Company Description
This property is an occupied Fourplex located in Chicago, Illinois.
All units are occupied except for the 2nd floor unit. The seller is providing a full rent credit until the tenant moves in on May 1st.
The basement/garden unit and the 1st floor unit are both below market rent.
Refer to the 'Documents' tab above to view the following information:
Purchase Agreement
Inspection report
Inspection report repairs
Roof inspection
Certificate of Good Standing
Certificate of Formation
HouseCanary report
Roof inspection photos
The LLC documents will be uploaded to the 'Documents' tab once the property is fully funded and closed.
Updates:
Update 5/1/2022: The tenant has moved in to the 2nd floor unit as projected.
Update 6/18/2022: The tenants living on the first floor and basement of 1248 S Keeler Ave have signed extensions on their leases until January 2024, and are no longer month-to-month. We have also just been informed that this property is located outside the area that the Lofty Chicago Property Manager works in. They do not manage properties on the West Side of Chicago because of the higher tenant delinquency rates. Because of this, Hemlane, a highly recommended digital property management platform, will be providing Property Management services for this property (under the Complete pricing plan). The yearly PM fee for Hemlane is $1,536 compared to the typical 8% PM fee of $3,672. This increases the Cap Rate of this property from 7.4% to 7.9%.
Update 8/5/2022: It has come to our attention that Hemlane, the digital Property Management company managing this property, does not have the capacity to successfully manage this property. They assured us during the onboarding process that they did have the capacity, but we quickly realized they do not. Digital Property Management is appealing for a number of reasons including very low fees, but they are not yet up to the standard needed to successfully manage properties like this one. Hemlane does not have any on the ground reps to handle tasks such as key transfers, which has proved to be a large burden. There is also no guarantee that there would be agents or contractors that would be able to service the property, as these parties would all be outsourced. This property has already been onboarded with a new, highly recommended local Property Manager: Urban REI Management. The PM fee will remain the same as it was with Hemlane. The new PM has made contact with the tenants and completed an initial inspection. There a few minor repairs including a few broken windows and removing mildew from the basement. Additionally, the tenant on the 3rd floor reported a leak in their unit. The PM believes this may be from a clogged gutter. The PM is getting the estimate together for the repairs. They will use in-house labor for the work at $50/hour.
Update 10/5/2022: The Property Manager has identified that one of the leaks in the property is from the toilet on the 1st floor. The scope to repair the leak will require removing and replacing the toilet, tile, and backer board. The scope for the Basement Unit repairs requires the vendor to remove, replace, tape, and paint the damaged drywall from the leak. The ceramic tile and drywall work will require at least 2 days. The first day is to place material + dry and the second day is to finish grout for the tile and sanding walls/painting drywall. The estimated cost for this job is $3,200. These funds will be deducted from the Maintenance Reserve. The work is planned to be completed by the first week of November. The PM believes the actual expense will be less as they are using in-house labor. However, there may be additional costs if the PM finds rotted underlayment or broken pipes after they open the walls.
