Metro Growth is offering turn-key rental properties to investors. These are single-family, duplexes and 4+ unit buildings that have stable revenues from government voucher programs. The property revenues yield over 10% cap rate (revenue to cost). This is a scalable investment program accessible to small investors and large investors and it is great for out-of-area investors who want “hands off” cash flow.
PROPERTIES
The properties are newly rehabbed/rebuilt in Kansas City, MO. The properties are completely gutted to the studs and rebuilt with new plumbing, electrical, HVAC and roofs. They are brought to current energy efficiency codes with new windows and insulation. The major mechanical and appliances are new with warranties which will minimize operating costs.
TENNANTS
Tenants are low-income individuals and families receiving state/federal housing vouchers. The tenants receive their housing vouchers from different housing programs. Veterans Administration for homeless vets. FHA has programs for low-income families, HIV/AIDS patients and former substance abusers.
The programs have very strict requirements on the tenants. They are not allowed to break any laws or cause undue damage to the homes. Any infractions will eliminate the tenant from the program and they are no longer able to participate or eligible to receive housing assistance. If there is damage to the unit caused by the tenant, the government organization assists the owner with repair costs on a case by case basis.
REVENUE
The government rental vouchers supply the revenue at a minimum of $650/month per unit ($7,800/year) and the money is deposited directly in the owners account monthly. The tenants engage in annual leases and stay multiple years. Most stay until they can no longer care for themselves and need assisted living or they are deceased. There is a high demand for low-income housing and the government entities have waiting lists of people requiring housing. For instance, in Kansas City, the VA has thousands of vouchered individuals that do not have housing. The area housing authority has a two-year waiting list with approximately 24,000 families. Vacancy rates are minimized because of the high demand.
ADVANTEGES
- This program is ideal for out-of-area investors
- The rental revenue is deposited directly to the owner’s account
- The rental revenue is stable from a governmental entity
- The tenants usually stay multiple years
- There is ample demand for the housing
- Vacancy rates are minimized
- The properties are rebuilt with warranties on major mechanical items
- Maintenance costs are minimized
Feel free to peruse our website at www.metrogrowth.org or contact me
