,000
Vacancy (5%): $1,200
Effective Gross Income: $22,800
Operating Expenses
Property Management (8%): $1,824
Property Taxes (estimated): $4,000
Insurance (estimated): $1,300
Maintenance Reserves: $1,200
Total Operating Expenses: $8,324
Net Operating Income (NOI): $14,476
Financing
Down Payment (20%): $54,980
Loan Amount: $219,920
Interest Rate: 7.25%
Loan Term: 30 Years
Monthly Mortgage Payment (P&I): ~$1,500
Annual Debt Service: ~$18,000
Cash Flow & Returns
Net Operating Income: $14,476
Annual Debt Service: $18,000
Annual Cash Flow: β$3,524
This property is best positioned as a rehab and resale opportunity, with rental performance serving as a secondary option for long-term appreciation rather than immediate cash flow