Company Description
This single family home was fully renovated earlier this month (May, 2022) and is located in Memphis, Tennessee. It was built in 1959.
This property is currently on the market for rent at $950/month. Lofty is providing a full rental credit until a lease begins.
Pictures of the home during the renovation can be seen starting on picture 18.
Refer to the 'Documents' tab above to view the following information plus more:
Purchase Agreement
HouseCanary Agile Evaluation
Inspection report
Inspection report repairs
Renovations & updates
Property description & rent roll
Sales price history
Updates:
Update 7/29/2022: The new Property Manager, HomeRiver Group, will be marketing this property for rent at $950/month. This is a $65 increase (7.3%) over the previous projected rent of $885 and increases the Cash on Cash return from 8% to 8.8%. This property was vacant at launch & the seller was providing a rental credit at $885/month. This rental credit has since expired, and Lofty will now be providing a rental credit at the PM's projected rent of $950/month until a new lease is signed. The delay in finding a tenant is due to this property getting caught between the transfer process from the previous Property Manager, Crestcore, and the new Property Manager, HomeRiver Group. This property is being managed by HomeRiver Group now and they expect to find a tenant at $950/month shortly. Section 8 tenants will also be considered.
Update 8/12/2022: The governance voting results are back for the vote on whether to supply all of the appliances for ~$1,950, just the dishwasher for ~$500, or no appliances at all. The winning vote is: Supply a refrigerator, electric stove, and dishwasher for ~$1,950. Property Manager estimates an additional rental yield of $50-100/month. This decision was voted on by 970 tokens out of 1,458 tokens which is equal to 66.6% of the total votes. 2nd place: Supply only a dishwasher - 375/1,458 tokens (25.7%) 3rd place: Do not supply appliances - 113/1,458 tokens (7.7%) The Property Manager will be supplying the property with the appliances and will look to increase rents by $50-$100. The funds for the appliances will be deducted from the Maintenance Reserve of $5,000.
Update 8/18/2022: The Property Management fees have been reduced to 5.7% due to a new National Partnership Agreement between Lofty and the Property Manager, HomeRiver Group.
Update 8/19/2022: The new target rent for this property is $1,025. This is a $75 increase over the previous target rent. This increases the Cash on Cash return to 9.8%. You are currently receiving daily rental income for this property via a rental credit until a new lease begins. The cost to install the refrigerator, stove, and dishwasher will be $1,876.75. This is below the projected cost of $1,950 mentioned in the previous governance vote. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again.
