Two Rental House Portfolio

2356 24th St Ensley (Birmingham) and 820 4th Ct W, Birmingham
$89,000 for both
11.98% Cap Rate
Rent $1,450/mo
Good Tenants
2356 24th St W, Ensley (Birmingham)
820 4th Court W, Birmingham
Two rental house porfolio. $89,000 for both properties together, not each one. Owner selling because he is moving to the Coast, where he already has other investments. $89,000 sales price is an 11.98% cap rate for good properties with current tenants paying on time. 2356 24th St W, Ensley (Birmingham): 2BR, 1BA with 992 sf, built in 1930. Rent $675 per month. Taxes $948/yr, casualty and liability insurance $811/yr. Self managed with no vacancies, but if you impute a 10% management fee and a 5% vacancy and credit reserve, and you impute $500/yr repair reserves, the NOI is $4,666 per year. 820 4th Ct W, Birmingham: 2BR, 1BA with 806 sf, built in 1940. Rent $775 per month. Taxes $756/yr, casualty and liability insurance $698/yr. Self managed with no vacancies, but if you impute a 10% management fee and a 5% vacancy and credit loss reserve, and you impute $500/yr repair reserves, the NOI is $5,998. If you buy with 20% down payment at 9.5% interest rate with payments calculated on a 20-year amortization ($663.68 per month) then the Debt Service Coverage Ratio is 1.34%, which will meet any lender's underwriting requirements.
Denise Evans, JD, CCIM Butler Evans Real Estate Tuscaloosa, AL 205-310-3799 Email Me
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