61 SFR Units - $7M Acquisition on Owner Finance - Shreveport, LA
In short, we need a JV on a $7,000,000 Acquisition for 61 Single Family units in Shreveport, LA.
The seller acquired the properties over the last 10 years using cash from another prosperous business. The properties are 2/2 and 3/2 properties, all in great middle class neighborhoods, and nearly all of them rent for between $800-1200 per month. All properties are free and clear and the seller is motivated to spend more time at the golf course.
Total Units: 61
Total Rents: $66,922 per month
Taxes and Insurance: $190,656 per year
Vacancy Rate (Estimated): 9% of gross rents
Maintenance costs (estimated): 10% of gross rents
Portfolio Value: Approximately $7,500,000
Total acquisition cost is $7,000,000.
Seller has agreed to between $500k-1M down payment.
Remainder to be owner financed for 30 years at 3-3.5% Fixed with a 15 year balloon of $4M.
Habitat Property Group will manage the properties. We will NOT charge a management fee, but at-cost management expenses will be a part of the regular operating expenses. Partner to share 35% ownership and 35% of bottom line income during the 15 year owner financed period. After 15 years, Partner has options of (a) taking a cash lump sum of 35% of profit and exiting OR (b) continuing a 35% ownership and 35% of bottom line income. Expected return for taking cash is approximately $2,000,000 at 15 years. Estimated return for 15 year+ investment is complete repayment of initial investment within 15 years AND 35% of future revenue.
Habitat is interested in one investor or syndicating several investors. For more information (including projected P+L) please email us at [email protected] or call Daniel and/or James at 318-599-9496 to leave a voicemail.
P.S. Habitat has several other portfolios available on owner finance ranging from $200k-$500K. If you are interested in any, please don't hesitate to call.