4562 Hodge Rd Memphis, TN 38109
  • $84,774
  •  
  •  

Current Rent | Market Rent | Custom
The values are total monthly rent for all units.

Current Rent: Monthly rent under current lease.

Market Rent: Estimate of monthly rent if the property was leased in the current rental market.

Custom Rent: Your own rent input in the Assumptions section below.
$0.46/sf
$964
Unlevered Cash Flow
First year net cash flow received after all operating expenses, capital expenditures, property taxes, and assuming 5% vacancy and no debt.
 
$6,271
Appreciation
Annual appreciation percentage is adjusted based on the selection in Manage Assumptions section below.
 
1.8%
Gross Yield
Monthly rent x 12 months, divided by purchase price.
 
13.6%
Unlevered Net Yield
Annual net operating income minus capital expenditures, divided by purchase price. Assuming 5% vacancy and no debt.
 
7.4%
Levered IRR
A measure of annualized net return on an equity investment. Equals the discount rate at which the sum of the present value of all cash flows is zero. Calculation based on values in Manage Assumptions, 5 year hold period, 3% annual rent growth, and estimated disposition fees of 3.5%.
 
16.7%

About This Roof

  • High Gross Yield
  • Less than 9 miles from Downtown Memphis
  • Tenant is section 8
  • The current lease runs through December 2018
  • Year Built: 1958
  • Sq Ft: 2,080
  • Bedrooms: 4
  • Flood Risk:
    X
    Flood insurance policy is not required.

    For additional information click here.
  • Lot Size: 11,200
  • HOA: none
  • Bathrooms: 1.5

Schools

Lease and Tenant Summary

Financing Options

Property Management Options

Investment Terms

Property Location

Map Data
Map data ©2017 Google
Map DataMap data ©2017 Google
Map data ©2017 Google

Roofstock Certified

This property is Certified.
The Roofstock Certification Process:
  1. A property inspection conducted by an experienced national inspection firm
  2. Property valuation and rental market analysis to ensure properties are priced fairly
  3. An estimate of the cost of major repairs
  4. Preliminary title report with no uninsurable encumbrances or liens and preliminary title commitments, where applicable
  5. Review and summarize key lease terms including monthly rent, lease-end date, security deposit, and utility responsibility
  6. Review tenant payment history to determine that they have adhered to the lease with timely payments
  7. Home disclosure reports that summarize any local risks including natural hazards and local crime rates
  8. Certified property managers, vetted by Roofstock, that are experts in the local area
The Roofstock valuation range represents the highest and lowest adjusted values for comparable properties to a certified property selected by Roofstock and analyzed by the HouseCanary model. The highest and lowest adjusted values used for the range and the adjusted comparable value are based upon at least 3 properties sold within the past 12 months and that are the most similar to the property in location, size, condition, age, style, and design, as selected by Roofstock and valued by the HouseCanary model. If a HouseCanary comparable value is not available for a certified property, the Roofstock valuation range is based upon a calculated weighted average of the valuation reports for a certified property with the width of the range being the combined precision of all valuation reports. All valuation reports can be found in the diligence vault.
  • Property Valuation:
    $85,000 - $99,000
  • Estimated Market Rent: $950
  • Roofstock performs two types of inspections in our certification process. Our standard inspection is an Interior and Exterior Inspection. In some circumstances we provide an Exterior Only Inspection at the time of listing. The Exterior Only Inspection covers most of the major structural elements of the house, and the interior portion of the inspection will be completed after signing the Purchase & Sale Agreement (PSA) and prior to the close of escrow. The PSA will include an Inspection Contingency, which allows the buyer to cancel the contract if the Interior Inspection uncovers material issues with the house.
    Inspection Report:
    Inspection: Interior & Exterior
  • Title status shows whether there is any title remediation that must take place prior to closing on the property.

    ‘Clear' indicates that there are no outstanding issues with title; 'Clearance at Closing' indicates that there may be minor issues that the title company will remediate prior to closing.
    Title: Clearance at Closing

Diligence Vault

Full Property Analysis
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Manage Assumptions

Operating Expenses
Expenses Summary
Property Management 8.0%
Leasing Commissions 2.6%
Taxes / HOA / Insurance 18.7%
R&M / CapEx 13.6%

Total 42.9%

Operating Expenses are estimated annual expenses divided by your assumed total annual rent, while also assuming a vacancy factor of 5%. These expenses are estimates provided as a reference; actual expense levels may vary and will depend on several factors including specifics of any tax assessments, insurance coverage levels, property location, actual repair and maintenance costs and other factors.

