Property Update (04/06/2026):

Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):

Yhome Net Due TO DAO: $-6,395.02

Lofty Operating Cash: $12,376.10

ECO Operating Cash: $-31.95

Outstanding Liabilities (Unpaid Bills): $0.00

DAO Net Cash (Capital Call): $12,376.10

Estimated Owners' Equity: $0.00

DAO Estimated NAV Per Token: $6.28

DAO Tokens: 1971

Current PM: ECO (Sold)

Property Update (04/05/2026):

Cross-check against Yhome Transition Reconciliation.xlsx shows 13806 Coit Rd, Cleveland, OH 44110 flagged as ECO (Sold).

Current reconciliation status: Yhome owes Lofty, DAO, and DAO owes Aligned.

Public DESCRIPTION.md and DETAILS.md refreshed to reflect sold status.

Property Update (02/11/2026):

Agent discovered on 1/8/26 that both of the brand new hot water tanks and both furnaces (one new, one old) were stolen. The side door was open and a window was open. We do not know who did it and don't have video or photos of the incident. In lieu of replacing at DAO's expense and additional delays, the buyer lowered their offer to $80k cash (previously $94.5k financed).

The property sold and closed on Jan. 31, 2026. Funds will be sent to Lofty for final redemption.

Financial Summary as of 2/11/26:

Net Sale Proceeds: $69,981.75

Due to Yhome: ($6,395.02) (held back as 128 EARLDAO shares)

Due to Ashdod City Corp: ($30,000)

Due to Lofty OR: ($15,911.61)

Due to ECO Systems: ($4,625.67)

Final Tax Return: ($200)

DAO Net Cash: $13,049.45

Redemption: $6.62/share

Closing Package

Aligned Final Statement

ECO Systems General Ledger

Property Update (09/23/2025):

Governance Results for 13806 Coit Rd:

The Governance Voting results are back for the owner proposed vote.

The winning vote is:

Accept the Offer

This voting option received 782 / 782 token votes which is equal to 100% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3229808669

Property Update (09/17/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

The current property manager, ECO Systems LLC with the following wallet address, is proposing a governance vote to sell the property.

Earl holds 7 tokens in this property.

The property manager's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

View Governance Proposal

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, September 23rd once the voting period ends.

Property Update (09/17/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

The current property manager, ECO Systems LLC with the following wallet address, is proposing a governance vote to sell the property.

Earl holds 7 tokens in this property.

The property manager's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

View Governance Proposal

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, September 23rd once the voting period ends.

Property Update (07/15/2025):

Governance Results for 13806 Coit Rd:

The Governance Voting results are back for the owner proposed vote.

The winning vote is:

Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee

This voting option received 262 / 362 token votes which is equal to 72% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3120229626

Property Update (07/07/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

The current property manager, M1 Homes LLC with the following wallet address, is proposing a governance vote.

M1 Homes LLC holds 50 tokens in this property.

The property manager's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

PROPOSAL: Transition Property Management to ECO Systems LLC

Background:

When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes’ intended role.

Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.

Recommendation:

We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property’s financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.

Key Points Supporting This Proposal:

Original Agreement Integrity: M1 Homes’ proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.

Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.

Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.

Operational Efficiency: ECO Systems LLC, in coordination with Hemlane as sub-property manager, offers a lean and transparent fee structure with no repair markups and rent-readiness verification.

Property Management Transition (If Property is Retained):

Option 1 ) Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee: One month's rent Hemlane rent-ready service $495 + materials & labor costs 10% markup on repairs or maintenance to Aligned if we must stay with them due to LAIC requirement, no markup to ECO Systems Rent placement to follow post-rehab verification

ECO Systems may initiate capital calls post-transition

Option 2 – Reject Vote #2 and Remain with M1 Homes LLC

M1 Homes remains as manager

No changes to current structure

Financial obligations remain unresolved under the existing framework

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 15th once the voting period ends.

