Buy&Hold (Rental): 75 Condo Rental Portfolio, St. Louis, MO + UNAVAILABLE
- Dec 9, 2022
- 2 min read
Updated: Jan 20, 2024
Portfolio Investment Opportunity
Portfolio Price
$5,400,000
A Unique Package of 75 Condominiums in St. Louis, MO Priced at $5,400,000 which is an average of $72,000 each. Estimated Cap Rate Over 9%.
Portfolio Background
A cash-flowing package of 75 condominiums and townhomes that are located in North St. Louis County with 24 units in St. Louis Unincorporated, 34 units in Hazelwood, 12 in Florissant, 3 in Ferguson, and 2 in Bridgeton.
The package price is $5,400,000 which is an average of $72,000 per condo.
This package has an estimated Cap rate of over 9%!
Total monthly gross income at full occupancy is $71,135 which is an average of $948/month a unit.
This portfolio has a very stable tenant base. By the end of December, 2022, only two units are expected to be vacant.
Thirty one of the units are on a lease to own program in which the tenants have partial ownership of the LLC that owns the condo. The tenants are granted full ownership of the condo after 15 years of un-interrupted payments. During this time, the tenant is responsible for the HOA fees. The owner provides full maintenance support for the first year, and only the cost of labor after that. Lease-to-own residents often spend their own money to renovate their properties and typically will take better care of the property since they plan on staying there long term. This program allows tenants to purchase a condo in communities that don’t allow renters. The majority of these tenants choose not to complete the purchase for various reasons. Currently 3-4 tenants are on track to complete the purchase. The remaining properties will most likely revert and be available to new tenants/co-owners.
Why Investors Love Condos:
Fewer maintenance requests since the exterior is managed by the HOA.
Exterior maintenance from the HOA helps to keep the entire condo community looking good. In a single family neighbor- hood, blight caused by distressed homes can affect everyone’s property values.
Renters with behavior issues tend to want the privacy of single family homes, rather than a condo community environment.
Fewer break-ins typically because of the proximity to neighbors.
Lower demand for large dogs from tenants which reduces wear and tear on the home.
THE NUMBERS
Annual Gross Rent ($71,235/mo x 12) $854,820
HOA $15,150 - $6,579 Lease To Own Tenants = $8,579/mo
Annual Taxes $52,323/year
Annual Insurance. $550/door = $41,250/year
Annual Maintenance Estimate = $66,933/year
Vacant (5%) = $42,741/year
Property Management 7% = $59,837/year
Annual Net Rental Income = $488,788
Cap Rate = 9.05%
Maintenance above is calculated based on 10% for rental units and 5% for Lease to Own (LTO) units since LTO tenants are responsible for material costs after the first year and the HOA covers exterior maintenance, sewer and some insurance. LTO tenants are responsible for their HOA fees.
Please submit all offers to sarter@promiselandrealtyllc.com
Additional information available upon request with the proper requirements.
Property Map
"Your #1 Source for Off Market Investment Properties, NATIONWIDE"
PROMISE LAND REALTY, LLC
Work: 864-762-2509
sarter@promiselandrealtyllc.com
All Off Market Properties are sold 'As-Is'. Buyer must do their due diligence. Sold on warranty deed. We are selling our assignable interest. Proof of Funds is required with all offers. Earnest Money Deposit due within 48 hours of accepted offer. Closings are done quickly and with a title company/closing attorney. *Realtors add your fee on top*
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