Our multi unit portfolio: Alternative to over heated stock market
The case for buying this portfolio vs. others
Alternative to the overvalued stock market
Stock market is historically overvalued. This portfolio is stable, predictable, and shows a good chance of returning a fairly steady 8-12% cash flow and an overall 22% return on investment. This prediction is based on our historic performance. We sold our largest building a little over a year ago and our overall annual return ended up being 37% per year for 7 years. I certainly wouldn't suggest that you'll get that return with any of the remaining buildings because they are more established, turnkey and stable. But I do believe a 20% return on investment with these properties is very attainable with decent management.
Above average condition
Because we own other businesses for income, we've put much of the earnings back into updates and renovations, making these rental properties as trouble free as possible so that they are easy to manage.
Attractive to good tenants
There will be times (as economic cycles wax and wane) that there will be more tenants than available apartments in the area. When that happens, we want our apartments to stand head and shoulders above the rest. And we promise that they do. At least 3 out of 4 prospects tell us that our units are the nicest they've seen so far. We have very high standards in regards to our tenant selection process. We have high income & rental history standards and require substantial pet fees and security deposits. Our average vacancy rate has been between 1 & 2 percent annually since 2010. This compares to 5%-7% state-wide.
Full maintenance and management team in place
We have a great team in place: heating, plumbing, electrical, and other maintenance people have worked for us for years and are well integrated. One man handles 80% of our maintenance, (and even some management), and has been with us more than 3 years. We can help facilitate a management company for any buyer, or even manage the portfolio for you for a year or so if you prefer, for a fair rate.
Although we have done many upgrades and raised rents regularly as appropriate, there is still room for potential income increases. Our rental rates are mostly still below fair market rents. Our general habit is to leave rents mostly unchanged during a tenant's residency, in essence rewarding those tenants for longevity. Once a tenant leaves, we reassess, make some updates, and raise the rent accordingly. Therefore, most of our units that have longer-term tenants are below market rental rates for the area.
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