Lofty 1339 E 115th St

Property originally listed for sale on the marketplace by David Sturgeon with Howard Hanna.

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Single Family Home located in Cleveland, Ohio.

Details

• Fully rehabbed in 2019 and recently refreshed. View recent renovations here
• Under contract for $125.8k and the HouseCanary Agile Valuation is $132,500
• The Closing Costs have been increased to account for repairs which will be made post-close. The seller is providing the DAO LLC with a $5,000 repair credit. View the Inspection Report Repairs document for more details.
• Colonial style house with front porch
• Interior includes living room, dining room, modern kitchen with newer appliances
• Three bedrooms and one bathroom on second floor, two bedrooms and one bathroom on third floor
• Backyard is completely fenced in
• Closely located to University Circle, Cleveland Clinic, and downtown

Property Management and Insurance

• Managed by Northpoint Asset Management
• Insurance Policy through Obie Insurance

Occupancy Status

• Vacant
• CMHA is offering a rent amount of $1,802, with CMHA paying $1,509 and the tenant paying $293.
• The PM has accepted CMHA's rent offer of $1,802.
• The compliance inspection has been scheduled for 8/18.

Location Data

• 1/5 Neighborhood Rating on Roofstock
• "B" Rating for Zip Code on Niche

Due Diligence Documents

• HouseCanary Agile Evaluation
• HouseCanary Property Valuation Report
• Inspection Report
• Inspection Report Repairs
• Renovations and Updates
• Purchase Agreement
• Operating Agreement
• View All Documents

Property Updates

• Property Update (08/21/2023):

  • Owners voted to change Property Managers from Northpoint Asset Management to HomeRiver Group Institutional Services.

• Property Update (08/12/2023):

  • The compliance inspection with CMHA was rescheduled for 8/18.
  • The PM has not been able to get the water company to turn the water service on for the property, which is required for the gas to be turned on as well for the inspection.
  • Additionally, the PM advised that there are several holes about 8 inches in diameter in the backyard from groundhogs.
  • The PM advised that CMHA may flag this as the holes could be a safety hazard.
  • The PM will work to get the water service turned on & get repair estimates to fix the holes.

• Property Update (07/22/2023):

  • The property had 25 leads, 12 prequalified, and 0 showings in the last 7 days.
  • CMHA advised that the requested rent of $2,150 is deemed unreasonable and unaffordable for the tenant.
  • CMHA is offering a rent amount of $1,802, with CMHA paying $1,509 and the tenant paying $293.
  • This is a $527 increase from the previously listed rent of $1,275.
  • The PM has accepted CMHA's rent offer of $1,802.
  • The compliance inspection has been scheduled for 7/27.
  • The PM anticipates for the property to have failed items from the inspection since the Inspection Report Repairs have not yet been completed.
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.
  • The PM is recommending to wait for the CMHA inspection on 7/27 and then complete the repairs, to prevent additional funds from being spent on repairs that are not required by CMHA.
  • After the inspection, the PM will have 14 days to complete the required repairs before another inspection takes place.

• Property Update (07/08/2023):

  • The property had 27 leads, 8 pre-qualified, and 0 showings in the last 7 days at $1,275/month.
  • The PM has confirmed 3 showings today for private-pay tenants.
  • The PM is waiting for CMHA to schedule the compliance inspection for the tenant wanting to move here from another Lofty property, 13806 Coit Rd.
  • The PM has reached out to the inspection provider for CMHA to help speed up the inspection process.
  • They advised that it can take up to 45 days to process the application.
  • Property Listing

• Property Update (06/24/2023):

  • CMHA confirmed that they are in receipt of the RFTA packet for the tenant wanting to move here from another Lofty property, 13806 Coit Rd.
  • They advised that it can take up to 45 days to process the application.
  • The PM is continuing to market the property to private pay tenants.
  • The property had 30 leads, 10 prequalified, and 0 showings in the last 7 days at $1,275/month.
  • The PM has scheduled additional showings throughout the week for the unit.
  • The PM is also getting several leads from the resource center.
  • Property Listing

• Property Update (06/17/2023):

  • The property had 28 leads, 3 prequalified, and 0 showings in the last 7 days.
  • The PM had an open rental showing and none of the confirmed showings attended.
  • The tenant at another Lofty property, 13806 Coit Rd, has submitted an application for this property.
  • The PM is currently reviewing the application and will work on completing the moving packer for the tenant.
  • The PM advised that they will request a rent of $2,100, the maximum payment standard with CMHA for a 5-bedroom home.
  • This is a $825 increase from the target rent for market tenants.
  • CMHA may counter the offer depending on the tenant's income and the voucher's maximum home size.
  • Property Listing

• Property Update (06/11/2023):

  • The property had 21 leads, 4 prequalified, and 0 showings in the last 7 days at $1,275.
  • The PM will offer a one-time concession of $200-$300 for an approved application with a move-in date in June.
  • The PM sent an email blast to all previous leads about the leasing special and is hosting an open rental showing this weekend.
  • The tenant from another Lofty property, 13806 Coit Rd, has also expressed interest and informed the PM that they intend to apply for the property.
  • The tenant will still have to pass the PM's same rental criteria requirements.
  • If the tenant applies and is approved, the PM advised that they will request $1,500 for rent with CMHA since the appliances will be provided on the property.
  • Property Listing
  • The PM is still waiting on a second vendor to provide a written estimate for the Inspection Report Repairs
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.

