Investment Highlights
- Stabilized Rent Potential: Rental increase to $1,200/month is expected after Section 8 adjustment.
- Value Growth: Area appreciation and low purchase price support ARV estimate of $110,000.
- Strategic Location: Proximity to key amenities and major employment hubs.
Market Comparables
- Comparable homes in the area range from $105,000 to $160,000, depending on size, condition, and updates.
- Recent sales indicate strong demand, with a median value in the neighborhood of $94,000 (48235 zip code appreciated 10% last year).
Area Insights
- Location Benefits:4 minutes to DMC Sinai Grace Hospital.
- 5 minutes to major retail: Home Depot and Glory Super Market.
- Nearby Greenfield Market offers larger fresh food options.
- Management Familiarity: The property manager has extensive experience in College Park, managing multiple properties in the area.
- Strong Appreciation: The zip code 48235 appreciated 10% last year, outperforming Detroit’s overall property appreciation rate.
This property has outsized equity growth potential. Once the Section 8 Rent is raised to where the Team believes it should be, the cash-on-cash return on capital will also match its equity potential.
Disclaimer
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities in Mutual Trust Management Advisors, LP. Any offering of securities is made only to verified accredited investors pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933. The financial projections, including estimated cash-on-cash returns and property valuations, are forward-looking statements based on current assumptions. These figures are not guarantees of future performance. Real estate investments involve inherent risks, including the potential loss of principal. Past performance is not indicative of future results.