This occupied, cash flowing property is a recently renovated 3 bedroom 1 bathroom single family home located in a trending neighborhood of Memphis, TN.
The roof, hot water tank and HVAC are all just two years old. This home is located less than a few miles away from parks, freeways, and trendy restaurants like Muggin Coffee House.
The resident is on a 1 year lease until 09/30/2022 and is paying $850/month.
Update 7/7/2022: This property has officially migrated over to the new Property Manager, HomeRiver Group, based on the results of the previous governance vote. HomeRiver Group charges a lower 7% Property Management fee compared to the previous Property Management fee of 10%. Because of this, you will see an increase in your Cash on Cash return starting today. This is reflected in the Assets Overview section of your Lofty account.
Update 7/28/2022: The tenant reported that a tree limb fell on the roof during a thunder storm on 7/24. The 24 foot Oak Tree limb will need to be removed by a crane to reduce further damages and to assess the damages on the roof. The total cost to remove the tree limb is $1,450 and the work has been approved by the PM to mitigate any further damages. These funds will be taken from the maintenance reserve. An insurance claim has been filed for the property. The adjuster will coordinate with the PM to visit the property after the tree limb has been removed by end of week, to write up an estimate for repairs.
Update 8/1/2022: The estimated roof repairs from the insurance claim is $6,068.36 and the payout from the insurance company will be $4,935.47 after deductible and depreciation. We are waiting on the PM to send us an estimate for repairs. The insurance payout of $4,935.47 will be applied towards the work and any additional cost above $4,935.47 will be deducted from the maintenance reserve. The insurance policy will also pay for the tree removal cost of $1,450.
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 Property Manager received an estimate from their vendor to repair the roof damages from the fallen tree branch for $2,800. The total insurance payout is $4,935.47. Because the insurance payout is more than the repair costs, an additional $2,135.47 will be added to the Maintenance Reserve. The vendor estimates that after the repairs are made, the roof will have another 10 years of useful life.
Update 10/5/2022: The tenant made a partial payment after the Property Manager sent a 5-day notice letter and currently owes a balance of $623. The tenant did not owe a balance before this. Based on the governance survey on how to handle tenant delinquencies, the majority vote is to offer a payment plan (subject to PM recommendation). Once the tenant has paid off their balance, you will receive rent back-pay for this property.
Update 10/18/2022: The tenant made a payment of $312 in September and a payment of $200 in October. The Property Manager has informed us that the tenant has vacated the property. We are currently waiting on more details.