Multi-family
5,412 sqft. Interior
5,127 sqft. Exterior
6 Bathrooms
6 Doors
Property Location
8830 Nesbit Avenue N, Seattle, WA 98103
Washington,
Disclaimer:
As experts in property purchasing, we offer consultations and detailed analyses of rental income properties. However, the images, financial projections, and examples presented are for illustrative purposes only and do not guarantee returns or the expected profitability. The configurations and features of the properties may vary. We strongly recommend that you consider our guidance, but also conduct your own research and due diligence before making any investment decisions. Trust our expertise, but remember that all investments carry inherent risks. You are solely responsible for your investment decisions. Your trust is our priority.
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: $ 280,000
- Agent Fees: $ 42,000
- Mortgage Fees: $ 11,200
- 1st Year's Insurance: $ 14,000
- 1st Year's Taxes: $ 14,000
- Total Closing Costs: $ 361,200
- Renovation Cost: $ 120,000
- Mortgage While Renovating: $ 14,678
- Property Management Fees: $ 17,681
- Total Initial Investment: $ 513,559
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INVESTORS CONSIDERATIONS
- Description Amount
- Listing Price: $ 1,400,000
- Days on Market: 185
- Fix and Flip Max Price: ----------
- After Repair Value (ARV): ----------
- Equity after Renovation (EaR): ----------
- Redfin YoY Home Price Growth in 98103 -1.10%
- Zillow YoY Home Price Growth in 98103 3.90%
RENTAL COMPARISON AND CASH FLOW
- Description Amount
- Monthly Income
- Avg. Monthly Rent ( 3 x 1-bed, 1-bath, 861-sqft rental unit): $ 2,845
- Avg. Monthly Rent ( 3 x 2-bed, 1-bath, 966-sqft rental unit): $ 3,048
- TOTAL Avg. Monthly Rent: $ 17,681
- Monthly Expenses
- Monthly Mortgage Payment: $ 7,339
- Monthly HOA (if any): $ 0
- Monthly Insurance: $ 1,167
- Monthly Tax: $ 1,167
- Monthly Maintenance: $ 1,167
- Monthly Property Management Fees: $ 1,768
- Total Monthly Payment: $ 12,607
- Monthly Cash Flow: $ 5,074
- Annual Cash Flow: $ 60,888
- Return of Investment via Rental Cash Flow: 8 years and 7 months
- Debt-Service Coverage Ratio (DSCR): 1.83
HOW WOULD I RETURN MY INITIAL INVESTMENT?
- Initial Investment: To acquire this property with listing price of $1,400,000 and maximize the rental potential of this property, you will need an initial investment of approximately $513,559. This includes closing costs totaling $361,200 which is a down payment of $280,000, agent fees of $42,000 and mortgage fees of $11,200. Initial investment also includes your renovation budget of $120,000 and mortgage payments during the renovation over 2 months totaling $14,678.
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ARV Comparison Data
Comparable Property Link After Repair Value (ARV) -
Rental Cash Flow:
This 1 bedroom, 1 bathroom, 861 square foot unit can be rented at an average of $2,845 per month. Comparable rents are $2,717, $2,619, $3,200 in this area. Monthly expenses total $12,607. That includes monthly mortgage $7,339, property management fees $1,768, HOA, and then monthly budgets for taxes $1,167, insurance $1,167 and maintenance $1,167. Monthly cash flow is $5,074 totaling to $60,888 in annual rental income. Returning a Total Initial Investment of $513,559 is estimated at 8 years and 7 months.
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1-bed, 1-bath Monthly Rent Price Comparison Data
2-bed, 1-bath Monthly Rent Price Comparison Data
Rental Unit Link Rent Estimate Square Feet $ 2,717 768 $ 2,619 815 $ 3,200 1,000 Rental Unit Details Rental Unit Link: https://www.zillow.com/apartments/seattle-wa/the-hemlock/Ck8xyL/#udp-2057162812
Rent Estimate: $ 2,717
Square Feet: 768Rental Unit Link: https://www.zillow.com/apartments/seattle-wa/the-morrow/ChGYw8/#unit-2071199434
Rent Estimate: $ 2,619
Square Feet: 815Rental Unit Link: https://www.zillow.com/homedetails/8717-1-2-Dayton-Ave-N-Seattle-WA-98103/2060879667_zpid/
Rent Estimate: $ 3,200
Square Feet: 1,000Rental Unit Link Rent Estimate Square Feet $ 3,500 1,000 $ 2,695 999 $ 2,950 900 Rental Unit Details Rental Unit Link: https://www.zillow.com/homedetails/1122-N-84th-St-B-Seattle-WA-98103/452058606_zpid/
Rent Estimate: $ 3,500
Square Feet: 1,000Rental Unit Link: https://www.zillow.com/apartments/seattle-wa/green-lake-tyee-(the-clarke)/5XyCtY/#udp-2088078171
Rent Estimate: $ 2,695
Square Feet: 999Rental Unit Link: https://www.zillow.com/homedetails/7519-Greenwood-Ave-N-4-Seattle-WA-98103/453191129_zpid/
Rent Estimate: $ 2,950
Square Feet: 900 - 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 $0 and get 80% of the $0 in Equity back in cash after the renovation totaling $0. This shortens the original Return of Investment duration of 8 years and 7 months to 8 years and 7 months because the entire Initial Investment of $513,559 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 $12,607, including mortgage payments, taxes, insurance, and maintenance, you can anticipate a Monthly Cash flow of approximately $5,074, resulting in an Annual Cash Flow around $60,888 going forward.
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