Company Description
This property is a fully renovated single family home located in a trending neighborhood of St. Louis. The following renovations have been completed: New laminate kitchen counters, repaired bathroom door, removed carpet, new luxury vinyl plank flooring, new vinyl blinds throughout, new smart locks, new smoke detectors, dry-locked basement walls, cleaned & serviced HVAC, updated plumbing, repaired sewer, new electrical, repaired cracks in exterior foundation, repaired damaged brick, landscaping, interior & exterior paint.
The tenant is on a 1 year lease from 8/1/2022 - 8/1/2023 and is paying $1,050/month.
The seller will be providing the LLC with $1,000 in order to sell the property faster. This will be added to the total annual gross rent for the next year.
Updates:
Update 11/17/2021: The cap rate has been increased from 6.9% to 7.1% moving forward. The property manager now charges a flat fee of $85/month instead of 10% of gross rents, which is the reason for the increase.
Update 11/19/2021: The cap rate has been increased from 7.1% to 7.4% for the next year. After 1 year, the cap rate changes from 6.4% to 6.7%, due to the rental credit incentive from the seller ending. This change kicks in immediately and you will see an increase on your next daily rental payment starting today. Reason for the increase: The seller has decided to reduce the asking price from $134,000 to $127,000 in order to sell the property faster. The seller has already agreed to push the closing date back until after the property is fully funded. This change in price will be reflected via a new contract added to the LLC documents for this property shortly.
Update 12/23/2021: We have been informed by the Property Manager that the tenant living at 5630 Morgan Ford Rd has moved out and canceled their lease after moving in on November 5th. The seller will be providing a rental credit to the LLC until a new tenant is found to make up for this quick cancellation. Because of this, the cap rate and your daily rental income will stay exactly the same. The property will also be marketed for rent at $1,050/month instead of the original rent of $1,100/month as advised by the PM. Due to the decrease in rent, the seller will be reducing the purchase price of the property from $127,000 to $120,000 so the cap rate stays the same as it is now––per their policy.
Update 6/4/2022: The current tenant has informed the Property Manager that they must break their lease early due to financial hardships. The tenant has already paid their full rent for June and has told the PM they will be vacating mid-month. There is a security deposit in place to handle turnover costs that may arise before the property is able to be marketed for rent again.
Update 7/7/2022: The tenant has moved out and left the home in good condition. This property is currently vacant. A new tenant has been found and is moving in on 8/1 for a 1 year lease at $1,050/month. The seller originally provided the LLC with $1,000 in order to sell the property faster which will be added onto the total annual gross rent until 11/2/2022. The tenant's security deposit of $1,050 will cover the total repairs of $730.47 in order for the property to be move-in ready. These funds will not be taken out of the maintenance reserve.
Update 8/1/2022: A new tenant has signed a 1 year lease at $1,050/month which starts today, 8/1. This is the same rental rate as the previous lease.
