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Updated almost 6 years ago,

User Stats

193
Posts
41
Votes
Gregory McKinley
  • Rental Property Investor
  • Phoenix, AZ
41
Votes |
193
Posts

Triplex, 10+cap, 25%+ROI, Prime Area, Very Motivated

Gregory McKinley
  • Rental Property Investor
  • Phoenix, AZ
Posted

IMPORTANT LEGAL DISCLOSURES – PLEASE READ

THIS EXECUTIVE SUMMARY IS NOT TO BE CONSTRUED AS AN OFFERING FOR INVESTMENT. RATHER, IT IS PROVIDED SOLELY FOR INFORMATIONAL PURPOSES.

This Executive Summary was prepared by Planet Zen Investment Funding, LLC.

LLC, (the "Company"). The Company does not make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in this Executive Summary.

This Executive Summary is confidential. By accepting the Executive Summary, you agree (i) that you will hold and treat the Executive Summary and its contents in the strictest confidence, (ii) that you will not photocopy, scan, duplicate or email any part of the Executive Summary, (iii) that you will not disclose the Executive Summary or any of its contents to any other person or entity without the prior written authorization of the Company, and (iv) that you will not use the Executive Summary in any fashion or manner detrimental to the interest of the Company.

Any projections contained in the Executive Summary, financial or otherwise, are estimates only, based upon assumptions which may be incorrect, and there can be no assurance as to their accuracy. The achievement of any financial projection may be affected by fluctuating economic conditions, and other factors, and is dependent on the occurrence of future events that cannot be assured.

Project Summary

The Planet Zen Investment Funding, LLC project is a 3 unit apartment complex in a distinguished neighborhood located in Arizona City, AZ, 57 miles from Phoenix. Pinal County is an area picking up growth speed. The property has been under-capitalized over the last few years. The result is an asset that offers tremendous potential to purchase substantially below-market, renovate, and re-position the property in a thriving marketplace. The result can create an asset that provides cash flow, substantial growth in equity and considerable tax benefits. The property will be purchased for $150,000 or $50,000 per door, which is an under-market value-buy in the Pinal County area.

Project Value

The Project Value is based on this factor: 1) Recent comparable apartments sold in the immediate area. Based on comparable apartment sales, the “as-is” value of the project is conservatively between $175,000 and $185,000 upon acquisition. And once rehabbed and repositioned, the conservative value would be between $198,000 -$255,000.

Market Indicators

This 3-unit apartment is solidly built and a great C class property located in a superior C+ Class area. This market area consists of mostly "B" and "C" class residential and commercial complexes. Attractive unit-mix of one bedroom, two bedroom and a three bedroom units. Current rents are $40-$70 below market rents based on a current market rent survey, giving potential to increase net operating income significantly.

With the extremely high barriers of entry for new construction in the Pinal County area along with the high demand for affordable housing, the complex is poised for ultimate market success. Additionally, occupancy is running at nearly 100% in apartment complexes in the immediate area. With the opportunity to acquire this property at such an excellent price per door at this time, the profit potential is exceptionally strong in the short and long term.

Exit Strategies

Below, is a clear, concise, and conservative exit strategy.

Exit Strategy: Hold as cash-flowing apartment rentals and sell when market cycle upturns – 5 to 7 years.

This complex is in a unique and very strong cash flow position with the ability to raise rents $40-$70 per unit reflecting the current market rates, while still maintaining a competitive advantage over local competition. The net operating income, annually, can be increased between $1,440 - $2,500.

I invite your feedback and interest regarding this brief summary of the plan to purchase this complex. Please feel free to call or email me with any questions or to request more information.

Planet Zen Investment Funding, LLC

Attn: Gregory McKinley

Cell (602) 529-2582

[email protected]

Offering

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