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BBTB Realty LLC

Proposal for

Real Estate Investment

Prepared for

15444 Snowden Detroit, MI


Investment Summary

The Monnier College Park Neighborhood

This document relates to BBTB Realty LLC's ("BBTB") investor proposal for a home in the Monnier College Park Neighborhood ("Monnier").

Project description

BBTB seeks to sell a bungalow style home in the Monnier neighborhood. The home is currently being rehabbed and we are giving options to include the rehab in our sell to turn the project into a turnkey opportunity.

Market overview

Rental rates in the markets for residential properties in the Monnier neighborhood and the 48227 zip code have been stagnant for the past 3 years. These rates are not expected to significantly change over the next 4 years.

Residential vacancy rates in the market are currently around 29%. These rates are expected to fall significantly over the next 2 years.

Financial analysis

As-Is Asking Price =$11,000

Turnkey Asking Price = $34,000

Rental rate demand = $650-1200

Expected return on investment = 12.1-23%

Project Description

BBTB has placed 15444 Snowden under contract and is looking to sell their interest along with the opportunity to own the lot next to the property for only $11000. We also propose to add the cost and time of rehab to the price to help create a turnkey opportunity.

Existing site

Located in the Monnier neighborhood, this home is a large four bedroom two bath bungalow with a full basement. The property's electrical system and plumbing have been recently updated and are only in need of a cosmetic facelift.

Building details

Exterior Images

Roof Images


Yard Images


Interior Images: Ground Floor

Interior Images: Second Floor


Interior Images: Basement

Misc


Area Map

Market Overview

Demographics

The 48227 area has approximately 45,000 individuals residing there. The population is set to increase 24% within the next four years. 95% of the population is of black descent, and around 54% of the whole population are blue collar workers.

Neighborhood analysis

Transit

15444 Snowden is a four-minute walk from the Schaefer and Midland bus stop. This bus stop runs from Schaefer and 8 Mile to Brennan and West Jefferson. The stops are every hour from 5 am to 10 pm.

Employment

With many service jobs in the area and four hospitals within 10 minutes of the property. This area attracts many blue collar workers (~54%). Average household income is approximate $41,000 and those who fall beneath that have plenty of opportunities for government assistance programs, such as Pell and DHS.

Shopping

With over 30 options for shopping, the area is not lacking a decent shopping experience. The demographic that currently resides there have most of the shops they are looking for. If your tenants/investors require something more high-scale, you are not too far from the University District wich boasts many restaurants and boutique shopping.

Medical

There are four hospitals, including Henry Ford and Sinai Grace, within 10 minutes of this property.

Schools

The Monnier neighborhood is fortunate to have one of the highest rated DPS high schools in the city. Renaissance High School is better known for their math, technology and science preparations and high graduation rates.

The Monnier neighborhood is also very close in proximity to many universities and colleges. This property is five minutes from the University of Detroit, Marygrove College, and Eastern Michigan University.

Market Overview

General market conditions

The Monnier neighborhood along with the 48227 zip code is sandwiched between the Grandmont Rosedale and University District. It holds many of the same architecture that these two areas have, but with more upside to profitability.

Rental rates

Rental rates in the markets for residential properties have been stagnant in the past four years, around $750, and there are not any plans to have a significant increase in the next four years. Being a bridge to Grandmont Rosedale and the University District, there is an opportunity to capture those who cannot afford staying there to a more affordable option.

Schedule

If you choose to work with our contractors we will have the rehab ready within three weeks with the following schedule.

Phase

Description

Number of days

Phase 1

Develop Statement of Work

1 day

Phase 2

Clean Up and Demo

3 days

Phase 3

Finish Mechanicals

7 days

Phase 4

Finish Flooring and Walls

7 days

Phase 5

Place Fixtures

5 days

Phase 6

Finish and Clean Up

3 days


Total Days

26 days

Financial Analysis

Lease pricing: Options

Market Rate

$750 per month

HUD Vash

$650 per month

Section 8

$867 per month

Student rentals

$300 per month - per room

Projected net income

See below for our project net income analysis over a period of 30 years.

Note: Feel free to adjust the numbers in the sheet to see how different eventualities affected the 'expected net income' figure.

Management Fees


Our commitment

BBTB Realty LLC

was established in 2017 with the intention to revitalize a city that has given so much to the founders. We are a team of passionate investors who seek only to deliver significant returns for our clients!

Our team

We're based in Detroit and Atlanta with over 12,000 connections to investors, contractors, marketers, and real estate professionals. We love finding great properties and generating massive returns for our investors. The team is led by:

Jamarr Hill

CEO @ BBTB Realty LLC

Jamarr Hill, our CEO, will be leading the team. He's a real estate professional, Air Force veteran and digital marketer. He's worked with financial institutions to improve their online reputation and worked at Quicken Loans as a social media strategist. He has bought and managed over 7 SFHs before deciding to take the business serious.

Can we clarify anything?


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