Company Description
This property is a 5 unit Apartment Building located in Akron, Ohio.
All tenants are Section 8 and each apartment has 1 bedroom, 1 bathroom, and around 950 sqft.
Fresh paint, new carpets and new flooring for units 1, 3 and 5 in December 2021/January 2022.
The maintenance reserve has been increased to 6% to account for potential repairs due to Section 8 inspections.
Refer to the 'Documents' tab above to view the following information:
All LLC documents
Inspection report
Inspection report review
Purchase contract
Rent ledger
Rent roll
Our A.I. does not have enough data for this property 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 8.4% is determined by taking the average of HouseCanary's 3 year appreciation projection for the zip code.
Updates:
Update 7/9/2022: The Property Manager has found that unauthorized guests of the tenant in Unit 5 have been using the common area laundry facility, which is not allowed. The lease for this unit expired on 6/30/2022 and the PM will send a 60-day non-renewal notice to the Housing Authority due to the abuse of common area facilities. The Housing Voucher will still be paid while the tenant is looking for a new placement.
Update 7/18/2022: The non-renewal notice has been sent to the tenant in Unit 5 who was abusing the common area laundry facility. The lease will be terminating on 9/1 and the Housing Voucher will still be paid while the tenant is looking for a new placement. The Property Manager will complete move-out turn services after the tenant moves out on 9/1. The Vacancy Reserve of $5,290 will cover any missing rental income from the time the tenant moves out on 9/1 until a new tenant is found. The target rent will be at a minimum of $700/month, a $50 increase (7.7%) from the current rent.
Update 8/10/2022: The Section 8 tenant living in Unit 5 has already received a non-renewal notice and their lease will be terminating on 9/1. The Housing Voucher is paying the tenant's rent until the move out on 9/1. After the tenant moves out, the Vacancy Reserve will cover the rent for this unit in full. The Property Manager received word that the tenant in Unit 5 has been allowing his friends to stay in the basement of the property. Upon visiting the property, the PM found that the tenants' guests were living in the basement illegally. They have been using the water & washer/dryer, which explains the larger bills for the laundry facility as of late. The other tenants were frustrated by this issue as well. After the PM arrived, the tenants' guests vacated the basement and the Property Manager has boarded up & locked the basement door until further notice. The PM will be notifying the Housing Authority of this situation as well as the police if the tenants' guests return. Once the tenant moves out, the PM will look to rent this unit for a minimum of $700/month.This is a $50 increase (7.7%) from the current rent of $650/month.
Update 8/22/2022: The tenant in Unit 5 has started the process to vacate and has moving papers with the Housing Authority. The program they are using is short-staffed and it may take up to 60 days for the moving process to be completed. The tenant is also working with other organizations, like the VA, to speed up the process. The Housing Voucher is paying the tenant's rent until September 1st. After September 1st, the Vacancy Reserve will cover the rent for this unit in full until a new tenant moves in. This unit is currently under market rent. The Property Manager will look to increase the rent for the next lease.
Update 10/18/2022: Update 1: The Property Manager has completed the first round of repairs after the vandalism incident and restored water for the building. The repairs include installing new copper lines, removing all wet debris, disconnecting the washer/dryer, and re-securing the basement. The total cost of repairs is $2,773.79 which must be completed by 10/24 to avoid violations. These funds will be deducted from the Maintenance Reserve. The second portion of the repairs includes an environmental cleaning in the basement and installing a permanent dehumidifier to reduce organic growth in the basement. The total estimate for these repairs is $775. Update 2: The building has a 40-gallon hot water tank that services the entire building. The hot water tank was recently tagged by the gas company for missing a light cover place. The Property Manager recommends to replace the unit because they believe a 40-gallon tank is not sufficient to supply hot water for 5 units in the building. The estimate for a new 50-gallon tank is $1,450 and a new 60-gallon tank is $1,800. This property is in the process of being migrated to the new Property Manager, Northpoint Asset Management. We are currently waiting to hear back from them on their recommended plan of action for this issue. Update 3: The Property Manager received a violation notice for no water in the building. The water has since been restored, however the property received the additional violations during the inspection: The violations include: Provide screening for all doorways and windows opening directly from a dwelling unit to an outdoor space. Have exterior stairway put in good state of repair. Unit 5: Have existing plumbing fixtures and appurtenances put in good state of repair. Unit 5: Repair bedroom outlet. The PM is currently working on addressing these violations and all repairs are due by 10/21. The PM will send an invoice once all the repairs are completed. Update 4: Unit 2: The tenant has a Housing Voucher and their rent portion is $130/month. The tenant has not paid their portion for 3 months. The PM will start with posting a 3 day notice to get the tenant's attention and start paying. The PM recommends eviction if the tenant does not respond to the notice.
Update 10/20/2022: The governance voting results are back for the vote to determine whether to offer the tenant a payment plan, Cash for Keys, or to move forward with an eviction immediately. The winning vote is: Payment Plan (Property Manager's recommendation). This decision was voted on by 1,939 out of 2,179 tokens which is equal to 88.9% of the total votes. Eviction received 8.9% of the votes and Cash for Keys received 2.1%. The Property Manager has been notified of the LLC's decision and will be offering the tenant a payment plan, based on their discretion, right away.
