Company Description
This property is a fully-occupied brick Quadplex located in an A.I. recommended, conveniently located neighborhood of Saint Louis situated close to several parks.
Each apartment is a 1-bedroom / 1-bathroom unit with a private entrance, decorative fireplace, spacious living room, and newly installed windows throughout the building.
3435 1F: Lease expired. The PM will present a renewal offer of $675, a $25 increase from the current lease.
3435 2F: Rented at $695. Lease Term 10/1/22 - 10/1/23. This is a 15.8% rent increase ($95) over the previous rent of $600.
3437 1F: Rented at $650; Lease term: 03/01/22 - 03/01/23
3437 2F: Rented at $600: Lease term: 01/31/22 - 1/31/23. The tenant has been approved for rental assistance. The program will cover all of the back-rent as well as three months of rent moving forward (Aug, Sept, Oct).
A parking area is available on the rear side of the building.
Items from the inspection report to note that will be repaired:
Sewer repair completed by close and paid for by the seller ($7,984)
Seller provides an additional $2,000 to repair chimney tops, reset loose bricks, replace mortar joints in the foundation stone, and spot tuckpointing around the building. Invoice attached and job to completed post-closing
Sellers will provide $2,000 for repairing window screens where needed, door latch, new door lock, replace the damaged door, new guard rail, replace smoke detectors and doorknobs.
Link to drone video
Updates:
Update 2/15/2022: Token holders voted to offer the tenant living in 3435 2F a 2 year lease term.
Update 3/2/2022: The rents for Unit 3435 - 2F and Unit 3437 - 1F at 3435-3437 Alberta St have both been increased from $600/month to $650/month. This increases the Cap Rate from 7.8% to 8.2%, which will be reflected in your daily rental income starting today. The tenant living in Unit 3437 - 1F, who originally wanted a 2 year lease which was approved per the last governance vote, recently told the property manager that they just received a large salary increase and will be looking to buy a house in a year––so they're no longer wanting a 2 year lease term. The tenant living in Unit 3435 - 2F is still on a month-to-month lease, but has indicated that she would like to start a 1 year lease on April 1st. Once we receive an update on this new lease, you will be notified right away.
Update 4/6/2022: The Property Manager is recommending to repair a roof leak at 3435-3437 Alberta St in order to prevent additional damage. This repair costs $665. Based on the original governance survey all investors completed after their first token purchase, 63% of token holders voted to follow the Property Manager's recommendation for any immediate repairs. This will be taken care of immediately and the funds will be deducted from the property's maintenance reserve.
Update 5/26/2022: The Property Manager has recommended making a number of repairs in three of the Units for a total cost of $2,000. 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. These repairs will be taken care of right away and the funds will be deducted from the maintenance reserve of $12,100.
Update 7/14/2022: The tenant living in Unit 3435 2F of 3435-3437 Alberta St has moved out and the unit is now vacant. The Property Manager has already performed a move-out inspection and is estimating around $5,000 in repairs. Once an estimate from a vendor is received, you will receive an update. While onsite, the PM saw deterioration on the balcony structure and had a structural engineer examine further. The PM confirmed the balcony does not need to be rebuilt. They are working on getting a proposal for adding connectors to reinforce the balcony as well as a proposal to install a balconette in lieu of a balcony. The PM will call the city to check on the code requirements and see if a balconette is a viable option.
