ELF HOMES, INC. has a unique opportunity for investors to participate in the purchase of a bank-owned portfolio of 18 Baton Rouge, LA rental properties that we currently have under contract. This is a rare over 10-cap opportunity.
These are not distressed properties. They are bank-owned and being purchased at a discount.
There are 18 duplex units in Baton Rouge, LA (all 18 are separate deeded properties) that are a combination of 2, 3 and 4 bedrooms each. Their condition is good to very good. The properties were remodeled in 2006 with granite & wood.
ELF Homes has intends to convert 4 to 6 properties to corporate stay rentals. Our corporate stay units typically rent for 2.5 to 3 times the long-term rate. Once we convert them, the overall project cap rate goes up even higher.
Acquisition Price/ Unit |
$56,000.00 |
Current Market Price |
$70,000.00 |
|
Cap Rate |
Current Income |
7% |
18 Long-Term Rental |
11% |
14 Long-Term + 4 Corporate Rentals |
14% |
ELF Homes is offering a small number of LLC joint venture interests in this portfolio. Joint venture Class A members will receive a 10% preferred return annually on non-returned capital. For every $100,000, joint venture investors will be entitled to an additional preferential 10% of net proceeds from the sale of these assets.
Investors also benefit from certain tax advantages including a 10% share of annual depreciation. The annual depreciation decreases the taxable portion of the preferred return and increases the effective annual return from 10% to 10.9%.
For details, please review the attached investment document. This opportunity is available until August 15, 2014. For investment details contact me directly at Louis@GreenStayCA.com
Tags:
© 2024 Created by Admin. Powered by