Update: October 1, 2024
In just one month since acquisition, the property is already listed for rent. This quick turnaround demonstrates our ability to create value rapidly and capitalize on our in-house expertise.
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Acquisition Summary:
Property Detail: 3BR 1.5BA Bungalow
Acquisition Date: August 30, 2024
Acquisition Price: $65,000
Capital Expenditures (CapEx): $35,000
Potential Rent: $1,200
After Repair Value (ARV): 150,000
This unassuming charmer is situated within the Rosedale Park neighborhood, a designated historical district with two parks, Stoepel Park #1 and Rosemont Acacia Park. The house is close to a fresh foods local supermarket, and further up the West Grand River Avenue, a Meijer branch.
As has been mentioned in the past, our fund, the Mutual Trust Management Advisors, LP prides itself on the efficient structure where one of the members of the General Partner runs Detroit’s biggest property management company.
Many fund managers do not visit their actual acquisitions, nor handle the underwriting process hands on. As a start-up fund, our intentionally skeletal management team does both, and it definitely saves us time and our investors money.
As is typical with all our acquisitions, this property was purchased as a value-add play, and the repair quote was ready by the time the underwriting was done. Right after closing, the crew got to work immediately.
Even though the repair invoice looks substantial, the actual work mostly consists of trash out (a lot of it), replacing the old carpets with vinyl flooring, and other minor cosmetic items. As such, we expect a quick turnaround for this property to bring the below equity within weeks.
Estimate of Total Equity To Be Gained at Acquisition State
Purchase Price: $65,000
Repair Cost: $35,000
Equity Growth: $50,000
Growth in %: 50%
Real estate purchases make or break your investments. Locking in as much equity as possible during our initial acquisition stage is the MTMA way.