Concept: Assemble a collection of single family fixers in the Studio City area and hold them for two to three years, then fix and flip.
A portfolio of 10 SFR Homes in Studio City Area costing 6.4 million - being held to fix and flip in two years. Portfolio generates 14,000 net per month and 2.9 million in profit at the end of the hold. Got 100,000? Come join us!! make 100% on your money in two years...
The Sober living market in the Studio City Valley Village area is going through a transformation from a cottage to a professional industry. There is an opportunity to go into the business with some of the established providers of Sober Care Services and provide a critically needed social service for the community while making a windfall profit.
The key to this strategy is holding the properties at a positive cash flow while the market rises. The holding mechanism is to set the properties up as Sober living houses. The economics work very nicely with the houses covering all expenses, taxes and mortgage costs. Assuming a portfolio of 10 houses with a starting value of 6,000,000 a 20% market increase and a 10% rehab cost, there is a chance of making 70 to 90% IRR on an equity investment of 1,500,000 in two years.
Summary - Sober Living Network
Purchase 10 Single Family Homes $5,885,695
Startup Construction Costs
Sitework (Landscaping, Patios, etc.) $30,000
Exterior Repairs and Improvements $50,000
Interior Repairs and Improvements $100,000
Furniture, Fixtures and Equipment $77,045
Hard Construction Subtotal $257,045
TOTAL Starting Cost $6,142,740
Rehab Prior to Sale
Sitework (Landscaping, Patios, etc.) $100,000
Exterior Repairs and Improvements $147,701
Interior Repairs and Improvements $400,000
Furniture, Fixtures and Equipment $345,980
Hard Construction Subtotal $993,681
Indirect and Soft Costs
Entitlements, Design and Permits $52,299
Developer's Fee and Overheads $359,436
Soft Cost Subtotal $1,411,632
Total Project Costs $8,548,053
Debt $6,059,634 71%
Equity $2,488,419 29%
Sources of Equity
Investors $1,099,667 80%
Developer $179,718 20%
Cash Flow $1,209,034
Sales Proceeds $9,779,914
Sales Profit $1,231,861
Net Income during Holding Period $1,542,365
Total Project Profit $2,774,226
Division of Profit
Send your interest to Motherco@aol.com and we will forward a copy of the business plan.