Senior Housing - Class B Multi-Family Value Add - Ten Attached 2 Bed 1 Bath 1 Car Garage Townhomes

This 10-plex is located in Sullivan Illinois. Sullivan is a tourist destination due to its proximity to Amish shops and Lake Shelbyville. The ten 2 bedroom 1 bath 1 car garage townhomes are occupied by senior citizens. This property has not been adversely affected by COVID due to most of the residents receiving social security and/or pensions.

2020 property taxes were $10,650.74. 2020 property insurance premium was $2,536 at a $1M replacement value. Landlord average monthly utility expense is $65.20. All units are individually metered and tenants are responsible for all utilities. All units have washer/dryer hookups, however landlord currently does not provide washers/dryers. New roof (complete tear-off) with Owens Corning Duration (lifetime) shingles was installed June 2020. All furnaces and AC units were replaced with high efficiency between 2017 and 2020.

Property consists of 3 adjoining lots totaling 2.476 acres. There currently is a need for more storage units in Sullivan for boat and RV storage, which would be a good use of this extra property. One of the adjoining lots has been used for commercial vegetable gardening in the past which could be another source of income.

This property has many long-term residents and rents are significantly under market value. Current highest realized rent is $700. If the kitchens and baths were updated, comparable properties in this area command a $750 per month rent. Property has experienced zero financial vacancy since I purchased it in 2019. Units are rented before tenants move out due to supply and demand in this area.

Property has historically been managed remotely and it would be easy to continue doing so. Current owner is willing to manage for 8% and will take care of small maintenance issues for $15 / hour.

Current rents as follows:

Unit 1 = $700
Unit 2 = $525
Unit 3 = $600
Unit 4 = $525
Unit 5 = $525
Unit 6 = $525
Unit 7 = $525
Unit 8 = $525
Unit 9 = $650
Unit 10 = $605

Current gross monthly rent = $5,705
Current gross yearly rent = $68,460

Proforma gross monthly rent (no remodel) = $7,000
Proforma gross yearly rent (no remodel) = $84,000

Proforma gross monthly rent (with remodel) = $7,500
Proforma gross yearly rent (with remodel) = $90,000

Please contact me through Bigger Pockets or I can be reached at 847-220-8212 or sullivanrentals at protonmail dot com.

Location:

600 S. Washington St., Sullivan, IL 61951