S Rhodes – 2 Unit

Aug 11, 2011   //   by Shaun   //   Investment Opportunities  //  No Comments

Property Summary: Look down below at the numbers and comments to see why this is a killer opportunity. This is a multi-family property that will realize a very strong cash flow position.

The property is being sold under market value for $152,000 including the rehab. The rehab will be an upscale rehab with granite countertops, stainless steel appliances, upgraded bathrooms, hardwood floors, etc.

The After Repair Value (ARV) is $233,000.  In the figures below the market value is the value that will be attained once the property is fully rehabbed, not the value of its current condition.

This property is in an up and coming neighborhood and is located near schools, churches, public transportation, major highways, parks and convenient shopping.

EquityBuild is the company that handles all parts of the transaction and has done over 400 transactions in the past 6 years. The company provides the rehab, the property management and all necessary aspects of getting the property financed and refinanced resulting in a highly productive, cash flow producing investment property that you can enjoy long into the future.

S Rhodes Ave., Chicago, IL 60637

PROPOSED TERMS:

These numbers are for the first of year of operation.  All subsequent years should factor in maintenance and vacancy rates as well as increases in rents.

Property Type
2-unit
Purchase Price w/ Rehab 
$152,000 
Property Value After Rehab 
$233,000
Cost To Market Value
65.2%
Unit Configuration (#BR’s/#BA’s)
3/1 & 2/1
Projected Income (annually/monthly)
$28,800/$2,400
Taxes
$3,390
Builder’s Risk Insurance (estimated and used only during rehab)
$330
Common Area Management (lawn care, snow, utilities in hall, etc.)
$2,000
Property Management (10%)
$2,880
Cost of Bridge Loan (15% APR) 
$22,800
Cash Flow During Bridge Loan (annually/monthly) 
$0/$0 (rent guarantee brings this to zero)
Cost of Permanent Loan after Refinance
Estimated at 5% APR which is a bit high (annually/monthly)
$9,792/$816
Landlord Hazard Policy (estimated and after completion of rehab) 
$1,399
Cash Flow During Permanent Loan (annually/monthly)
$9,738/$812

EQUITYBUILD’S COMMENTS:

This will make a great start or addition to any portfolio with a substantial equity position, strong positive cash flow, minimum cash outlay and a tenant(s) buying this high performing asset for you.

The numbers listed above do not factor in maintenance or vacancy rates because they are not relavent during the bridge loan period since EquityBuild has guarantees that cover maintenance and rents.

The Rent Guarantee states that you will be compensated for any deficiency between the income and cost of the bridge loan once the rehab period has completed.  This will continue for the duration of the bridge loan or until the loan has refinance, whichever comes first.

The Maintenance Guarantee states that all maintenance will be guaranteed for 1 year following the completion of the rehab.

The Loss Guarantee states that value of the property is guaranteed to not drop below the cost of purchase and rehab.  If it does then any deficiency will be reimbursed.

Call Now!

First come, first serve.  

Don’t let this one slip away into someone else’s hands.

 

Comments are closed.