The purpose of this loan is to finish the build of 3 new ADU units on subject property, increasing its size from a 4 Unit to a 7 Unit residential rental property. Mortgage Vintage had an independent 3rd party conduct a Construction Feasibility Report that confirmed the Funds Control from this loan will complete the ADU project with a new After Completion Appraised value of $3.2M.
Borrower has personally invested $630K “skin in the game” into this investment property since its acquisition in early 2020 with 25% down payment on purchase and another $285K in remodeling expenses, including work to date on present ADU construction project.
The borrower’s current and in good standing $999kK 1st TD is a conventional loan, 30 year @ 4.50%. Exit strategy: commercial refinance as soon as ADU project is complete.
Separate from this subject property and borrower’s residence, borrower’s Schedule of Real Estate includes 5 other Duplex and Multifamily income generating rental properties in neighboring Northern California areas with $3.5M of Net Equity value.
The subject property is a 1 story, traditional style multifamily residential property that is very well located in the heart of the Bay Area, city of Hayward, Alameda County, CA. The subject property currently consists of 4 units, all of which are fully occupied with tenants earning $9,200 per month. After completion, the subject property will consist of 7 rental units with a combined 6,104 SF of rentable living space on a 31,038 SF lot. All combined there will be a total of 12 Bedrooms / 11 Bathrooms and 1 studio. The expansion project includes adding two larger 3 Bedroom / 3 BA Prefab units (1,190 SF each) in the large cleared-out/prepped backyard and converting an existing detached garage into a Junior ADU (300 SF). The subject property also features 7 assigned parking spaces for tenants. Once 3 new units are complete, borrower projects total rental income will increase to $18,500 per month.
The subject property is surrounded by similar residential single and multi-family residential properties. The subject property is centrally located near grocery stores, restaurants, shops, public schools, churches and local city parks. The subject property has easy access to major Bay Area interstate highways as well as walking distance to public transport (BART, Amtrack and Muni) with links to nearby metro cities San Francisco, San Jose and Oakland.
What we like about this Trust Deed opportunity:
- Very experienced real estate investor
- Multifamily income generating rental in well located Bay Area neighborhood
- 10.50% Investor Yield
- CLTV: 46.59% / Net CLTV 43.80%
- $1,709,000 Gross Investor Protective Equity on $3.2M ARV
- 6 Months Guaranteed
- 6 Months Prepaid
$495,000 2nd TD @ 10.50%, Multi Unit Res., 46.59% CLTV ADU Const, $49.5k Min Investment, Hayward CA