Update 7/22/2022: 3435 Unit 2F Turn: The Property Manager has received the estimate from vendors to complete the unit turn. The turn service work requires full paint, sheetrock for water damage from previous roof leaks, replacing the damaged mini blinds & installing missing binds, replacing a low hanging ceiling fan fixture, and replacing light fixtures that don't turn on. The total cost of repairs is $4,560 which will be taken from the maintenance reserve. The PM originally proposed to refinish the floors for $1,800, however they advised that the unit could still be marketed without refinishing the floors as they are still in good condition, and refinishing the floors would not yield a higher rent return. The target rent for this unit is $675/month, a $75 increase (12.5%) from the previous lease. 3435 Unit 2F Balcony Repair: The PM was able to meet with a vendor to get a proposal for the balcony replacement, which is $6,000. The PM does not believe a full balcony replacement is necessary. They are currently waiting on a proposal to install a balconette in lieu of a balcony which should be significantly less expensive. The proposal should be ready by Monday. The PM does not believe there will be any difference in rental income if a balconette is installed instead of the balcony being replaced. Both doors with balconies will be double locked in the meantime due to the structural concerns. 3435 Unit 1F: The other tenants in the building have been having issues with this tenant not picking up after their pet and leaving trash in the common areas. The Property Manager has sent out fines and will issue a lease violation for non-compliance. The tenants lease expired on 7/19. If the tenant does not cure their lease violations, then the PM will move forward with a lease non-renewal. If the tenant complies, then the PM will present a renewal offer of $675, a $25 increase from the current lease. 3437 Unit 2F: The tenant made a partial payment of $350 this month and owes a past due balance that is more than 1 month's rent. The tenant had received rental assistance before and is applying again. However, the application is under review and the PM has not yet received an update on the approval status. Based on the recent governance survey on how to handle rent delinquencies, the Property Manager will be offering the tenant cash for keys equal to 50% of the monthly rent ($300) in order to vacate immediately. If the tenant declines, the PM will offer cash for keys equal to 100% of the monthly rent ($600). The PM will give the tenant a week to sort out the rental assistance and if that falls through, they will proceed with the cash for keys offer. If the tenant vacates, the PM will look to increase the rent for this Unit for the next lease.
Update 8/5/2022: 3435 Alberta St Unit 1F: The tenant has agreed to roll into Month-to-Month status at $675, a $25 increase from the current rent. The Property Manager does not recommend pushing to renew this tenant as the neighbors are having issues with them not picking up their trash on the common grounds as well as not picking up after their pet. 3435 Alberta St Unit 2F and 3437 Alberta St Unit 2F: The PM was able to coordinate visits with three different vendors regarding the balcony repair issue mentioned in previous updates. One vendor estimated around $800 to tear down the existing wood balconies. The PM will have three estimates for a balconet install next week.
Update 8/15/2022: The Property Manager has confirmed with the rental assistance program that the tenant has been approved. The program will cover all of the back-rent as well as three months of rent moving forward.
Update 8/16/2022: The turn service was behind for a few weeks due to the vendor's team being out with COVID. The vendor confirmed that the work has been completed and the Property Manager will complete a quality inspection for the unit. The occupancy inspection with the city is scheduled for 8/18. The target rent for this unit is $675/month, a $75 increase (12.5%) from the previous lease.
Update 9/8/2022: A new tenant has been approved with a move-in date of 10/1. The tenant will sign a 12 month lease at $695. This is a 15.8% rent increase ($95) over the previous rent of $600. The tenant has two cats and paid a refundable pet deposit of $300. The property did not pass the required Occupancy Inspection and the violations total $850. These funds will be deducted from the Maintenance Reserve. The Property Manager is waiting on clarification on the hatch cover violation as the basement door is a regular door, not a hatch door.
Update 9/28/2022: Update 1: The Property Manager has received two estimates to remove the wood balcony structure and install a balconette: Little Man's Contracting: $3,900. T&R Construction: $2,800. Once the PM receives both proposals, you will receive an update on which proposal they recommend. Update 2: The tenant in Unit 3437-2F reported roaches and requested for a pest control service. The PM recommends to treat all units when one unit reports a pest control issue. The cost to treat the interior and exterior of all units is $380. These funds will be deducted from the Maintenance Reserve.
Update 10/1/2022: The tenant's lease renewal begins today at $695/month. This is a 15.8% rent increase ($95) over the previous rent of $600. The tenant has two cats and paid a refundable pet deposit of $300.
Update 10/20/2022: The Property Manager discussed the scope of work to replace the balconet with the vendors and the vendors recommended to install a screen door instead of a balconet. The PM recommends the screen door as well because it would be a more aesthetic curb appeal for the property. The estimate to remove the decking structure and install a new screen door is $2,500. The vendor will most likely have to rent a lift to safely remove the deck/balcony structure. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. These repairs are expected to be completed by Friday, 10/28.