Property Update (07/07/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

The current property manager, M1 Homes LLC with the following wallet address, is proposing a governance vote.

M1 Homes LLC holds 50 tokens in this property.

The property manager's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

PROPOSAL: Transition Property Management to ECO Systems LLC

Background:

When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes' intended role.

Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.

Recommendation:

We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property's financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.

Key Points Supporting This Proposal:

Original Agreement Integrity: M1 Homes' proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.

Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.

Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.

Operational Efficiency: ECO Systems LLC, in coordination with Hemlane as sub-property manager, offers a lean and transparent fee structure with no repair markups and rent-readiness verification.

Property Management Transition (If Property is Retained):

Option 1 ) Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee: One month's rent Hemlane rent-ready service $495 + materials & labor costs 10% markup on repairs or maintenance to Aligned if we must stay with them due to LAIC requirement, no markup to ECO Systems Rent placement to follow post-rehab verification

ECO Systems may initiate capital calls post-transition

Option 2 - Reject Vote #2 and Remain with M1 Homes LLC

M1 Homes remains as manager

No changes to current structure

Financial obligations remain unresolved under the existing framework

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 15th once the voting period ends.

Property Update (06/24/2025):

Governance Results for 13806 Coit Rd:

The Governance Voting results are back for the owner proposed votes.

The first winning vote is:

List Property for Sale

This voting option was declared the winner in Round 1 with 528 token votes.

The voting results can be found on chain here or by searching the application ID: 3090639418

The second winning vote is:

Reject Vote #2 and remain with M1 Homes

This voting option was declared the winner in Round 3 with 676 token votes.

The voting results can be found on chain here or by searching the application ID: 3090642249

Property Update (06/19/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 7 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

GOVERNANCE PROPOSAL: CAPITAL CALL, RENTAL STRATEGY, OR SALE

DAO: Lofty Holding 13806 Coit Rd, Cleveland, OH 44110

Submitted By: [Your Name]

Submission Date: [Insert Date]

Background

The property has 0 occupied units and is currently unfinished. Per Yhome’s last update (5/17/2025), the work is not verified complete, and Yhome is not injecting further funds, but is willing to oversee final completion if contractors are paid.

Financial Status:

Obligation Amount

DAO Net Due from Yhome (positive = owed to DAO) $34,955.02

Aligned Unpaid Bills Due from DAO $1,753.65

DAO OR Cash $0.00

Capital Call Due to Lofty (unpaid obligations) $12,795.57

DAO Net Cash (Capital Call Required) ($49,504.24)

Zestimate: $95,300

Estimated Sales Range: $71,000 – $122,000

Rent Zestimate: $1,888/month

Unit Breakdown: 2-unit conversion completed (not verified)

Contractor Issues: Ongoing; see Yhome documents & invoices

VOTE #1 – CAPITAL CALL OR SALE STRATEGY (Choose One)

Option 1 – Approve Capital Call of $50,000 via EARLDAO

12% APR, interest-only, 1-year balloon. Non-dilutive. Funds used to:

Pay Lofty

Pay Aligned

Reserve remaining balance to finalize work (under M1, Whalec, or ECO oversight)

Option 2 – Approve Capital Call of $50,000 via dilutive equity at $20/share

Issue 2,577 governance tokens offered pro-rata to DAO members. Dilutive.

Option 3 – Pay Only Aligned & Lofty via EARLDAO ($14,549.22)

Pay known third-party balances only. No funds for rehab. Non-dilutive. Sale or migration decision postponed.

Option 4 – List Property for Sale

Instruct Aligned to list the property for sale.

