Company Description
This 3-unit property was fully renovated to new back in 2018. It is in excellent condition and is located just a few blocks from the University of Akron.
All major items for the building are new including the roof, siding, windows, electrical, and hot water heater. All 3 units have separate locking entryways. Each unit has identical updated features which include 2 bedrooms in each unit (with private lock/key), 1 full bath, updated kitchen with a breakfast nook & cable ready living room. Each room has separate thermostat. Each unit has key access to rear entry laundry room (requires stackable w/d unit). New electrical with 4 meter boxes, added exterior entry laundry room; 4 new exterior doors; new concrete stairs to laundry, new concrete driveway, new siding, new gutters/downspouts (tied into street), new replacement windows, landscaping, new/upgraded electrical inside, all wiring to code including GFI’s in kitchen/baths, new electric baseboard heaters for all units with thermostats in each room, all new light fixtures, new PEX plumbing. There’s also new cabinets, countertops, sinks, faucets, tubs, toilets and vanities. Lower unit has new drywall throughout. All units primed and painted. Tenants pay their own electric and each unit has electric baseboard heat (which is virtually maintenance free).
Unit 1: Tenant has been given 90 days by judge to pay their missing rental income. Lofty is providing rental credit.
Unit 2: The tenant is on a 1 year lease until November 1st, 2022. Their lease automatically renews for an additional 1 year period unless the Tenant or Landlord gives a 60 day notice to cancel the lease. This tenant has lived in the property since October 17, 2021.
Unit 3: The tenant is on a 1 year lease until January 13th, 2022. Their lease automatically renews for an additional 1 year period unless the Tenant or Landlord gives a 60 day notice to cancel the lease. This tenant has lived in the property since January 2020.
The seller is providing the LLC with a rental credit of $267/month until the rents are increased to market rent ($2,550/month), in order to sell the property faster.
Property management fees will be increased from $2739.60 to $3,060/year once the monthly rent is increased to $2550/month. This will drop the cap rate from 8.8% to 8.6%.
Our A.I. does not have enough data for this property’s area to make an accurate forecast of the future appreciation. Because of this, we are not projecting that this property will rapidly appreciate. The projected appreciation of 11% is determined by taking the average of the HouseCanary 3 year appreciation forecast at the zip code level — as block level data is not available.
This property comes with a 1 year home warranty.
Updates:
Update 3/17/2022: The Property Manager has informed us that the insurance underwriter for this property recently realized that there was no handrail leading down into the basement unit. This is required for the liability insurance. Based on the original governance survey all investors completed after their first token purchase, 63% of token holders voted to follow the Property Manager's recommendation for any immediate repairs. The work has been approved and completed. The cost of the new handrail is $425 which has been taken out of the maintenance reserve. Invoice and picture of new handrail attached.
Update 5/24/2022: 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, the Annual Cash Flow of this property has increased from $21,378 to $21,670.
Update 7/11/2022: There has been a miscommunication error between the previous Property Manager and the new Property Manager regarding theThis tenant was delinquent on their rent & the previous PM decided to move forward with an eviction without consulting token holders. Because of this lapse in communication, Lofty will be providing a rental credit for any missed rental income while this tenant is still living in the unit because of this issue. There was an eviction hearing and the judge ruled to give the tenant 90 days to resolve their issue. The tenant recently applied for rental assistance and was approved, and they've also just got a full time job and will be discussing a plan with the PM to get completely caught up. At this time, a new court date has not been set. The attorney will forward the new hearing date once received and the tenant will still be responsible for rent over the next 90 days.
