Investment Proposal
1780 Barrett Ave.
investment Strategy
This 10 unit building is in a prime location and has great potential for increased value. Our investment strategy is very close to the strategy we currently implement on many of our single family properties. By renovating and improving the units, we can charge a more standard rental rate for the area. From our analysis, comparable units in the area are renting from $650-900+. Our target after repairs and upgrades will be $750/850 per door. With the repairs and upgrades elevating the condition of the property and the increased income from the higher rents, we will effectively increase the value of the property.
Beds/Baths: 10/10*
Subdivision: N/A
Sqft: ~5,000
County: Hinds
Year Built: 1991
Construction: 2 Story Brick
Current Gross Annual Rental Income: $34,980.00
Current Occupancy: 100%
*Each unit has 1bd/1bth
projections
From the property inspection report, the exterior will need some minor repairs along with some cosmetic updates. The interiors of the units appear to be very well maintained and will require some repair and cosmetic updates as well.
We are planning our renovation with a budget of $140k to address all repairs and upgrades.
Projected Gross Annual Rental Income: $102,000.00 (@ $850 per door)
Using the same GRM (Gross Rent Multiple) that the current seller used to value the property, we believe the value should be over $550k.
*This does not include the initial capital investment ($20k).
our offer
We believe opportunities like this completely capture our mission: “To pursue real estate investment, development, and management opportunities responsibly and with integrity with the intent to help build, protect, and preserve the wealth of our investors, partners, and community.”
We have been able to successfully accomplish this in the space of single family properties and intend to mirror that in commercial multi-family properties as well. To accomplish this, we structure our offering to remain competitive with comparable investment opportunities.
There is a minimum buy-in of $10k with a 2 year lock in period. We are offering a 10% dividend paid out semiannually and an equity split at exit. So with a 2 year investment of $20k, we anticipate our investor group will see a 126% ROI.