Condo
769 sqft. Interior
0 sqft. Exterior
1 Bathroom
1 Door
Property Location
321 10th Avenue S #705, Seattle, WA 98104
Washington,
Disclaimer:
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Comprehensive Financial Details
At Great Front Door, transparency is key. We want you to have a clear understanding of all costs associated with your property investment. Below, we break down the pricing for Rental Income Property to help you make an informed decision
INVESTMENT DETAILS
- Description Amount
- Cash Due at Closing
- Down Payment: $ 59,976
- Agent Fees: $ 8,996
- Mortgage Fees: $ 2,399
- 1st Year's Insurance: $ 2,999
- 1st Year's Taxes: $ 2,999
- Total Closing Costs: $ 77,369
- Renovation Cost: $ 20,000
- Mortgage While Renovating: $ 3,074
- Property Management Fees: $ 3,472
- Total Initial Investment: $ 103,915
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INVESTORS CONSIDERATIONS
- Description Amount
- Listing Price: $ 299,880
- Days on Market: 41
- Fix and Flip Max Price: $ 316,933
- After Repair Value (ARV): $ 481,333
- Equity after Renovation (EaR): $ 77,538
- Redfin YoY Home Price Growth in 98104 53.40%
- Zillow YoY Home Price Growth in 98104 -1.70%
- Max. Cash Available from EaR eligible for Cash Out Refinance: $ 62,030
- Remaining Total Initial Investment after Cash Out Refinance: $ 41,885
- Additional Cash Available after Total Initial Investment is Returned: $ 0
- Return of Investment via Cash Out Refinance: 98 years and 7 months
RENTAL COMPARISON AND CASH FLOW
- Description Amount
- Monthly Income
- Avg. Monthly Rent ( 1 x 1-bed, 1-bath, 785-sqft rental unit): $ 3,472
- TOTAL Avg. Monthly Rent: $ 3,472
- Monthly Expenses
- Monthly Mortgage Payment: $ 1,537
- Monthly HOA (if any): $ 803
- Monthly Insurance: $ 250
- Monthly Tax: $ 250
- Monthly Maintenance: $ 250
- Monthly Property Management Fees: $ 347
- Total Monthly Payment: $ 3,437
- Monthly Cash Flow: $ 35
- Annual Cash Flow: $ 426
- Return of Investment via Rental Cash Flow: 244 years and 3 months
- Debt-Service Coverage Ratio (DSCR): 1.22
HOW WOULD I RETURN MY INITIAL INVESTMENT?
- Initial Investment: To acquire this property with listing price of $299,880 and maximize the rental potential of this property, you will need an initial investment of approximately $103,915. This includes closing costs totaling $77,369 which is a down payment of $59,976, agent fees of $8,996 and mortgage fees of $2,399. Initial investment also includes your renovation budget of $20,000 and mortgage payments during the renovation over 2 months totaling $3,074.
- After Repair Value (ARV): The property has an After Repair Value (ARV) of $481,333. The maximum price for a Fix and Flip is estimated at $316,933. After completing all renovation costs, the Equity After Renovation stands at $77,538. Since there is positive equity after the renovation, you can perform a Cash Out Refinance with your mortgage assuming the ARV and get 80% of this equity back totaling $62,030 in cash after the renovation. This shortens the original Return of Investment duration because the entire Initial Investment can be cashed out of the property after the renovations and Cash Out Refinance are complete.
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ARV Comparison Data
Comparable Property Link After Repair Value (ARV) $ 520,000 $ 357,000 $ 567,000 Comparable Property Link: https://www.zillow.com/homedetails/590-1st-Ave-S-806-Seattle-WA-98104/305486466_zpid/
After Repair Value (ARV): $ 520,000Comparable Property Link: https://www.zillow.com/homedetails/108-5th-Ave-S-UNIT-511-Seattle-WA-98104/72497987_zpid/
After Repair Value (ARV): $ 357,000Comparable Property Link: https://www.zillow.com/homedetails/100-1st-Ave-S-UNIT-2-Seattle-WA-98104/48993465_zpid/
After Repair Value (ARV): $ 567,000 -
Rental Cash Flow:
This 1 bedroom, 1 bathroom, 785 square foot unit can be rented at an average of $3,472 per month. Comparable rents are $4,300, $2,422, $3,695 in this area. Monthly expenses total $3,437. That includes monthly mortgage $1,537, property management fees $347, $803 HOA, and then monthly budgets for taxes $250, insurance $250 and maintenance $250. Monthly cash flow is $35 totaling to $426 in annual rental income. Returning a Total Initial Investment of $103,915 is estimated at 244 years and 3 months.
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1-bed, 1-bath Monthly Rent Price Comparison Data
Rental Unit Link Rent Estimate Square Feet $ 4,300 753 $ 2,422 734 $ 3,695 868 Rental Unit Details Rental Unit Link: https://www.zillow.com/apartments/seattle-wa/yesler-towers/Ckgpcp/#udp-342175310
Rent Estimate: $ 4,300
Square Feet: 753Rental Unit Link: https://www.zillow.com/rental-manager/price-my-rental/results/590-1st-ave-s_-seattle_-wa-98104/?unit=601
Rent Estimate: $ 2,422
Square Feet: 734Rental Unit Link: https://www.zillow.com/apartments/seattle-wa/seattle-quilt-building/CmWfcm/#unit-2069977437
Rent Estimate: $ 3,695
Square Feet: 868 - Return of Investment: Since there is positive Equity after the Renovation, you can perform a Cash Out Refinance with your mortgage assuming the After Renovation Value of $481,333 and get 80% of the $77,538 in Equity back in cash after the renovation totaling $62,030. This shortens the original Return of Investment duration of 244 years and 3 months to 98 years and 7 months because the entire Initial Investment of $103,915 which included Closing Costs, Renovation Budget and getting tenants in, can be cashed out of the property after the renovations and Cash Out Refinance are complete. With Total Monthly Expenses amounting to $3,437, including mortgage payments, taxes, insurance, and maintenance, you can anticipate a Monthly Cash flow of approximately $35, resulting in an Annual Cash Flow around $426 going forward.
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