18 Unit Package - 15 CAP - all brick, wood floors - 92% occupied

[Jack Gibson]

9 Duplex Package in Indianapolis, IN. - 1 Bed/1 Bath.  All brick, all wood floors - these are bulletproof for years to come.  All located within the same block.  There are 3 areas the city has designated to pour $88 million into, this is documented in the local media, and in the works. 5th and Oxford, Mapleton/fall creek, 16th & King. The Medford package is in the 16th & King area. This package has been family owned for many years, with long term tenants, and properties are in great shape.  Floor joists are better than my own house.  Tenant supplies own appliances, which cuts down on your monthly maintenance costs. Property Management is solid and in place, they have over 500 properties under management. You can give them a call to interview them if you'd like, I know PM is a very critical piece to making this cash flow and passive.   Package can be broken up and sold individually.  PM or call my cell:  269-369-9654. 

Purchase Price Finance:  $495,000  Discount for Cash Purchase:  $450,000

Rent:  $9,000/mo.  currently 16/18 units rented at $500/mo. (market rate is $550 per unit and will update with tenant turnover)

PM 10%: $900

Taxes:  $675

Insurance:  $477/mo. (based on current rate just acquired for buyer of 2 of the properties)

Vacancy 8%: $720  

Repairs/Maintenance 5%: $450  (package comes with 1 year Home Warranty, so yr. 1 this will be 0)

Total Monthly Expenses:  $3,222

Net Monthly Income:  $5,778 or $69,336 yr.

Net ROI w/finance: 14% Net ROI with 25% down & 5.5% financing: 31.7%

Net ROI w/cash: 15.4% (expected to be higher with lower maintenance costs and increase of rents upon tenant turnover)