6812 Breezy Hill Dr., Austin TX 78724
Picture of the front of property
Sale Price $30,000
Property description
This property is a lot for a manufactured home. It has a concrete drive way and all the untility hookups. There used to be a home on the lot but it has been moved. It is in a subdivision of other manufactured homes. This property is most ideal for an investor who wants to put a house on the lot or a family looking for a lot for their manufactured home.
There is a new middle school being built around the corner and it should be open in 2008. The elementary school is not far away either. The lot is one of the larger lots in the neighborhood. Take a look at some of the other properties on the market. There are several new subdivisions being built in the area and this should cause the value to go up as those new properties come online and pull the value of this property up. http://jm117.com/ is a link to a development right around the corner from this lot that has lots starting at $40,000!
The area has been growing tremendously over the past few years. Please click the following link for a demographics study.
Property History
The property was purchased as a foreclosure by the current owner and has been vacant since its purchase. It has been kept in decent shape and is now ready to received the attention that it needs to make it a wonderful home site. Now the owners have bigger and better projects to work on and want to find the right person who can love this property the way that they used too. In the past it has gotten people who have occupied it but never loved it the way it needs to be loved.
If you are the right person and want to make a cash offer the owners are willing to consider taking a discount on the property in order for you to be able to make it work. Just submit your cash offer and it can be considered! We are investors and will are offering owner financing on the property.
If you need owner financing we are looking for someone who can put down at least about 10% and who can afford payments of at least $250 per month with a 10% interest loan. That sounds easy enough and it is!
Development Analysis
Our back of the envelope analysis included:
|
Manufactured Home |
15000 |
|
|
Painting |
500 |
|
|
Misc |
1400 |
|
|
Carpet |
1500 |
|
|
Lot Costs |
30000 |
|
|
Total |
|
$48400 |
These figures are only estimates and you should hire a professional to fully investigate.
Many of the figures are very rough and include paying professionals to do some if not all of the work. It may be possible to get the numbers lower but you would need to investigate that possibility on your own.
If you then sold the house for $85,000 you would generate a profit of roughly $36,600. If you use the owner financing on the lot for $3K down plus paid cash for the other development costs your return on investment would be $36.6/$21.4 = 171.02% if you got a cash buyer. If you had to owner finance the sale to a new buyer then your annual return would be different. If you got $8,500 down and $700 P & I per month then your return would be calculate as follows. $700 – $250 lot payment = 450 cash flow x 12 = $5,400 / $(21,400 – 8,500=) 12900 = 41.86% per year!!!
Rental Analysis
If the property were purchased and developed and turned into a rental my analysis indicates that the property would generate a 21% average annual cash on cash return and a 30% total return if held for 5 years and sold for $75K. The rental rate that was used was on $950 per month. For a four bedroom two bath house that is cheap, but the property is a manufactured home and that has to be taken into consideration when factoring the rental amount. If the sales price could be achieved before the 5 year term the return would rocket skyward!
To see the analysis please click for link for the Property Analysis.
Owner Financing
If you would like to purchase the property with owner financing I have attached the following documents for you to fill out to submit your information to us as part of the contract.
I have also attached some examples of the note and deed of trust and other documents that will be a part of the financing package. If you have any questions about them please don't hesitate to ask, but note that in no way, form, or fashion should any information be construed as legal advise. If you need legal advise please consult your attorney.
Please click the link for a copy of the sellers disclosure notice
If you have any questions about the property please email me at Ron@theseaygroup.com.
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