• Property Update (06/03/2023):

  • The property had 17 leads, 5 pre-qualified, and 2 showings in the last 7 days.
  • The showings were held on 5/31 and 6/1. The PM is following up with the prospects to secure an application.
  • The PM has reached out to local organizations like the Battered Women's Shelter to increase exposure for the property.
  • The tenant at another Lofty property, 13806 Coit Rd, informed the PM that they are interested in moving to this property.
  • View Property Listing
  • The PM is currently in the process of obtaining additional estimates for the necessary repairs.
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.
  • The PM recommends to delay the execution of these repairs in the event that a Section 8 tenant applies.
  • This strategy allows the repairs to be carried out in line with the compliance inspection requirements of the Section 8 program.

• Property Update (05/26/2023):

  • The Property Management company managing this property, Northpoint Asset Management, recently assigned a new Property Management team to all Lofty properties due to the delays in turning the properties and leasing up vacant units. All properties are now under institutional services, instead of retail services.
  • Institutional services includes a weekly and monthly financial reporting cadence, additional tools to streamline turn and repair processes, centralized SOPs with a local presence, additional local vendor contacts, and a specialized team in both Cleveland and Akron focused on leasing properties more efficiently.
  • The property had 12 leads, 2 prequalified, and 2 showings in the last 7 days.
  • The PM has not received an application and will lower the rent from $1,300 to $1,275.
  • View Property Listing
  • One of the vendors the PM reached out to gave a verbal quote of $4,400 to complete the repairs on the Inspection Report Repairs List.
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.
  • The PM is soliciting additional vendors to get their cost estimate for a comparative analysis.
  • The PM is also receiving a lot of interest from applicants with Section 8 vouchers.
  • The PM suggested that it might be more cost-efficient to postpone the completion of repairs listed in the Inspection Report Repairs list.
  • Instead, the repairs can be carried out after a Section 8 compliance inspection, but only if a Section 8 prospect applies for the property.

• Property Update (05/19/2023):

  • The listing had 35 leads, 1 prequalified, and 1 showing from 5/6 - 5/11.
  • The PM did not receive an application and lowered to rent to $1,300 on 5/11.
  • View Property Listing
  • The PM met with a vendor on 5/11 to get an estimate for the Inspection Report Repairs.
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.
  • The most costly repair from the report is the porch steps.
  • The vendor will provide two options to repair the steps: demo the current stair structure and rebuild brand new, or level steps and build wood steps over the concrete structure.
  • The vendor also noted that two walls in the basement that showed signs of water intrusion.
  • The PM advised that this does not have to be addressed now, but it will need to be repaired later on by sealing the walls or waterproofing.
  • Property Inspection Report
  • The listing had 2 leads and 2 showings in the last 7 days.
  • The PM has another showing scheduled on today and one next week after the repairs are completed on 5/22.
  • The PM recommends to hold the rent at $1,300 as it was recently reduced and they continue to get leads for the property.
  • The GC is still working on the estimates for turn repairs and the remainder of the items on the Inspection Report Repairs list.
  • The turn repairs needed for a move-in include replacing vent covers, cleaning the kitchen and bathrooms, cleaning up the backyard, fill in holes in the yard, and replacing broken screen doors.

• Property Update (05/06/2023):

  • The listing has had 37 leads, 1 pre-qualified and 2 showings at $1,350/month.
  • The PM is working on receiving applications from the 2 showings.
  • The PM has had a challenge with getting vendors to this property for repair estimates detailed in the Inspection Report Repairs document.
  • The seller provided a $5,000 repair credit at closing and the Closing Costs were also increased to cover additional repair costs.
  • The PM has one vendor scheduled for an estimate next week.
  • The PM recommends to wait for the repairs to be completed, and then gauging rental demand, before reducing the rent again.

• Property Update (04/26/2023):

  • The property has received 25 leads since reducing the rent to $1,350/month. 
  • The Property Manager is working on setting up showings with the prospects this week.

• Property Update (04/01/2023):

  • The property had 3 showings in the last 7 days.
  • The PM is following up with one of the prospects to submit an application.

• Property Update (03/28/2023):

  • The listing has received 17 leads/0 pre-qualified/4 showings since listing.
  • The property was initially listed at $1,550.
  • The target rent was lowered to $1,495 on 3/10 and to $1,350 on 3/21.
  • The two-month rent credit provided by the seller has now ended for this property. Owners will begin receiving daily rent again once a new lease begins.