Company Description
This occupied Duplex was fully renovated to new back in 2018 and is located in an A.I. recommended, west side Cleveland neighborhood. West Blvd is a scenic street with large front yards, large porches and a mix of both rentals and owner occupants.
This property is close to the highway, downtown, restaurants/bars, and the lake. Both units fully renovated in 2018. New kitchens and baths in both units. Roof is not new, but has at least 5 years of useful life and is fully functional. Windows are newer vinyl windows, all replaced between 2015 - 2018. Mechanical, electrical, plumbing are all modern and in good working order.
Unit 1 started a 1 year lease on 11/06/2021 and is paying $1,050/month. This tenant is currently delinquent. See the update below for more information.
Unit 2 started a 1 year lease on 12/01/2021 and is paying $1,200/month.
Tenant and Landlord agree that both parties may agree to renew the Lease for a period of one year upon the same terms and conditions set forth in the Lease, subject to Landlord’s option to increase the rent for any renewal term, upon one party giving written notification of such intent to renew at least thirty (30) days prior to the termination of this Lease, and the other party agreeing to renew the Lease within ten (10) days of said notification. Notwithstanding the above, both parties agree that this Rental Agreement shall automatically convert into a month to month tenancy if both parties fail to give notice to either renew or terminate this Rental Agreement. For Unit 1, There will be an additional month-to-month fee of $75.00 per month in addition to the regular rent.
The seller is providing the LLC with a credit of $1,450 to fix the issues mentioned in the inspection report. These issues will be fixed immediately upon closing. To view a breakdown of the different issues and costs associated, see “Inspection report repairs to be completed” in the property document link below.
This property comes with a 1 year home warranty.
Updates:
Update 6/9/2022: This property has officially migrated over to the new Property Manager, B2B Realty, based on the results of the prior governance vote. Because B2B Realty charges an 8% Property Management fee instead of the previous 10% fee, the Annual Cash Flow of this property has increased from $18,441 to $18,951.
Update 7/22/2022: The tenant in Unit 1 owes for the current month and has a past due balance that is more than 1 month's rent. Based on the recent governance survey on how to handle delinquent tenants, the Property Manager will be filing an eviction. The tenant has also applied for rental assistance and the PM is allowing the tenant time to get it processed. However, rental assistance is not guaranteed and the PM will issue a 3-day notice to start the eviction process if they do not hear back from the rental assistance program.
Update 8/16/2022: The tenant currently owes a balance of $2,050 for July and August rent. The tenant informed the PM that they plan to pay the balance soon and will follow up with the PM by the end of this week. Per the last update, the Property Manager was waiting to see if the tenant is approved for rental assistance before moving forward with an eviction. The PM now believes the chances of rental assistance approval are slim for this case, because the program would have completed the lease verification by now. The PM is recommending offering the tenant cash for keys first to speed up the process if they do not pay by the end of this week, and then starting an eviction if the tenant does not accept. The cash for keys offer will be tiered with 1 month's rent to move out in 7 days ($1,050) and half month's rent to move out in 14 days ($525). We informed the PM that eviction is the route that token holders want to take for this situation per the recent governance survey on tenant delinquencies. Because the PM's recommendation differs from that of token holders, there will be a governance vote to determine the final decision. The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in Lofty Holding 3139 West Boulevard LLC on Thursday, August 18th once the voting period ends.
Update 8/18/2022: The governance voting results are back for the vote on whether to offer the tenant in Unit 1 cash for keys or to evict them next week if they do not make a payment. The winning vote is: Cash for Keys - 1 month's rent to move out in 7 days ($1,050) and half month's rent to move out in 14 days ($525) - Property Manager's recommendation. This decision was voted on by 1,524 tokens out of 2,257 tokens which is equal to 67.5% of the total votes. If the tenant does not pay by the end of this week, the Property Manager will be offering them Cash for Keys on Monday of next week.
Update 8/26/2022: The Property Manager offered the delinquent tenant Cash for Keys, but they rejected it because they want to stay in the property. The tenant agreed to a payment plan. Their current balance is $2,050. The tenant will make a payment of $1,100 on 9/2 and $1,000 on 9/16 (includes late fees). Once these payments are received, you will receive full rent-back pay starting on 7/22. The tenant will also pay $1,000 on 9/30 for September's rent and $1,075 on 10/14 for October's rent. The tenant should be able to make timely monthly payments starting in November. Eviction will be filed immediately if the tenant misses a payment. The tenant has also applied for rental assistance and if approved, they may be awarded payment for rent arrears and 3 months of forward rent as well.
Update 9/21/2022: The tenant did not make their first payment of $1,100 per the payment plan on 9/16. The Property Manager recommends eviction as they have exhausted Cash for Keys and a Payment Plan with the tenant. The PM posted a 3-day notice on the door to start the eviction process. Eviction will be filed with the courts if rent is not paid in full this week.
Update 10/18/2022: Unit 1: The Property Manager filed eviction for this tenant last month. The tenant has applied for rental assistance and the PM has completed the landlord verification request from the program. While rental assistance is not guaranteed, the tenant currently being under eviction may expedite the rental assistance approval process.
