Company Description
This single family home was fully renovated in 2019. The renovation included a brand new roof, new security doors, new exterior doors, new interior and exterior paint, new bathroom, new kitchen, new tile flooring in the kitchen, laminate floor installed in the bedroom, and interior doors replaced.
The projected Cash on Cash return is based on HouseCanary's estimated rental value of $965/month.
Updates:
Update 3/31/2022: Token holders voted to offer the tenant cash for keys to vacate the property immediately.
Update 4/19/2022: The Property Manager has been unable to reach the resident via text, call, email, or in-person to offer Cash for Keys. Therefore, the PM will be moving forward with an eviction immediately. Evictions typically take 2-3 months to complete.
Update 5/6/2022: The resident has vacated the property on their own accord. Because of this, the 2-3 month eviction process has been cancelled. The cost of rekeying the property is $150 which will come out of the Maintenance Reserve. The Property Manager will be walking the property and assessing the unit for any repairs that need to be made in order for the property to be listed for rent again.
Update 6/6/2022: The Property Manager has informed us that there are $3,906.84 worth of repairs that must be made in order for this property to be rented again. This property currently has a Maintenance Reserve of only 2.8%, which totals $2,955 in funds. This property should have started with a 5% maintenance reserve which would total $4,925 in funds. Because of this oversight, Lofty will be providing a credit to the LLC for the additional repair funds. The maintenance reserve will have $1,019 in funds remaining after these repairs are made ($4,935 - $3,906.84). The maintenance reserve will be replenished using 10% of the cash flow until it is full again once the property is leased out again.
Update 7/18/2022: The voting results are back for the governance vote on which insurance policy investors prefer for 4661 Berta Rd. The winning vote is: Arcana Insurance (Replacement Cost coverage). This new insurance policy will go into effect immediately.
Update 7/22/2022: This property has officially migrated over to the new Property Manager, HomeRiver Group, based on the results of the prior governance vote. Once the repairs are finished and the property is leased again, there will be a lower Property Management fee of 7%.
Update 7/26/2022: The Property Manager has confirmed that the repairs will be completed tomorrow, 7/27. Once the repairs are completed, the PM will walk the property to ensure it is ready to be marketed for rent. The PM will be targeting a rental rate of $1,050/month. This is a 32% increase ($258) over the previous rent of $792.
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 10/12/2022: This property has had a total of 5 leads since listing and 1 new lead in the past 7 days. None of the leads were pre-qualified and the property had 0 showings. The Property Manager re-ran the comps in the area and recommends lowering the rent from $1,050 to $1,025 due to the slower leasing season. This property was listed for $1,225 by HomeRiver Group once they took over management on 8/4, and they lowered the rent to $1,125 on 9/18.
