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29 Units for Sale
Valparaiso Investment Property Prospectus
306 Indiana, 505 Freeman, 460 Locust, 456 ½ Locust
These four properties are in the heart of downtown Valparaiso, Indiana.
Valparaiso has 26,000 residents and is the county seat for Porter County.
The city is 15 miles from a large shopping mall, movie theaters, and a
restaurant complex; 15 miles south of Indiana Dunes National Lakeshore on
Lake Michigan; and 55 miles from the city of Chicago. The city has a
friendly small town atmosphere while providing local and national chain
shopping, many restaurants, and festivals including the Orville
Redenbacher popcorn festival. Porter Memorial Hospital and the downtown
area are within walking distance for the tenants of these five buildings.
In addition, Valparaiso is home to Valparaiso University and the highly
reputable Valparaiso Law School. The university has 3,600 students and is
less than one mile from any of these properties.
These four properties are in a stable and improving neighborhood with
single family homes multi-unit buildings. A group of neighborhood
residents have formed a Neighborhood Association to continually improve
the community and provide guidance and assistance to the residents.
Through donations, they’ve built new homes, built a community center (Reiner
Community Center), and operate children’s programs and perform a
neighborhood crime watch.
The four buildings have had a significant remodeling effort completed on the
exteriors and the individual apartments. Most all the units have new
refrigerators, stoves, and air conditioner units. Outlined below are some
of the significant improvements we have made by building:
- 460 Locust
had additional insulation installed, new roofing,
siding, front and back porches, landscaping, replaced sewer pipes, and
we’ve installed 4 of 5 new furnaces. Additional work performed in the
units includes new electric wiring, plumbing, carpet, tile, painting,
new fixtures, windows and blinds, air-conditioning units and new
appliances. Two units have been gutted and completely remodeled. Tenants
pay their own gas, heat and electric.
- 505 Freeman
has been remodeled on the exterior to include accent
siding, new front/side porches, roofing, painting, and landscaping. All
units have had some improvements made including carpet, tile, painting,
new fixtures, new appliances, windows and blinds, air-conditioning
units, remodeled bathrooms, and new furnaces. Six units have been
completely remodeled. Some main plumbing lines were replaced in this
building. Utilities are not divided and are included in the rents of
this building. New Coin-operated washers and dryers are located in the
building for additional income. There is also a 14’ x 22’ storage
area, which could be rented, converted into a studio apartment or used
to expand current apartments for additional income.
- 456 ½ Locust
apartments have all been remodeled except for one
unit. The electric has been completely upgraded and electric boxes are
in each unit so tenants pay their own gas, heat and electric. New
siding, new porches, partial roofing and landscaping have all been
completed. Additional updates have been new appliances, air-conditioning
units, flooring, plumbing, painting and windows and blinds.
- 306 Indiana
has been completely gutted and remodeled including
new plumbing, electric, drywall, flooring, carpet, tile, paint,
appliances, air-conditioning units, cabinets, trim, fixtures, and
windows and blinds. New siding, new roof including a new flat roof, new
driveway, new porches and landscaping have been completed. All units
have separate gas, electric, heat and hot water. New coin-operated
washers and dryers are located in the building for additional income.
Nine new furnaces. These improvements were completed in September, 2005
and the building is completely rented, 80% to Law Students. Our current
tenants have chose to include their utilities with their rent.
College students and the general public are target tenants due to the
proximity of the University, hospital, and downtown area. Both the city
and the neighbors have been very excited to see these buildings being
improved and have been very supportive in the effort.
The table below provides an overview on the financial perspective of
the properties.
Current Figures
|
Property |
Purchase |
# of |
Total |
Gross Operating |
Total Operating |
Net Operating |
|
|
Price |
units |
Mnthly Rent |
Income (GOI) |
Expenses |
Income (NOI) |
|
306 Indiana(**) |
$499,000 |
9 |
$5,985 |
$71,820 |
$22,128 |
$42,384 |
|
505 Freeman (*) |
$274,900 |
8 |
$4,270 |
$51,240 |
$23,104 |
$26,136 |
|
456-1/2 Locust |
$264,900 |
7 |
$2,970 |
$35,640 |
$7,716 |
$26,772 |
|
460 Locust |
$249,900 |
5 |
$2,256 |
$27,072 |
$8,250 |
$17,808 |
|
Totals ==> |
$1,289,700 |
29 |
$15,481 |
$185,772 |
$58,534 |
$113,100 |
|
(*) 505 Freeman rent includes |
$300/month |
from |
laundry facilities |
|
|
|
|
(**)306 Indiana rent includes $100/month from laundry facilities
& |
expenses reflect curre |
nt utilities included in |
rent. |
|
GOI = Total Monthly Rent x 12 months |
|
|
|
|
NOI = GOI - Total Operating Expenses
Expenses = Insurance premiums, Nipsco/Water utilities past |
use, trash removal |
and taxes. |
|
The rents are based on rents offered by other landlords in the local
area. The Total Operating Expenses are based on utilities past use, taxes,
trash removal and insurance premiums. Additional income is being realized
from laundry facilities located at 505 Freeman and 306 Indiana.
Surrounding residents from other properties also use 505 Freeman’s
facilities, which adds to the positive cash flow.
The community, local government support, and the financials makes this
a solid investment with high returns. The current owner is a passive investor (licensed
real estate broker) who has an active investor partner managing the
properties. This manager is no longer able to devote the necessary time
needed to manage the properties.
Therefore, the owners are interested in selling.
Further inquires should contact Allen Watkins
219-762-3437, fax 208-975-1415
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