Equity Investor for Ann Arbor Campus Property

[Jason Hill]

Hello,

My partner and I are looking for an equity partner for a deal on a hold property in Ann Arbor, MI. This is a high rent district where there is already a shortage of housing for the student population.

Currently it is a single family residence, 2 bedroom, 1 bath + 2 halfs. It is 3 stories plus a basement and overall in really good shape. We're buying this from a private seller.

The offer we're almost done negotiating will require 20k down. Additionally we need to finance roughly 35k in renovations for converting the house from single family to a student rental. We plan to have a total of 5-6 bedrooms, 2 baths and 2 half baths by the time we're done. We also need to repair 2 porches. Some other mostly cosmetic modifications will be done to make this a legal rental for up to 6 people per zoning.

We will have a 2 year interest only land contract with the seller benefiting us with financing. After we own the house for 12 months, we plan to refinance it to pay off the seller. We already have confirmed with a bank the ability to do this coming from a land contract. We would place it on a 30 year mortgage in order to maximize cash flow.

Our intention with this is to hold it for at least 2 years if not longer as it will cash flow very well. We are also planning to place it under rental management with a well known property manager in Ann Arbor who specializes in student rentals for 7% of the rent. If there is an opportune point in time to sell afterwards we might consider it.

For a $55k investment we are now offering a 15% stake in the property profits. Return of the principle would be at the time of sale. The other option we would like to offer is a 5% stake for a $20k investment. This also is a long term investment with the principle returned at the time of sale. Earnings are on the percentage of cash flow from rent (distributed regularly) as well as profit when we sell.

Please contact me for more information on this deal! Thanks!!

Jason Hill

734.845.9862

[email protected]