43%
Monthly Rent
Note that on average about 70-80% of operating expenses are not impacted by the amount of rent, so consider decreasing your assumed Operating Expenses percentage accordingly if you are assuming a higher rent.
$964
Financing
Includes 1% in loan-related fees and closing costs.
75%
Loan Interest Rate
The loan interest rate of 4.625% is based on 75% or lower loan to home value for a 30 year loan.
4.625%
Closing Costs & Misc
Includes an estimate of acquisition closing costs for a typical transaction. Adjust higher or lower for specific circumstances or to include contingency for unforeseen costs and expenses, or points to buy-down interest rate.
1.50%
Use Rent:

Use Appreciation:

Financial Pro Forma

Initial Year Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE
Gross Rent $11,568 $11,915 $12,272 $12,641 $13,020
Economic Vacancy Factor -$578 -$596 -$614 -$632 -$651
Net Revenue $10,990 $11,319 $11,659 $12,009 $12,369
OPERATING EXPENSES
Property Management -$879 -$906 -$933 -$961 -$990
Leasing Fees -$289 -$298 -$307 -$316 -$325
HOA Fees $0 $0 $0 $0 $0
Property Taxes -$1,564 -$1,593 -$1,622 -$1,651 -$1,681
Insurance -$486 -$495 -$504 -$513 -$522
Repairs & Maintenance -$950 -$979 -$1,008 -$1,038 -$1,069
Capital Expenditures -$549 -$566 -$583 -$600 -$618
Total Expenses -$4,719 -$4,836 -$4,956 -$5,080 -$5,207
TOTAL OPERATING CASH FLOW $6,271 $6,483 $6,703 $6,929 $7,162
PROPERTY PURCHASE AND SALE
Purchase / Sale Price -$84,774 $92,765
Acquisition Fees / Closing Costs -$1,272
Contingency $0
Disposition Fees / Closing Costs -$3,247
Net Purchase / Sale Proceeds -$86,046 $89,518
FINANCING
Down Payment -$21,193
Loan Fees -$848
Loan Payments -$3,923 -$3,923 -$3,923 -$3,923 -$3,923
Loan Balance $63,581 $62,577 $61,527 $60,426 $59,274 $58,068
Total Financing / Debt Service Cash Flows -$22,041 -$3,923 -$3,923 -$3,923 -$3,923 -$3,923
RETURN
Unlevered Cash Flow -$86,046 $6,271 $6,483 $6,703 $6,929 $96,680
Levered Cash Flow -$23,313 $2,348 $2,561 $2,780 $3,006 $34,690
Unlevered IRR 8.4%
Levered IRR 16.7%
Initial Year Year 1 Year 2 Year 3 Year 4 Year 5
ASSUMPTIONS
Purchase Price $84,774
Down Payment 25.0%
Interest Rate 4.625%
Loan Term (yr) 30
Rent $964
Rent Growth - 3.0% 3.0% 3.0% 3.0% 3.0%
Home Price Appreciation 1.8% 1.8% 1.8% 1.8% 1.8%
Vacancy Rate - 5.0% 5.0% 5.0% 5.0% 5.0%
Property Management Fee 8.0%
Leasing Commissions 2.6%
Insurance Cost (rel to prop value) 4.4%
Property Tax 14.2%
R&M 8.6%
CapEx 5.0%
Acquisition Costs 1.5%
Initial Capital Costs 0.0%
Disposition Costs 3.5%
Loan Fees 1.0%

This Financial Pro Forma is provided to you for general guidance purposes only. It is an estimate of possible financial return on your real estate investment and may not be indicative of your actual financial results. The numbers are based upon calculations using (i) the numbers you input by adjusting your online Property Assumptions sliders. (ii) numbers you share with Roofstock Advisors and (iii) numbers based upon general financial and economic averages, assumptions and conditions in the real estate industry.

Financial and real estate market conditions as well as economic drivers such as interest rates, inflation and taxation are subject to rapid fluctuations and financial returns will differ in each local geographic market.

This Financial Pro Forma is not to be used as a financial plan and not intended as part of a solicitation to purchase specific investment properties.

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