Company Description
This occupied single family home was fully renovated in 2021 and is located a few blocks from the Norwood Hills Country Club in St. Louis, Missouri.
The following renovations were completed in 2021:
Remodeled kitchen with granite countertops, undermount sink, and custom backsplash
New vinyl plank flooring
Remodeled bathrooms
Partially finished basement
Fresh paint
The tenant is on a 1 year lease which started on 11/01/2021 and is paying $1,095/month.
The LLC is charging the tenant $95/month for utilities (water & sewer) which cost $77/month. This generates $18/month in additional profit for the LLC (or $216/year) which is added onto the Annual cash flow in the "Financials" tab above.
Updates:
Update 7/26/2022: The tenant reported that the basement has flooded due to the heavy rain in the area. The Property Manager advised the tenant that they cannot do much at the moment as the roads are not clear for contractors to make it out to the property. Additionally, the forecast calls for more rain through Thursday and extracting the water now would be a waste of resources. The PM has requested the tenant send photos of the basement to get an idea of how much water has infiltrated the finished basement.
Update 8/4/2022: The Property Manager obtained photos of the home and advised that there are not any visible damages due to the basement flooding last week. The PM provided the tenant with reusable instant dams/water socks to put around the perimeter of the basement interior. This will create a small barrier and can soak up 1-2 gallons of water. The PM is scheduling a date with the tenant for the technicians and the foundation vendor to visit the property and take down the 1/2 paneling to identify water damages and the source of water infiltration in the basement. The PM believes water is coming in at two points of the house. There is an area along the back side of the house where there is an indentation in the cement that is a few inches deep, and another area that is below grade. The indentation in the cement can be filled to be a bit higher than the platform to divert water away from the structure. The PM will send over estimates for repairs once the foundation vendor has assessed the property.
Update 9/9/2022: The Property Manager reached out to three vendors and received a proposal from one vendor for basement repairs caused by the floods in St. Louis last month. The other vendors have been swamped with work due to the recent flooding in the area and have not been able to respond to the requests for proposal. The basement has been drawing in water due to hydrostatic pressure. The vendor proposes to install a sub slab drainage system to direct water outside. The repairs include: Install a high flow interior sub slab drainage system, Install sub slab weep holes to direct water into the drain system, Install an exterior drainage system, Install dedicated circuit for sump pump (completed by PM in-house labor) for $500. The total cost for the waterproofing system is $3,808. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the property's cash flow until it is full again. The PM also confirmed that there is no sprinkler system or piping in the yard to worry about restoring after the exterior drainage system is installed, and the utilities company will mark the utilities for the vendors. The tenant submitted an AC work order on 8/12 and the vendor replaced the capacitor. Unfortunately, the tenant submitted a request for the AC again on 8/15. The vendor found that the unit was tripping the breaker and they installed a hard start kit to resolve the issue. The cost for the both visits was $773. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the property's cash flow until it is full again.
Update 10/13/2022: The Property Manager advised that there will be additional interior repairs that are not covered by the vendor for the waterproofing work. The PM's in-house team will remove the bathroom floor, vanity, toilet and paneling to accommodate the waterproofing repairs and will reinstall them after the work is completed. The estimated costs for removal and reinstall is $700. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again.
Update 10/21/2022: The tenant has an outstanding balance of $1,780 and owes rent for October and partial rent for September. Based on the governance survey on how to handle tenant delinquencies, the winning vote is to offer the tenant a payment plan. The Property Manager also recommends a payment plan, and will be working with the tenant to get them current. The PM will also be filing an eviction in order to increase the likelihood of the tenant being approved for rental assistance, which they recently applied for. If the tenant gets caught up on the payment plan, the eviction will be cancelled. You will continue receiving daily rental income out of the Vacancy Reserve until the end of this month.
