9510 Silk Ave
This property is an occupied single family home located in Cleveland.
The hot water tank is only 2 years old and the furnace is 5 years old. The roof has flashing and soffits in a few areas which need to be repaired. The seller is providing a credit of $700 for these repairs which will need to be performed in the Spring when there is warm weather. The exterior steps have been repaired and vines need to be removed (credit $200). Floor joists have been in place for many years with no movement. If necessary in the future, simple metal joist hangers can be added. Electrical items have been repaired as well as a sink drain plumbing leak.
Our A.I. does not have enough data for this property’s area to make an accurate forecast of the future appreciation. Because of this, we are not projecting that this property will rapidly appreciate. The projected appreciation of 10% is determined by taking the average of the HouseCanary 1 year appreciation forecast at the zip code level — as block level data is not available.
Tenant is on a 1 year lease until 8/31/2022 and is paying $850/month. Tenant is delinquent and an eviction has been filed.
Update 6/3/2022: The resident living at 9510 Silk Ave is 4 weeks behind on rent. The Property Manager has reached out multiple times via phone, text, and in-person, starting the first day after the missed payment, with no response from the resident. Based on the original governance survey, token holders elected to wait 4 weeks before taking action. Now that this time has passed, the PM is recommending offering the tenant Cash for Keys (paying them to vacate the property) and if they don't accept, moving to an eviction.
Update 6/6/2022: Token holders voted to offer the tenant cash for keys in order to vacate the property immediately.
Update 6/10/2022: We mistakenly reduced the CoC Return of this property (due to the tenant living in 9510 Silk Ave being delinquent on rent) without realizing there is a Vacancy Reserve in place. Your CoC Return has been reverted to its previous rate of 9.2% and you will be credited the additional rental income you should have received from June 3rd (when your CoC was reduced) until today. The rental income will come out of the Vacancy Reserve of $3,090 until the upper unit is leased out again. We appreciate your understanding.
Update 7/18/2022: The tenant has not responded to the Cash for Keys offer so the Property Manager will be moving forward with an eviction. The remaining Vacancy Reserve of $1,815 will continue to cover the rent of $850/month for this property for the next 2+ months. However, in order to proceed with the eviction, the PM needs a Lead Safe Certificate from the City of Cleveland. We have reached out to the PM for a copy. The current PM has also reached out to the city to obtain a current copy of the certificate. There may be a chance that a Lead Safe Certificate is not available for the property. The cost for an inspection and assessment is $750 and there may be additional costs for repairs identified by the inspector.
Update 8/16/2022: The Property Manager has received the Lead Safe Certificate and has already started the eviction filing. The PM is currently waiting on a court date. The Vacancy Reserve will fully cover rent for this property for the next month.
Update 9/19/2022: An eviction hearing has been scheduled for 10/7 at 9:00 am. Once the eviction hearing has taken place, you will receive an update from the Property Manager. The work has also been completed to address the city violations. The Property Manager has connected with the city inspector to schedule a re-inspection to cure the violations.
3178 W 41st St
This property is an occupied single family home located in an A.I. recommended neighborhood of Cleveland.
It was recently renovated after being purchased by the current seller in December 2021. The roof is in good condition and the loose flashing will be repaired immediately after closing. The following renovations have been completed: New flooring, new furnace (2021), new hot water heater (2021), bathrooms refreshed, new electrical outlets and lightings, small siding repairs, refreshed kitchen, drywall repair, and fresh paint.
Tenant is on a 1 year lease until 12/31/2022 and is paying $1,000/month. Tenant owes for August rent and is on a payment plan. They are also applying for rental assistance.
Update 6/9/2022: There is a flood in the basement of 3178 W 41st St which must be disinfected and cleaned immediately as it is contaminated with sewage. The basement must be completely disinfected including the equipment. Based on the original governance survey all token holders completed after their first token purchase, 63% of token holders voted to follow the Property Manager's recommendation for any immediate repairs. The total cost of this is $3,769.16. These funds will be taken from the maintenance reserve of $9,510 and the maintenance reserve will be replenished with 10% of the cash flow until it is full again.
Update 7/21/2022: The tenant owes July's rent and does not have a previous balance. The tenant promised to pay by end of month. Based on the recent governance survey for rent delinquencies, the winning vote for this property is to offer a payment plan, subject to the PM's discretion. This has been communicated to the PM and they will work with the tenant to bring their account current. The Vacancy Reserve will cover the missing rental income until the tenant has caught up on their payments.
Update 8/16/2022: The tenant has paid July's rent and currently owes $1,275 for August. The tenant promised to pay by the end of the month. Based on the governance vote on how to handle tenant delinquencies, the PM will be offering the tenant a payment plan. The PM is also assisting the tenant with applying for rental assistance. The Vacancy Reserve will fully cover rent for this property for the next month.
Update 9/23/2022: The tenant made a payment of $1,200 on 9/1. The balance owed is $2,476.70 and includes $800 for September rent, a late fee, and $1607.70 for water/sewer. Based on the governance survey for tenant delinquencies, the winning vote is to offer a payment plan (subject to PM discretion). The tenant has applied for rental assistance and the case is currently under review with the program. The Property Manager recommends to offer the tenant a payment plan in the interim as the program will pay for all rent arrears and 3 months of future rent at the time of the award. The Vacancy Reserve has been expended. Once the tenant has paid their balance off or is accepted for rental assistance, you will receive rent back-pay for this property as well as daily rental income moving forward.
Update 10/18/2022: The tenant made a payment of $1,200 this month and has carried the same balance since last month. The tenant applied for rental assistance last month and was approved for an award of $8,376.70 for July 2022 through January 2023. The award is expected to arrive before the end of November. Once the award arrives, you will receive rent back-pay for this property and your daily rental income will begin again. The Vacancy Reserve for this property will also be replenished.