3 Duplexes (6 units) Lawrenceville, GA (Walk to $200MM dev site!)

[Amy Pedersen]

Location! Location! Location!

You won't want to miss out on these THREE duplexes (six 2 bedroom/2 bath units) in Lawrenceville (30046). These are WALKING DISTANCE from the $200MM mixed use development in Lawrenceville announced last week.

http://www.gwinnettdailypost.com/local/lawrenceville-officials-announce-million-mixed-use-south-lawn-redevelopment-project/article_4d3b0fa4-7c96-57ce-80eb-eb1e6f6337cc.html

AVAILABLE PROPERTIES:

• 40/42 Ezzard StLawrenceville, GA 30046
• 58/60 Ezzard StLawrenceville, GA 30046
• 90/92 Ezzard St Lawrenceville, GA 30046

The units are currently occupied with below market rental rates. Tenants are on a month-to-month basis so you have an immediate opportunity to do some minor repair/upgrades and raise the rent based on other 2 bedroom multi-family comps in the area:

• $900 - 18 Ezzard St - Roughly 1000 sq ft/unit
• $975 - 133 Sandalwood cir - Duplex, 2 bed 2 bath, ~1000 sq ft.,(note outdated kitchen)
• $800 - 373 Stone Mountain St - 2 bed 1 bath 1000 sq ft
• $795 - 233 Scarlet Way - 2 bed 1 bath, 1100 sq ft/unit
• $950 - 390 Sprucewood Ct
• $850 - 391 Bedford Bay Ln. - 2 bed 2 bath ~1000 sq ft
• $810 - 410 Freeport Dr - 2 bed 1 bath, ~900 sq ft,
• Average of these is $869/per unit per month; Rentometer average of 2 bedroom rentals within three miles - $925/month)

ASKING $420k for all three duplexes (6 units) Analysis/Estimates:

• $860/mth * 6 doors = $61,920 yearly gross income.
• $61,920 x .05(5 percent vacancy) = $3096
• $61,920 x .07 (7 percent repairs) = $4335
• $61,920 x .09 (9 percent capex) = $5573
• Taxes estimate = $3300/year
• $61,920 - $3096 - $4335 - $5573 - $3300 = $45,616 = NOI
• NOI/Purchase Price = CAP
• $45,616/$420,000 = .1086 = 10.86% CAP

Recommended Repairs (Immediate & Near Term):

• Interior and exterior paint
• Replace carpet (carpet in bedrooms only in three of the units)
• Repair ceilings in select areas (Roof repairs had been done but not water damage on ceilings from roof)
• Evidence of minor mold in select units (likely from former roof leaks and no bathroom ventilation in select units)
• Repair select decks
• Minor exterior repair
• Consider minor landscaping
• Near term: Replace roofs (Seller has indicated these have been repaired and are not leaking but new roofs are in order)

Photos and Realist reports can be found here: https://www.dropbox.com/sh/0apr7vx1skwl9v5/AAAbYSoovqTAN5XQz1AoEto0a?dl=0 Notes:

• The Realist report for 90/92 indicates 6 bedrooms. Like the other duplexes, there are only 4.
• You will see window units in pictures from one of the units. Seller has indicated the HVAC is in working order but the tenant prefers to keep monthly electric bill lower by using fans and window units.
• Two tenants installed their own "security system" by installing a 2x4 across the back door, however, there has no reported need for that. Just taking extra precautions.

Please note: Only available to cash or hard money buyers who can CLOSE by 10/30/17. A $5,000 deposit, proof of funds and/or pre-qualification letter from hard money lender is due within 24 hours of the Binding Agreement Date. The $5,000 deposit is only refundable if clear title cannot be delivered. Seller disclosures available but properties are being sold AS IS.

Wholesalers - please do not re-market without permission. We control the contract.

Licensed Real Estate Agent Disclosure:

Amy Pedersen (#376207) is a party to this transaction and she is a licensed Georgia real estate agent. Any and all information provided to you is done so strictly for informational purposes. Amy Pedersen DOES NOT represent you in any capacity whatsoever.