Good news. We recently acquired a 17-unit portfolio in the Pocatello/Chubbuck area from an investor looking to retire. I have personally inspected each unit and am very pleased with the overall condition of the properties. This is a well-maintained and stable portfolio. The opportunity is not necessarily with repairing deferred maintenance, but it lies in the fact that many of the rents are under market.
As the leases come up we will renew the agreements or sign new leases at market rates. As we fully cycle through these leases over the next year, we expect to increase property values by about 20%-25% based on the increased cash flow. This portfolio is going to do a great job delivering long-term cash flow to the Forever Fund.
See the details and terms below.
TYPE: 17 units in the Pocatello/Chubbuck market. Unit mix includes 3 fourplexes, 2 duplexes and 1 townhome.
STRATEGY: Update leases over the next 12 months to market rate rent.
PURCHASE PRICE: $2,450,000
AFTER STRATEGY VALUE: Estimated at $3,062,000
LOAN HIGHLIGHTS: Seller financing - Loan to Value is 88%; 5% APR; 30 year amortization schedule.
The real estate market in Eastern Idaho is shifting to a buyers market creating different opportunities for the Forever Fund.
You can view recent fund updates here, and if you're interested in learning more about the Jacob Grant Forever Fund, please contact us.
