THE OWNER OCCUPIED LANDLORD:
The following is an overview of how 692-694 Church Hill Road can become an “expense-free” owner-occupied property, and how in a short period of time, with the tenants in the apartments covering all expenses, creating multi-million dollar equity and creating generational wealth for an owner.
Banks will finance this property as a commercial, 5 unit property, and will offer the following financing:
20% down payment @ 6% Loan Rate 15 Year Term
Monthly Commitment - Total: $10,500 (before rental income)
MINUS Current monthly income from 4 apartments at 694: - $7,200
Monthly Commitment (after rental Income)- Total: $3,300 per month!
Appraised Value and Gained Equity:
From May of 2022 until May of 2023, the appraised value of 692-694 rose 14.7%
From May of 2023 until May of 2024, the appraised value of 692-694 rose 9%
Assuming values continue to increase at a rate of 10% per year these numbers will apply to 692-694's value after a purchase price of $1,389,000:
After 5 years, the balance on the initial mortgage will be $945,000, placing the owner in a positive equity position of $1,292,000, and owning a property valued at $2,237,000.
In 5 years, if the property is refinanced for the balance of the loan of $945,000 for 4% interest rate over 15 years, the monthly mortgage payment with taxes and insurance (using current prices), would be $8,200/month.
If rents are increased an average of 5% per year, the income from the 4 apartments would be $8,800 per month. This would create a positive cash flow of +$600 per month and essentially allow an owner to live free of mortgage, insurance, taxes and annual maintenance.
Benefits of Owning Income Property at 692-694:
It's well known that rental housing in Chittenden County is very limited. Vermont has the 2ndlowest vacancy rate in the country, according to Vermont Business Magazine, in an article from September of 2023:
Vermont Business Magazine, “A report from Helpadvisor.com found that in Vermont, only 2.4% of all rental units are vacant as of Q2 of 2022, which is the 2nd lowest percentage out of any state in the nation. Only Connecticut has a lower rate.“ This means that for every 100 rentals in Vermont, only 2.4 are available at any given time.
In a comparison from a 2024 appraisal, of available Studio, One Bedroom and Two Bedroom apartments in Chittenden County, the monthly rent averages are:
Studio: $1,700 (694 Studio presently at $1,600, and $100 lower than comps)
One Bedroom: $1,800 (694 One Bedrooms at $1,800)
Two Bedroom: $2,480 (694 Two Bedroom at $2,000, and -$480 lower than comps)
The rental market in Chittenden County is especially tight, which makes 694 easy to rent, and obtaining quality tenants is never a problem. There are a large number of qualified tenants who don't want to live in a city such as Burlington or Winooski, which creates a high demand for what the property at 694 has to offer.
Other Comparables:
Real Estate Taxes:
Average Real Estate taxes on the 31surveyed properties is $13,800 per year. The real estate taxes on 692-694 are $9,700 per year, which is 30% less than the average of those properties surveyed.
Average square feet of the 31 properties surveyed is 3,200 sq. ft. per building. The square footage of 692-694 is more than double that average at 6,600 square feet.
Price Per Square Foot:
Average sold price per square foot across 31 surveyed properties is $287 per square foot. The property at 692-694, has a selling price of $210 per square feet. This is 27% lower than the $287 per square foot average of other Chittenden County multi-family properties.
Summary:
Whether a buyer is looking for an excellent investment with an outstanding annual return, or is interested in being an owner-occupied buyer, 692-694 Church Hill Road Charlotte offers unmatched opportunity!
As an invester, with nearly a 10% return per year, your tenants will completely pay for the property in 10 years, while generating additional income in the process!
As an owner-occupied buyer, this property will have the tenants paying for the mortgage, real estate taxes, maintenance and insurance (after a refinance in 5 years), allow a buyer to live in the house for only the cost of heat and electricity, and will create generational wealth rapidly!
NOTE: All numbers generated are speculative and based on historical data and are speculative.
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