Walnut Hills | ZPOC-T376367

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Walnut Hills - $ 400,000

Home > Real Estate > Commercial > For sale > United States > Ohio > Morrow > Morehouse > Detailed listing (ZPOC-T376367)

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Investment Summary

A stake in 89 properties for the price of a 3 bedroom house. Completion timescale 15 months. 21% ROI post-renovation plus ownership share of all 89 rental units.

Investment requirement including renovations, closing costs and shareholding is £275,747.

Current valuations give a return on a joint venture investment of $400,000 equivalent to:

* 33% ownership of property of value $1,200,000 i.e. $400,000 of property

* 33% of annual rental income profits, confident of achieving $132,000 pa, i.e. $44,000 per 33% stake (based upon current rental income)

- actual post-renovation rental income profit valued at $248,000 pa, i.e. $82,000 per 33% stake
* 33% of the capital growth in a $1,200,000 development

Investment Description

15 Buildings, comprising 89 residential rental properties: -

*Apartments (1 bedroom) 45 units
*Apartments (2 bedroom) 25 units
*Town houses (2/3 bedroom) 19 units

Located in central Cincinnati, Ohio, USA.

Currently, 33 units are let, yielding a rental income of $12,000 pcm ($144,000 p.a.).

Current independent value by Hamilton County Auditor is $919,000.

Estimated value post renovation is $1,200,000+.

This is a redevelopment project. Purchase price including renovations, closing costs and shareholding is $400,000 US / £275,747 to bring all remaining 53 units to full rental standard. This would be completed in approximately 15 months (approx. 4 units per month).

Part of this renovation has qualified for Federal Stimulus Funding, a government contribution to renovate the energy components of the property, including exterior doors, water heaters, furnaces, and appliances.

The current rental rate would generate an annual profit of 11% of the property's pre-renovation value. Using figures based upon typical rents for post-renovation, standard lettings yield an annual profit of 21% of the property value.

In addition, the investors would own property with a current market value almost 230% of their investment, giving a solid level of safety to the investor. Capital growth in the value of the property would increase the total return on the investment even further. Even in the most conservative view, the project would provide a profitable return that exceeds the rate of many of the world's most successful blue chip companies.

This is an exciting investment opportunity offering very attractive returns and at much lower risk than most other investment opportunities.

Investment required is $400,000 US / £275,747 with returns being delivered approximately 15 months later, upon completion of the renovations and letting of the improved units.

Investment Offers

The investment sought is $400,000 US / £275,747. The investors will form a joint venture that has complete ownership of the properties.

There is the possibility of rewarding a more timely investment with a larger stake in the joint venture, i.e. greater than 33%.

Joint Venture

National Charity, Developer and Investor shall own all of the properties as a single joint venture
. The properties shall continue to be managed by the developer as residential lettings on behalf of the joint venture
. All parties share in the annual profits in proportion to stake held
. All parties have control in proportion to their stake holding

Return on Investment

Current valuations give a return on a joint venture investment of $400,000 equivalent to

* 33% ownership of property of value $1,200,000 i.e. $400,000 of property
* 33% of annual rental income profits, confident of achieving $132,000 pa, i.e. $44,000 per 33% stake (based upon current rental income)
- actual post-renovation rental income profit valued at $248,000 pa, i.e. $82,000 per 33% stake
* 33% of the capital growth in a $1,200,000 development

Investment Characteristics
Residential Letting
Capital Growth
Fully Managed
Low Risk Profile

Lifestyle Activities
Development
Hills

Amenities and Services
University

Property Features
Views

Key selling points:
21% rental yields
Ownership of 89 rental units for price of a 3 bed house
Low risk investment
Desirable location
Near to major hospital which employes over 4000 professionals
Strong rental market
Area of major development
Near to university

PROPERTY FEATURES

Property type: Business opportunity	Listing type: For sale
Business type: building for redevelopment	City: Walnut Hills
Region: Ohio	Country: United States

FINANCIAL INFORMATION

Asking price: USD 400,000

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Prices may or may not include extra charges like taxes, home improvements, agency commission. Always verify details with the owner or broker.