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Real Estate | Realestate2020

Real Estate

At 20/20 Real Estate, we supply properties in three broad demographic levels.

Class A properties typically range in price between $100,000 and $175,000 and are located in suburbs where the neighborhoods are predominantly owner occupants and are better school districts.

Class B properties typically range in price between $50,000 and $100,000 and are located in suburbs where the neighborhoods are a mixture of tenants and owner occupants.

Class C properties typically range in price between $30,000 and $50,000 and are located in suburbs where the neighborhoods are predominantly tenants occupiers in supported housing.

 

classa

CLASS A RENTAL PROPERTIES

Location: Suburbs where the neighborhoods are predominantly owner occupants and are better school districts.

Property Values: Typically range between $100,000 and $175,000.

Monthly Rents & ROI: Range from $1,200 to $2,000. ROI can range from 8-10% on an all-cash basis, with higher cash on cash ROI when leverage is applied.

Refurbishments: Finishes are of a higher quality to suit the occupant base and demographic.

Tenant Base: Tenants in these properties are often middle-class income level families/households. Tenants are non-transient, where tenancies typically last 5+ years.

Financing: Lenders currently offer financing on most Class A assets.

Exit Strategy: This tenant base can qualify and thus often be converted to end buyers, as a mutually beneficial exit strategy. Lease option strategies can apply. Alternatively, upon turnover, class A assets can be prepped for retail sale and achieve top market sale prices.

classb

CLASS B RENTAL PROPERTIES

Location: Suburbs where neighborhoods are a mixture of tenants and owner occupants.

Property Values: Typically range between $50,000 and $100,000.

Monthly Rents & ROI: Rents range from $850 to $1,200. ROI can range from 10-14% on an all-cash basis.

Refurbishments: The value added work and finishes are of a quality rental grade. We systematically use the popular paint color, carpets, flooring, finishes, etc, on all Class B assets, which helps to attract good tenants and fast tenant placement.

Tenant Base: Often lower middle-class income level families. Occupants are non-transient, where tenancies average 3+/- years.

Financing: Properties in the $50,000 to $75,000 bracket are cash only. However, asset based lenders exist with the purchase of 3 or more class B properties priced in the $75,000 to $100,000 bracket will usually qualify for conventional financing.

Exit Strategy: Class B assets are investor favorites, due to decent locations and commanding rents, and can attract other investors at market prevailing cap rates. As lending guidelines continue to loosen, this tenant base may also convert to end buyers, as a mutually beneficial exit strategy.


Lease option strategies can apply.
classc

CLASS C RENTAL PROPERTIES

Location: Neighborhoods are predominantly tenants.

Property Values: Typically range between $30,000 and $50,000.

Monthly Rents & ROI: Rents range from $650 to $950. ROI can range from 14-16% on an all-cash basis.

Refurbishments: Mechanicals and major items are typically addressed. Finishes are of lower quality rental grade – enough to pass a section 8 government housing inspection.

Tenant Base: Tenants in these properties a often low income and government subsidized.

Financing: N/A. Cash only.

Exit Strategy: Class C assets typically offer the lowest entry price and can offer the highest cap rates, if managed properly. As such, they can attract investors at market prevailing cap rates.

20/20 Real Estate: Your Vision. Our Expertise.