TRACK

RECORD

Thorn Street Portfolio – 14 home tract purchased in 2014.

  • Successfully negotiated and closed deal with an owner carried contract of $2.5m with a purchase price of $2.95m

  • Took revenues in 2015 from $13,000 to $21,185 in 2019

  • Tract of Homes Remains in Portfolio as a buy and hold investment and cashflows $5,000/m

Twenty Unit LLC Partnership

  • Purchased 5 four-plexes over the course 4 years

  • Used 1m line of credit to purchase and then refinance all deals sequentially. 

  • Over 4 years $1.9m of cash invested.  Refinance of $1.57m capital returned.

  • Guaranteed Cash on Cash Return of 7% for our Partner.

  • Purchase price of plexes totaling $3,228,500

  • Current Portfolio Value - $3,875,000

  • If we sold today there would be a 650k gain with 300k payback of initial capitol for a 25% Average Rate of Return

  • Rent Revenue per month of $25,665

  • 12225 SW Longhorn Lane:

  • Purchase Price: 350k

  • Construction: 140k

  • Appraisal value after construction 575k.

  • Rents went from 700 to 1295

  • 6817 SW Oak:

  • Purchase Price: 330k

  • Construction: 90k

  • Appraisal Value of 600k

  • Duplex Rented at 2395 / 1595

  • 11551 SW 64th

  • Purchase Price: 132k

  • Construction: 20k

  • Added Bathroom

  • 7210 SW Brier:

  • Purchase Price: 100k

  • Construction: 105k

  • Finished Basement and added 900 sq ft

Uptown Properties

  • Currently Manages over 350 Units

  • Staff of 12 (and hiring)

  • Manage 2 apartment complexes above 60 units (both with onsite managers)

  • Manage owned portfolio of 80+ units

Uptown Construction

  • Performs maintenance and project work

  • 4 employees with a huge network of subs

  • Competitive rates of $55 / hr and 15% markup on subs

  • Completed over 20 projects on owned portfolio

  • Completed over 1000 work orders over the course of 7 years

Summary

  • Uptown Properties is an established property management company capable of producing quality results of management. 

  • Uptown Construction is an established contracting company that produces quality product available to rent at a great rate and in a timely manner

  • AJ and Chris Shepard have a proven track record with many owned investments and will be investing in this deal. 

3325-3331 Garden View

Investment Opportunity Highlights:

7% Cash on Cash Return

Up to 20% IRR

Eight Shares Available, $55,000/ea

THE OPPORTUNITY

  • 3325-3331 & 3365-3371 SW Garden View

  • 8 Plex – 2br/1.5ba units in Portland OR

  • 1 Block N of Canyon Rd and .5m E of 217

VALUE ADD

  • Find an asset underperforming and under value

  • Create a plan to have it operate under its highest and best use

  • Refinance after value has been added to the property to maximize capital and returns.

APARTMENT SYNDICATION INVESTMENT HIGHLIGHTS

  • Purchase price of 1.22 Million

  • Close in Portland Oregon

  • Initial Investment of $440,000

  • Return of 300k upon refinance (~1 year)

  • After Refi 7-9% cash on cash return

  • 25% IRR on remaining 140k investment

  • 700% ROI on remaining 140k over 10 years

  • 850k Net Sale Proceeds after 10 years

APARTMENT SYNDICATION PROPERTY DETAILS AND LOCATION

Property Specifics

  • 8 Units, 2 Buildings – All 2bd/1.5 ba units

  • Currently 4 units vacant (50% occupancy)

  • 852 sq ft ea

  • Townhome style with 2 beds upstairs and ½ bath down

  • Current rents are at 1100-1300

  • Projected New rents are 1300-1500

Property Benefits

  • Easy access to Hwy 26 and 217

  • Great School Districts

  • Very Close to Beaverton Downtown (Being revitalized and developed, 7 min)

  • Close to Downtown Portland (12 min)

Apartment Syndication Improvements and Value Add

Value Add Project $140,000:

Units 3371,3369 and 3331

  • New Kitchen

  • New Flooring

  • New Bath Vanities

  • New Doors and Hardware

  • Update Fixtures

  • Approximately 18k ea

Unit 3325 Minor Repairs

Site Work:

  • New Front Doors

  • Prep and Paint Exterior

  • Landscaping

  • Fencing

  • Replace Gutters

  • Pressure wash and stain   decks

Apartment Syndication Financial Projections Assumptions

  • Income Growth: 3%

  • Expense Growth: 2%

  • Vacancy: 5%

  • Expense per unit: $250/yr

  • Property Management 5%

  • Asset Management 2%

  • Cap Rate on Exit: 5.75%

Apartment Syndication The Opportunity

Yearly Income Projections

Years 1-5 and 10

Projected Sale Proceeds after 10 years

Cash On Cash Return Calculation

  • 3325 : $Vacant

  • 3327 : $1295

  • 3329 : $1295

  • 3331 : $Vacant

  • 3365 : $1200

  • 3367 : $1295

  • 3369 : $Vacant

  • 3371 : $Vacant

Current Rents:

Overall Investment ROI

W/ out Refinance & W/ Refinance

  • Management Fee at 5%

  • Asset Management Fee at 2%

  • Ongoing Landscaping at $200/mo

  • Vacancy at 4%

  • Insurance is quoted

  • Ongoing Maintenance for turn of other 4 units adds up to 50k over 10 years

  • Apartment Expenses is a contingency

APARTMENT SYNDICATION EXISTING CONDITIONS

  • 3 units in poor condition:

  • Replace all flooring

  • Replace all cabinets

  • Replace appliances

All very cosmetic repairs approximately 2-3 months of construction total

FAQ

  • What are other comparable MFH in the general area?  What are their rents /sq ft?                Can the rent bump 10-20% be absorbed by the market?  - Multiple   listings at 1300-1400 for 2x1 800 sq ft. 

  • Is it in a high crime rate area? – Great area, very low crime.  At the bottom of the hill from a very well off neighborhood.

  • What is current Occupancy / what is economic Vacancy?  - Economic vacancy in Portland is around 3-4% which is very strong market for rentals.  New units in are coming online in the 0 and 1 bd market.  2 bd room market does not have a lot of new buildings. 

  • Why is the current seller selling?  - Owner passed away and estate is selling

  • What is the asset management fee and how is it calculated – 2% of the income of the property (not including RUBS). 

  • What type of model, Yeild play, Value add or Hybrid – This is a value add and Hybrid as a Refinance quickly will return a good portion of the investment required

  • How many people are going to be involved in the deal, how much cash is needed, what’s the minimum investment.  - 425k is required, Shepard’s have put up 100k and minimum of 50k.  Max of 6 investors. 

3526 SW Troy, Portland OR 97219 

uptown@uptownpm.com 

503-941-0276

www.uptownpm.com

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