Lux. 23-Unit SFR/Duplex Portfolio in N Alabama, $3.595MM, CAP 8%

[Michael Dake]

23 fine residential income properties including 6 duplexes and 11 single family homes all located in fast-growing North Alabama. This is a well diversified portfolio with properties in Cullman, Athens, Hartselle and Decatur. 

These properties are newly built and will require little to no maintenance in the foreseeable future thus offering a very stable cash-flow with very little head ache. They are also well located in areas that are experiencing some natural appreciation in value, offering the new Buyer an option to sell some of the homes separately to increase their Internal Rate of Return on this investment. In addition, the Rental Market is very strong in these areas, with occupancy consistently in the 96%+ range. 

We can predict a very high occupancy on these homes going forward, with upward pressure on rents that should allow for the possibility of rent increases up to 3%. Financing is available with 15-20% down, rates from 4.25-5.25%. We can help a Buyer secure financing for these homes, as well as professional property management if needed. Average rent is over $1225/month, and a typical property averages over 1350 sq.ft. 

These are new homes built by a prominent local building known for his high quality construction. At this return on investment and condition of these homes, this is a strong BUY for Investors interested in these growth areas of Southeast U.S. 

PROPERTY HIGHLIGHTS 

• 100% occupied 

• 8.0% cap rate 

• Likely 12% cash-on-cash return Year One 

• Rents should increase between 1.5 and 3% yearly, on average 

• All properties are newly built brick homes with interior upgrades 

• Internal Rate of Return on a 5 year Hold Period sits between 25 and 30%

Contact me to schedule a review of this outstanding portfolio.