The seller, Mackaylee Beach with Sunshine Daily, LLC, is selling a portion of her property's equity on the Lofty Marketplace.
Mackaylee's team completed all of the renovations and has leased all of the units in-house. Mackaylee will continue to serve as the Property Manager of the property for the foreseeable future.
The property has a loan of $800,000. The lender has approved the owner to sell their equity on the Lofty Marketplace. The loan agreements can be viewed here. The seller must continue to make monthly payments on their loan balance, as the lender has first lien on the property. Lofty investors do not pay a portion of the debt payments.
The Rental Yield of 16.76% is based on the value of $619,600 (Total Investment Value - Debt). As the seller pays down their debt over time, their equity percentage in the property will increase and the equity percentage of Lofty investors will decrease proportionally. As a result, the Rental Yield for Lofty investors will decrease as the debt is paid down. The Rental Yield once the loan is fully paid off is projected to be 7.4%.
Click here to learn more about how property owners sell partial ownership of their properties on the Lofty Marketplace.
The Jackson Ten is a fully renovated 10-unit Apartment Building located in Kansas City, Missouri.
Details
- All ten units have been beautifully renovated with new vinyl plank flooring, new carpet, ceiling fans and more. Each unit is approximately 1,095 square feet and features a large eat in kitchen with stove, dishwasher, and fridge provided. Most units have multiple coat closets and outdoor patios or decks. You'll love the spacious bedrooms, large closets and remodeled bathroom. There are 5 garage spaces available (for a monthly up charge). Each unit comes with 2 parking spaces and an extra keyed storage closet. Coin operated W/D on site.
- View pre-renovation photos
- View list of renovations here
- The property appraised for $1,400,000 and is being listed for $1,350,000. View Appraisal here.
- Living in Grandview, Missouri offers a unique blend of suburban comfort and proximity to conveniences. Nestled just South of Kansas City, Grandview boasts a charming community atmosphere. Residents enjoy easy access to amenities, including cultural attractions, shopping districts, and dining experiences. Whether savoring the tranquility of suburban living or engaging in the excitement of the nearby city, Grandview offers well-rounded opportunities.
Property Management and Insurance
- Managed by the seller, Mackaylee Beach
- Insurance Policy from BTC Insurance Services
Occupancy Status
- Unit 1
- 1 year lease (07/01/2023 - 06/30/2024)
- $1,220/month ($1,095 rent + $75 garage + $50 water)
- $1,000 Security Deposit
- The tenant receives rental assistance from the government. Section 8 housing pays for tenant's full rent portion.
- Lease Agreement
- Unit 2
- 1 year lease (09/01/2023 - 08/31/2024)
- $1,175/month ($1,125 rent + $50 water)
- $1,000 Security Deposit
- The tenant is Section 8 and receives rental assistance from the government.
- Lease Agreement
- Section 8 Lease Agreement
- Unit 3
- 1 year lease (08/03/2023 - 06/30/2024)
- $1,175/month ($1,075 rent + $50 water)
- The tenant is Section 8 and receives rental assistance from the government.
- Lease Agreement
- Unit 4
- 1 year lease (09/01/2023 - 08/31/2024)
- $1,250/month ($1,125 rent + $75 garage + $50 water)
- $1,000 Security Deposit
- The tenant receives rental assistance from the government.
- Lease Agreement
- Unit 5
- Processing Section 8 application
- Seller is providing a rent credit of $1,125/month until the unit is leased.
- Unit 6
- 1 year lease (07/01/2023 - 06/30/2024)
- $1,107/month ($1,057 rent + $50 water)
- $1,000 Security Deposit
- The tenant receives rental assistance from the government. Section 8 housing pays $679 and tenant pays $378
- Lease Agreement
- Section 8 Lease Agreement
- Unit 7
- 1 year lease (07/01/2023 - 06/30/2024)
- $1,250/month ($1,125 rent + $75 garage + $50 water)
- $1,000 Security Deposit
- The tenant receives rental assistance from the government. Section 8 housing pays $658 and tenant pays $467.
- Lease Agreement
- Section 8 Lease Agreement
- Unit 8
- 1 year lease (07/01/2023 - 06/30/2024)
- $1,175/month ($1,125 rent + $50 water)
- $1,000 Security Deposit
- The tenant receives rental assistance from the government. Section 8 housing pays $928 and tenant pays $197
- Lease Agreement
- Unit 9
- Vacant
- Section 8 application pending
- Seller is providing a rent credit of $1,125/month until the unit is leased.
- Unit 10
- 1 year lease (09/01/2023 - 08/31/2024)
- $1,250/month ($1,125 rent + $75 garage + $50 water)
- $1,000 Security Deposit
- Lease Agreement
Location Data
- 2.5/5 Neighborhood Rating on Roofstock
- "B" Rating for Zip Code on Niche
Due Diligence Documents
Property Updates
Property Update (09/05/2023):
- The seller and Property Manager, Mackaylee Beach, provided a property update for August.
