| CREOP

The Detroit West Side 3 Portfolio consists of 111 units in Detroit, Michigan. Two of the properties are 95% + occupied grossing over $686k per year. The Louis Apartments, which had a fire several months ago is getting renovated and will be delivered upon finishing the renovation. The next owner will have the ability to step into two, cash flowing assets that have had moderate renovations over the past 3 years, along with an asset that will be ready for new tenants, at an attractive CAP rate.

The properties all received new roofs in 2018. Heat is provided by a boiler in Pickford Place and Stacey Ann, which the landlord pays for (water and gas). Louis has electric baseboard heat - so the owner is only responsible for water. All of the properties are individually metered for electric - which is billed directly to the tenant. The properties are managed by a 3rd party - there are three, full time employees that are on site. One is a property manager, and the other two are maintenance techs.

The properties have strong cash flow - but are under-rented by about 15%. This leaves some meat on the bone for the new owner to increase rents, achieve a nice cash on cash return, or refinance and pull equity out. About 28% or 32 of the units have been renovated at an average of $4,000 per unit. Renovating the rest of the units would increase the gross potential rent by around $112,000 which is a 35% return on investment based on the $4,000 per unit turn.