Including Completion And Rental Status
Internally, we periodically review whether we’re hitting the mark on our projects. It’s always tough to tell during the construction process, but once a house is finished, we can see the physical product and decide if it’s up to our standards.
On the financial side, once the property is rented, we get an idea of whether we are hitting our financial goals. Of our 29 properties, four are completed and have been rented. Due to COVID-19, we reduced our rent prices a bit, but we’re moving our rents back up on new projects coming online now that the scare seems to have subsided. While there’s a myriad of assumptions in order to project returns, the main ones and what we use are appreciation of real estate (we use the historical average), vacancy (10%) and the various expenses. Below are all of our projects that have been completed and rented with our property level projected financials.
Snapshot of Financials of Properties Rehabbed and Rented
Please see PPM for risk disclosures and assumptions
|Properties Rehabbed and Rented||Total Cost||Projected Annual NOI||Estimated Project level Return annualized return* (65% LTV)|
|306 E. 7th||$104,059||$4,350||12%|
*Includes all estimated expenses at the property level (prop management, 10% vacancy factor, repairs, etc.) but does not include expenses for the entities (bookkeeping, audit, accounting, legal, etc.). Please see PPM for full details of expenses, assumptions and risks.
*Does not include benefit of Lexington city grant money.