- Their exact update can be viewed below:
- Rental Income
- Unit 1
- $1,095 received from Housing Authority
- $125 received from tenant ($75 garage and $50 water charge)
- Unit 3 - (NEW MOVE IN 8/3/23)
- $1,016 rent for August not yet received (section 8 will be sending)
- $50 received from tenant (water charge)
- Unit 6
- $679 received from Housing Authority & $378 received from tenant
- $50 received from tenant (water charge)
- Unit 7
- $1,125 received from Housing Authority
- have not received $125 from tenant ($75 garage and $50 water charge)
- Unit 8
- KC Housing Authority owes $726 for July and $1,125 for August (they will catch up, they are just "behind")
- Have not received $50 water charge from tenant
- Owner to cover rent for 5 remaining units = $1125x5 = $5,625
- Total income expected = $11,443
- Total income received to date = ($5,625) + $3,502
- Total collections to follow up on = $2,316
- **team is following up on these collections.
- Leasing Updates
- Unit 4 - lease signing will be 9/1/23 market tenant paying $1,125 rent + $50 water + $75 garage. Pending lease agreement
- Unit 2 - lease signing 9/1/23 section 8 tenant $1,125 rent + $50 water charge (passed S8 inspection 8/14) pending HAP and lease agreement
- Unit 10 - approved section 8 tenant $1,125 rent + $50 water charge + $75 garage, inspection 8/31/23
- Unit 5 - processing application
- Unit 9 - being marketed for rent
- August Maintenance $802
- Unit 6 - PLUMBING: dirty water coming out of bathtub / toilet won't flush / leak from water heater
- Repaired on 8/4/23 for $200
- Unit 1 - Plumbing back up
- Repaired on 8/3/23 for $302
- Unit 6 - Requested fan for wet/humid carpet
- Repaired on 8/14/23 for $50
- Unit 3 - Garbage disposal fell off /corner cabinet/closet door guide
- Repaired on 8/15/23 for $50
- Unit 8 - Ac not working and hot water
- Repaired on 8/14/23 for $50
- Unit 2 - Section 8 Inspection
- Repaired 8/14/23 for $75
- Unit 10 - Walk through prior to move in
- Repaired on 8/28/23 for $75
- The $802 in maintenance costs from August will be split between the seller and the Operating Reserve, based on the equity split at the time the repairs occurred.
- For example, if the seller owned an average of 90% of the property's equity when these repairs occurred, they would pay $721.80 and $80.20 would come from the Operating Reserve, which has been contributed towards by investors on Lofty. This split will be calculated and added to the property page shortly.
- The Lease Agreements are being redacted and will be uploaded to the property's Dropbox folder shortly as well.
Property Update (09/01/2023):
- Governance Results:
- The Governance Voting results are back for the seller-proposed vote to refinance her existing loan.
- The winning vote is:
- Yes, approve the refinancing.
- This option received 62.06% of the votes as calculated by the new partial governance program. A total of 10,378 tokens participated in this governance proposal.
- This higher loan amount will increase the yield for owners from 16.7% to 20.3% (based on July's cash flow, including rent credits). It will also increase the default risk slightly, because the loan amount is now higher and the seller is making the debt payments in full.
- Once the loan agreement has been signed, owners will receive an email update. The rental yield will increase & the agreement will be uploaded to the property's Dropbox folder.
Property Update (08/28/2023):
- Governance Vote:
- The seller of this property, Mackaylee Beach, is proposing a vote to refinance her ballooning $800,000 loan (bearing an 11% interest rate) for a $910,000 loan at an 8% interest rate. You can view the term sheet for the cash-out refinance loan here.
- Lofty investors do not pay a portion of the monthly loan payments. They are paid in full by the seller. This new loan will reduce the seller's monthly loan payments, due to the lower interest rate.
- This higher loan amount will increase the yield for owners from 16.7% to 20.3% (based on July's cash flow, including rent credits). It will also increase the default risk slightly, because the loan amount is now higher and the seller is making the debt payments in full.
- The lender has given their approval for Mackaylee to sell a portion of her equity, as long as she maintains at least 51% equity ownership.
- Mackaylee's reasoning for the refinance is below, word-for-word:
- Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
- I am proposing a strategic opportunity to refinance the ballooning $800,000 loan (bearing an 11% interest rate) for a $910,000 loan at an 8% interest rate. The current interest payment is $7,333 per month. The new interest payment will be $6,067 per month. In addition to the monthly cost savings for myself, this refinance will unlock a higher yield for the additional equity owners. This adjustment aligns with the current market conditions and could lead to even larger returns over time. While it's important to acknowledge that the larger loan amount introduces a slight increase in risk, it is concluded that the opportunity strikes a balance between maximizing returns and maintaining an overall benefit of the investment. Here you will find the Proposed term sheet.
- In other news, over the last 3 weeks, the Jackson Ten has welcomed 4 additional signed leases and deposits, which brings the occupancy to 80%. Within the next 30 days, the Jackson Ten will be 100% occupied. Nine out of Ten leases are Section 8 guaranteed rent. Myself and my team have worked hard over the last 12 months to make the Jackson Ten home for these occupants, and a great investment vehicle for you and I.
- A property update email will be sent out shortly with more details on the 4 new leases, along with an update to the property page.
- The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Thursday, August 31st once the voting period ends.
