Property originally listed for sale on the marketplace by Zeerco, LLC.
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The Operating Reserve balance ($3,557) is below half full.
Owners voted to apply 100% of cash flow to replenish the reserve until it is half full ($4,375), and then apply 50% of cash flow until the reserve is full ($8,750).
Based on the projected monthly cash flow ($1,471.97), it will take <1 month for the reserve to be half full and ~5.9 additional months to go from half full to full.
The Operating Reserve balance is part of the property value. As a result, the property will increase in value as the Operating Reserve is replenished.
2-Unit property (Duplex) located in Lorain, Ohio.
Details
- Located a few blocks from Lake Eerie
- Back unit has an attached one car garage with 4 bedrooms and 1 full bathroom with a separate living room and dining room
- Front unit has 2 bedrooms and 1 full bathroom with a large living room and dining room
- Located on a 6,534 sq ft lot
Property Management and Insurance
Occupancy Status
Front Unit
- 1 year lease (05/01/2023 - 04/30/2024)
- $1,050/month
- $985 Security Deposit
- Lease Agreement
- Same tenant was previously on a 1 year lease (05/22/2022 - 04/30/2023) at $985/month
Back Unit
- 1 year lease (10/01/2022 - 9/31/2023)
- $900/month
- $1,800 Security Deposit
- Lease Agreement
Location Data
- 2.5/5 Neighborhood Rating on Roofstock
- "C+" Rating for Zip Code on Niche
Due Diligence Documents
Property Updates
Property Update (05/09/2023):
- Front Unit: The tenants signed a 1 year lease renewal at $1,050, a $65 increase from the previous lease of $985.
- The new lease term is 05/01/2023 to 04/30/2024.
- The lease renewal fee is $195 and will be deducted from May's rent.
- The tenant will be responsible for electricity and gas utilities.
- The landlord will be responsible for water, sewer, and trash utilities.
- The average water, sewer, and trash utilities is $130 for each unit.
- The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.
Property Update (04/04/2023):
- The Property Manager had a vendor take a look at the basement again for waterproofing.
- The vendor recommends to replace the non-functioning sump pump before proceeding with additional repairs to seal the basement.
- The estimated cost to replace the sump pump is $1,025.85.
- Repair Invoice
- The Operating Reserve has been depleted. Owners voted to apply 50% of cash flow to replenish the reserve until it reaches 50% full ($4,375), and then apply 10% of cash flow until the reserve is 100% full ($8,750).
Property Update (02/27/2023):
- Front Unit: The tenant paid off their balance in full.
- Owners will receive rent back-pay from 2/18 (when daily rent stopped) until 2/26 and daily rent will begin again today for this unit.
Property Update (02/18/2023):
- Front Unit: The tenant made a partial payment of $221 and owes a balance of $675 for February.
- Daily rent for this unit will be stopped today and owners will receive rent back-pay once the tenant pays off their balance.
- Based on the initial governance survey for rent delinquencies, the majority vote is to offer a payment plan (subject to PM discretion).
- The PM recommends working with the tenant to collect February's rent.
- A 3-day notice cannot be posted if rent was collected in the last 30 days and eviction is not an option for February.
Property Update (01/31/2023):
- Front Unit: The tenant made a payment on 1/25 and owes $0 for January.
- Owners will receive rent back-pay from 12/19 (when daily rent stopped) until 1/30, and daily rent will increase starting today.
Property Update (12/19/2022):
- Front Unit: Tenant has a balance of $508 for December's rent and promised to pay this week
- Majority vote is to offer payment plan based on Property Manager's discretion
- Property Manager will work with tenant to pay off balance
- 3-day notice cannot be posted if rent was collected in last 30 days
- Daily rental income for unit will resume once tenant pays balance
Property Update (10/14/2022):
- Governance voting results show that Replacement Cost Coverage was chosen for landlord insurance
- Replacement Cost Coverage was voted on by 76.8% of total votes
- New insurance policy will go into effect on 10/31/2022
- Current insurance policy ends before the new policy takes effect
Property Update (07/20/2022):
- AC unit was stolen
- Replacement cost for AC unit is $3,766.25 and will be reimbursed through insurance claim
- 63% of token holders voted to follow Property Manager's recommendation for immediate repairs
- Deductible on insurance policy is $1,000 and will be deducted from maintenance reserve
Property Update (07/18/2022):
- Seller provided $9,000 credit at closing due to water intrusion in basement
- Property Manager addressing work order for tenants and getting proposals to waterproof basement
- Tenant in front unit submitted work order for AC unit not cooling
- Vendor wants to replace unit with new one for $3,766.25 and provide 10-year warranty on materials and labor
- Property Manager waiting for more information on age and repair/replacement options before making recommendation
Property Update (07/08/2022):
- Miscommunication error between Property Managers regarding leases for 333 Illinois Ave
- Front unit signed 1-year lease for $1,010/month on 5/22/2022, back unit on market for $990/month
- Owners will receive back-pay rent from 5/22/2022 at increased CoC return of 9.13%
- Full rent credit provided for back unit until it is fully leased at same rate due to miscommunication error
- Rear staircase collapsed while Property Management team was onsite taking photos, causing injury and damage to property
- Insurance claim filed to cover medical expenses and cost of repairing staircase, may include $1,000 deductible expense
