Lofty 724 3rd Ave

Fully Occupied Triplex Located in Watervliet, New York

Offering Details

• The property owner and Property Manager, Earl Co is selling a portion of his property's equity on the Lofty marketplace.
• This property has a loan balance of $70,700. View the loan agreement and recent statement here.
• The Rental Yield is based on the equity value of $163,150 (Total Investment Value minus Debt). As Earl pays down the debt payments himself in full, his equity percentage in the property will increase and the equity percentage of investors on Lofty will decrease proportionally.

Property Details

• Brick 3 family property in historic Port Schuyler area with each unit boasting historic detail and ornamental fireplaces.
• The basement has a side entrance, a brick-paved patio, one bedroom with a den alcove, and a gated wooden fence for added privacy.
• On the 2nd and 3rd floors, tenants enjoy decks that overlook the historic Erie Canal site, now transformed into a vibrant community park.
• The 3rd floor is equipped with separate utilities and a small second bedroom, adding convenience and flexibility.
• Conveniently located close to highways, the charming Schuyler Bakery, and the renowned Valenti's, residents can enjoy easy access to amenities.
• Earl advised that tenants consistently pay rent on time ensuring a steady income stream for the property. He also provided the following information below:
• There is massive demand for sub-$1000 apartments in this area. The middle unit has housed the same tenant since approximately 2011 and is currently rented well below market rates, but necessitates substantial renovation. Due to a commitment to not displace tenants for the sake of gentrification, there are no immediate plans to relocate the tenant or renovate his unit which would then require raising his rent to match market rates. Moreover, for tenant's personal preferences, he will likely remain a renter in this building indefinitely.
• Should the opportunity to renovate Floor 1 arise, a governance vote may be proposed for a capital call to renovate this unit and bring its rent up to market levels, which is currently around $960.
• Annual rent increases of approximately 2-4% are implemented in the tenants' leases, to maintain fairness and keep pace with inflation while gradually approaching market rates. The intention is not to drastically raise rents but to account for rising costs of utilities, insurance, maintenance, and repairs, while ensuring that the property remains appropriately valued.
• Earl will provide a credit to pay for 100% of the repair costs of any "Major Defect and/or Safety Hazards" mentioned in the Inspection Report. This includes the roof, HVAC, foundation issues, and more. See the Inspection Report Repairs document for more details.
• View the Year-to-date Profit & Loss Statement here.

Property Management and Insurance

• Managed by the seller, Earl Co
• Insurance Policy from State Farm

Occupancy Status

• Unit 1:
  • 1 year lease (02/01/2024 - 01/31/2025)
  • $680/month
  • $650 Security Deposit
  • Same tenant was previously on a month-to-month lease starting on 10/01/2020
  • Lease Agreement
• Unit 2:
  • Month-to-month lease starting on 07/01/2023
  • $850/month
  • $800 Security Deposit
  • Same tenant was previously on a 1 year lease from 06/21/2022 - 06/30/2023
  • Lease Agreement
• Unit 3:
  • Month-to-month lease starting on 11/01/2021
  • $845/month
  • $830 Security Deposit
  • Lease Agreement

Location Data

• "B" Rating for Zip Code on Niche

Due Diligence Documents

• Appraisal
• Inspection Report Repairs
• Inspection Report
• Operating Agreement
• View All Documents