My partner and I mostly focus on wholesaling, but last August we took over a 5 unit apartment in Ludlow, KY using a 5 year master lease option with the intention of fixing and selling as a turn key. My partner and I are moving separate ways soon, and neither of us have the time to manage and finish the building, so we'd like to try and find someone who would like to buy our position in the master lease, or just out right purchase the building. We're open to any other creative ideas you may have as well.
The building itself is 5 units, which includes (1) Studio, (2) 1BRs and (2) 3BRs. The location is right on Elm street in the heart of Ludlow, KY. If you're familiar with the area, you know that right across the street is the grocery store, gas station, several restaurants, a bank, pharmacy, bars, and it's also on the bus line. Also, with it being just a few mins from downtown Cincy, it's hard to beat the location. All utilities are separated, so tenants pay their own gas, electric, and water.
3 out of the 5 units are rented. Of the two that are not rented, one is partially renovated (New Kitchen, and Paint), and the other needs a full rehab (Kitchen, Bath, Floor). The other 3 units are in pretty good shape. The outside will eventually need some improvements, including paint, and some work on the rear deck. Being conservative, I'm estimating about 10K to finish both apartments.
Our lease option is for 115K which is good for the next 4 years. We're asking 35K obo to buy your self into our position, and then at the end of 4 years, you would have the option to purchase at 115K. Again though, we'll also consider any other creative ideas you may have.
Pictures and financials are below. I'm happy to answer any questions you may have, so please feel free to reach out to me.
| Rents |
| Income | Yearly | Monthly | Rent Status |
| 109 Elm Unit 1(Studio) | $4,500 | $375 | Not Yet Rented (Needs full rehab) |
| 109 Elm Unit 2 (3BR) | $6,300 | $525 | Rented (Month to Month Lease) |
| 109 Elm Unit 3 (1BR) | $4,800 | $400 | Rented (Month to Month Lease) |
| 111 Elm Unit 1 (1BR) | $5,400 | $450 | Not Yet Rented (Partially Renovated) |
| 111 Elm Unit 2 (3BR) | $6,000 | $500 | Rented (1 Year Lease - Started in Aprl 2016) |
| Total Income | $27,000 | $2,250 |
| Expenses |
| Expenses | Yearly | Monthly | Paid | Company |
| Mortgage | $ 13,200.00 | $ 1,100.00 | Monthly | Heritage Bank |
| Insurance | $ 1,400.00 | $ 135.00 | Monthly | State Auto |
| Property Tax | $ 1,600.00 | $ 133.33 | Yearly | Kenton County |
| Garbage | $ 348.00 | $ 29.00 | Monthly | Rumpke |
| Local Tax | $ 400.00 | $ 33.33 | Yearly | City of Ludlow |
| Repairs (5%) | $ 1,350.00 | $ 112.50 | Monthly |
| Vacancy (5%) | $ 1,350.00 | $ 112.50 | Monthly |
| Total Expenses | $ 23,717.00 | $ 1,655.67 |
| Cash Flow |
| Net Cash Flow | Yearly | Monthly |
| Net Cash Flow | $11,683 | $594.33 |
| Calculations |
| Net Operating Income | $20,552 |
| Total Buying Price | $150,000 |
| Cap Rate | 13.70% |
| Capital Needed | $45,000 |
| Cash On Cash Return | 45.67% |
Pictures: https://www.dropbox.com/sh/ftqatf8ypqru7yx/AAB-cn0...
