Company Description
This fully occupied Duplex has 6 bedrooms, 2 bathrooms, and is located in a trending neighborhood of Cleveland right by the water.
The back unit has an attached one car garage with 4 bedrooms and 1 full bathroom with a separate living room and dining room. The front unit has 2 bedrooms and 1 full bathroom with a large living room and dining room.
Front unit - Tenant on a 1 year lease from 05/22/2022 - 04/30/2023 paying $1,010/month.
Back unit - On market for rent at $990/month. Lofty providing full rental credit until property is fully leased.
The basement walls will need to be waterproofed within the next few years to prevent water damage. We received a quote from contractors for $8,500 to complete this job. The seller has provided a $9,000 credit for this repair which will take place once the property is vacant. This credit is separate from the $8,750 maintenance reserve for this property.
Updates:
Update 7/8/2022: There has been a miscommunication error between the previous Property Manager and the new Property Manager regarding the leases for 333 Illinois Ave. Lease updates: The front unit signed a 1 year lease on 5/22/2022 for $1,010/month and the back unit is currently on the market for $990/month. Because of this miscommunication error, you will be receiving back-pay rent from 5/22/2022 until today at the increased CoC return of 9.13%. Lofty will also be providing a full rent credit for the back unit until it is fully leased at this same rate because of this issue. On another note, the Property Management team was onsite at this property to take photos of the back unit and the rear staircase collapsed under one of the photographers. The photographer is not severely injured, but a claim has been filed on the insurance policy, which will cover medical expenses for the employee as well as the cost of repairing the rear staircase. There may be a $1,000 deductible expense.
Update 7/18/2022: Update 1: The seller initially provided an $9,000 credit (separate from maintenance reserve) at closing because the basement showed signs of water intrusion during the original inspection. The Property Manager was onsite addressing a work order for the tenants and informed them that the basement waterproofing should be done now as a preventative measure. The tenants were pleased with the response and appreciated the foresight to take care of their home. The PM has started working on getting proposals from vendors to waterproof the basement. Update 2: The tenant in the front unit submitted a work order because the AC unit was not cooling. The PM dispatched a vendor who wants to replace the unit with a 2.5 ton 410A Puron System for $3,766.25. The work would come with a 10-year warranty on materials and labor. Before the PM recommends this repair, they are waiting on more information on the age of the unit and why it needs to be replaced instead of just repaired.
Update 7/20/2022: The Property Manager has informed us that the AC unit for 333 Illinois Ave was stolen. The vendor checked on the outside unit and found out that the condensing unit was missing. The total replacement cost for the AC unit is $3,766.25. This will qualify for reimbursement through an insurance claim. 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 deductible on the policy is $1,000 and will be deducted from the maintenance reserve.
Update 10/14/2022: The governance voting results are back for the vote on whether to renew landlord insurance with Actual Cash Value coverage or Replacement Cost coverage. The winning vote is: Replacement Cost Coverage. This decision was voted on by 932 out of 1,210 tokens which is equal to 76.8% of the total votes. This new insurance policy will go into effect on 10/31/2022, once the current insurance policy ends.
