The Capital Stack
This week will feature Part I of our third quarterly update of 2024. The portfolio updates we share every quarter highlight each property we own and share a bit of what we work on each day. Let’s dig in.
Suburban 36
In July 2022, we acquired the Suburban 36 portfolio, which includes two properties: Plymouth Gardens and Donovan Townhomes. Both properties rent extremely quickly and require minimal renovations. We recently completed renovations on a two-bedroom unit at Donovan Townhomes, which we currently have listed for $1,500, compared to our original underwriting estimate of $1,300 for a renovated two-bedroom. At the time of purchase, the portfolio had a gross monthly income of $38,030. Today, that figure has increased to $48,812. Having owned the portfolio for just over two years, we are currently exceeding our income projections for year three.
Milford Village Flats
We purchased Milford Village Flats on March 29, 2024, with a gross monthly income of $13,035, which has since increased to $16,098. Currently, we are in the process of renovating two units, one unit is nearly complete, and another is mid-renovation. Since acquiring the property, we’ve renovated four units, signed renewals with existing tenants on four units, and maintained a steady pipeline of turnovers, allowing our renovation schedule to progress smoothly. Additionally, we’ve completed 95% of the exterior renovations, including a new roof, parking lot, painting, tuckpointing, deck repairs, new railings, landscaping, and more.
11 Mile Flats
We acquired 11 Mile Flats on May 30, 2024, with a gross monthly income of $7,200 and an average occupied rent of $900. Today, the property’s gross monthly income is $5,988.50, as two units are currently mid-turn. The first unit we turned was leased quickly at $1,340, along with a $35 pet fee and $13.50 renters’ insurance fee.
Since closing, we have cleaned up the landscaping, painted the exterior, and installed new exterior fixtures. We are currently experiencing a large amount of turnover, which presents us with an opportunity to complete our planned renovations and lease the units at higher rates much faster than originally projected and are on track to be through 75% of the units by the end of October.
Maple Place Apartments
We purchased Maple Place Apartments on August 28, 2024, with a gross monthly income of $9,848. Since we’ve only owned the property for two weeks, the income has remained unchanged. Renovations are nearly complete on the two vacant units present at the time of purchase, and we expect to lease them soon at our target rent of $1,150.
Stay tuned for Part II of our portfolio update, which is coming next week!
Major Market News
Dylan Tent– Elevating Real Estate
This month, we’re featuring our good friend Dylan Tent. Dylan’s unique approach to selling homes in Metro Detroit, using his helicopter for marketing and showings, has been getting some serious attention. His recent Real Deal feature highlights how he leverages aerial tours and helicopter landings to speed up sales and make his listings stand out in a competitive market.
Dylan’s creativity and hustle are earning him recognition, and if you’re looking to sell your home, he’s the one to call. You can connect with Dylan on Instagram @helirealtor.
Source: TheRealDeal. (2024, August 25th) Michigan real estate agent soars above competition, literally. https://therealdeal.com/national/2024/08/25/how-a-michigan-real-estate-agent-soars-above-competition/
Tips and Tricks
Terms-
Gross Monthly Income -Gross monthly income refers to the total revenue generated from a property in a given month before any expenses are deducted. This includes all rent payments from tenants and additional income sources, such as pet fees, parking fees, laundry facilities, or any other charges that generate revenue for the property. Gross monthly income is a key metric for evaluating a property’s financial performance, as it provides a snapshot of its income potential before accounting for costs like maintenance, taxes, or management fees.
