14483 Saratoga st - Saratoga Homes 30 Unit Apartment Building Offered at $1,380,871 CAD Detroit, MI 48205

Saratoga Homes, is an existing LIHTC property located on the East side of Detroit, Michigan. The properties were built in 2005 and placed into service via the regulatory agreement in 2006. There are 30 single family homes scattered across a few blocks. Currently the homes are 90% occupied grossing over $23,500 per month in revenue. These properties have a 15 year compliance period that began in 2006 and has expired. The rent is determined by the average median income (AMI) less the utility allowance, which is set by the Michigan State Development and Housing Authority (MSHDA). The project originally was developed to be sold to the tenants - which some have. There were 45 homes originally, and now 30 remain. The homes can continue to be operated as rentals, or the owner can continue to sell the homes to the tenants. The sale price of the home is determined by the tenants rent, which has to be equivalent to the mortgage they would pay for owning the house. Vacant home values are determined by the median sale price for a house in Wayne County, or the equivalent mortgage payment to whichever AMI rent that house is assigned to. The max allowed rents you can charge are determined by MSHDA in the attached AMI chart, less utility allowances. Currently the homes are very well below the maximum AMI charge. The owner cannot increase rent on a tenant by more than 5% per year, if they are an existing tenants. New tenants can be charged the max AMI. Currently the properties are being managed by a 3rd party property management company - who takes about $126,000+ per year. Self managing or hiring one or two people to manage the property, would free up a lot of cash flow. Selling the homes individually to tenants or qualified tenants, is a strong exit plan.