$1480000

Manistee Lakeview
  • Units: 40
  • Cap Rate: 8.01 Percent
  • Price Paying: 49.33 sqft
  • Price Per Unit: $37000
  • Property Type: Multi Family
  • Gross Rent Multiplier: 5.42
  • Year Built: 1988
  • Monthly Income Per Unit: $2963
  • Expense to Income Ratio: -
  • Average Square Feet: 725
  • Debt Service Coverage: 75940
  • Cash Flow: 42582
  • ROI Year One: 11.51
  • Listing Agent: A.J. Beachum, J.D.
  • Property Features: Lakeview is a well-maintained community of three apartment buildings, all with private interior entrances, spread across a quiet setting, walking distance to Lake Michigan’s crystal clear water. The unit mix contains an attractive split of 16 one-bedroom units (600 sq ft) and 24 twobedroom units (850 sq ft). Lakeview was built in 1988 with a solid concrete slab, and has undergone various recent updates including vinyl siding, roofs, and parking lots. The HVAC is outfitted with Landlord-paid gas hot-water baseboard heating for all three buildings and window a/c units. Tenants pay for the separately-metered electricity. At the $1,480,000 asking price, or $37,000 per unit, this offering represents a compelling 8.01% cap rate and 11.51% cash-on-cash return for a turnkey investment. The complex is currently 95% occupied and has maintained outstanding historical occupancy, requiring only minimal management oversight from ownership. Most notably, the rents at Lakeview are under market: while the one-bedroom units rent at $490, they are $80 below market; the two-bedroom unit street rents are $635 and are $57 below market. If the rents are brought to market level, an additional $30,000 of annual income is created. At an 8.0% cap rate, a savvy investor will increase value of the asset by over $300,000. IPO has projected an NOI of $118,521 based on current rates and market-rate expenses once removed from the U.S.D.A. program it’s financed through. This asset provides a handsome leveraged return, which will not be diminished by immediate capital expenditure needs.
  • Interior Features: -
  • Exterior Features: -

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    Income Property Organization offers customized brokerage services that are designed to meet the specific needs of a wide range of clients -- private owners as well as institutional investors -- who want to buy or sell income property.
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    Income Property Organization
    6421 Inkster Rd., Suite 200
    Bloomfield Hills, MI 48301
    Telephone (248) 932-0300
    Fax (248) 932-0301