170 Valley, LLC
Investment Performance
10.00%
PREFERRED RETURN
Asset Details
| 170 Valley | |||
| PO Box 30339, Middleburg Heights, OH 44130 | Map | ||
| ASSET TYPE | UNITS | YEAR BUILT | ACQUIRED |
| Single-Family | 170 | 1963 | 11/30/21 |
Property
- Apartment Buildings consisting of 170 units
- Located in Cleveland, Ohio
- Value Add Project
Property Financials
| 1. AcquisitionPurchase Price | $9,000,000 |
| 2. Capital Improvements | $1,100,000 |
| 3. Closing Fees & Carrying Costs | $577,000 |
| 4. All In Costs | $10,685,000 |
Stabilized Projections in 36 months (These numbers are projected/forecasted not guaranteed)
| 1. Net Operating Income | $888,468 |
| 2. Stabilized Cap Rate | 8.1% |
| 3. Stabilized Value @ 6.15 Cap | $14,150,000 |
| 4. New Loan Amount @ 77.5% LTV | $10,996,250 @ 6.1% Refi Cap rate |
| 5. Equity Created | $3,183,750 |
| 6. Cash-Out Refi Proceeds | $286,150 |
| 7. Annual Cash Flow After Debt Service | $240,000 – (assuming 30 Year Amm Loan) |
Investment
- Price Per Share: $100,000
- Shares Available 25
- Exit Strategy: Projected Refinance within 36 months to pay back investors & disburse refi proceeds
- Then Hold for 10+ years for cash flow and to build long term equity
Return On Investment
Each Unit of $100,000 will yield the following approximate projections
Note: If an investor brings in $300,000, they would simply receive 3 units and 3 times the amounts below)
Fixed Preferred Return of 10%
- Earns $10,000 in interest per year
- 10k (year 1) + 10k (year 2) + 10k (year 3)
- Taxed at sale at long-term capital gains rates.
Perpetual Equity of .80%
Earns .80% of Refi Proceeds
- $2,289.20 Projected Cash-Out Refi Proceeds
- Non-taxable Loan Proceeds
Earns $1,920 per year in cash flow
- *($3,429.59 after refi~IF~Interest Only Loan)
- Taxed at earned income rate, offset by depreciation
Holds $25,470.00 in equity at Refi
- Increases annually with principal pay down, appreciation
- Taxed at sale at long-term capital gains rate
Expected Return on Investment
- $30,000 Preferred return (10% annualized interest)
- $2,250 Cash Flow in Year 3 (above pref & costs)
- $2,289.20 Cash Out Refi Proceeds
- = $34,539.20 Total Return On Investment in 36 months | 11.51% Annualized ROI (tax advantaged)
- + $25,470 Equity Retained
- Total + $60,009.20 total return in 36 months
20% Annualized ROI including Equity
+ Principal returned in approximately 36 months
+ Cash Flow + Principal Pay down + appreciation + Depreciation
+ Highly tax advantaged