- 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
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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