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.

Examples

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)
545 Ohio	$70,145	$3,673	14%
460 Chestnut	$87,600	$4,799	12%
456 Chestnut	$112,822	$5,640	14%
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.