Net proceeds, after estimated 9% broker and closing costs, could range from:

$56,610 (low end: $71,000 × 0.91) ≈ $28.72/token

$111,020 (high end: $122,000 × 0.91) ≈ $56.32/token

Note: Proceeds will first pay off DAO liabilities before any tokenholder returns. If Gruzmarg's work was indeed completed, this could result in net proceeds of $3.60 to $31.21 per token. It is evident from these photos that it is not complete, but I am unsure what percentage of their invoice was done: https://photos.app.goo.gl/kGYEDrzAMpjePFyE8

Option 5 – Reject Proposal

No action taken. Rehab remains unfinished. DAO remains under deficit. No migration or resolution until future vote.

VOTE #2 – PM & SUB-PM STRUCTURE (If Property is Retained)

Only vote on this if DAO does not approve sale.

Option 1 – Migrate to ECO Systems LLC as PM w/ Aligned as Sub-PM (15% PM Fee)

PM Fee: 10% Aligned + 5% ECO

Leasing Fee: 1 full month’s rent

R&M: 10% markup

Option 2 – Migrate to ECO Systems LLC as PM w/ Hemlane as Sub-PM (10% PM Fee)

PM Fee: 10% ECO only

Leasing Fee: $695 or 50% of first month’s rent, whichever is greater

No markup on Repairs & Maintenance

Rent placement post-rehab verification

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC)

Option 3 – Reject Vote #2 and remain with M1 Homes

No change to existing management structure

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, June 24th, once the voting period ends.

Property Update (06/19/2025):

Owner-Proposed Governance Vote for 13806 Coit Rd:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 7 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

GOVERNANCE PROPOSAL: CAPITAL CALL, RENTAL STRATEGY, OR SALE

DAO: Lofty Holding 13806 Coit Rd, Cleveland, OH 44110

Submitted By: [Your Name]

Submission Date: [Insert Date]

Background

The property has 0 occupied units and is currently unfinished. Per Yhome's last update (5/17/2025), the work is not verified complete, and Yhome is not injecting further funds, but is willing to oversee final completion if contractors are paid.

Financial Status:

Obligation Amount

DAO Net Due from Yhome (positive = owed to DAO) $34,955.02

Aligned Unpaid Bills Due from DAO $1,753.65

DAO OR Cash $0.00

Capital Call Due to Lofty (unpaid obligations) $12,795.57

DAO Net Cash (Capital Call Required) ($49,504.24)

Zestimate: $95,300

Estimated Sales Range: $71,000 - $122,000

Rent Zestimate: $1,888/month

Unit Breakdown: 2-unit conversion completed (not verified)

Contractor Issues: Ongoing; see Yhome documents & invoices

VOTE #1 - CAPITAL CALL OR SALE STRATEGY (Choose One)

Option 1 - Approve Capital Call of $50,000 via EARLDAO

12% APR, interest-only, 1-year balloon. Non-dilutive. Funds used to:

Pay Lofty

Pay Aligned

Reserve remaining balance to finalize work (under M1, Whalec, or ECO oversight)

Option 2 - Approve Capital Call of $50,000 via dilutive equity at $20/share

Issue 2,577 governance tokens offered pro-rata to DAO members. Dilutive.

Option 3 - Pay Only Aligned & Lofty via EARLDAO ($14,549.22)

Pay known third-party balances only. No funds for rehab. Non-dilutive. Sale or migration decision postponed.

Option 4 - List Property for Sale

Instruct Aligned to list the property for sale.

Net proceeds, after estimated 9% broker and closing costs, could range from:

$56,610 (low end: $71,000 × 0.91) ≈ $28.72/token

$111,020 (high end: $122,000 × 0.91) ≈ $56.32/token

Note: Proceeds will first pay off DAO liabilities before any tokenholder returns. If Gruzmarg's work was indeed completed, this could result in net proceeds of $3.60 to $31.21 per token. It is evident from these photos that it is not complete, but I am unsure what percentage of their invoice was done: https://photos.app.goo.gl/kGYEDrzAMpjePFyE8

Option 5 - Reject Proposal

No action taken. Rehab remains unfinished. DAO remains under deficit. No migration or resolution until future vote.

VOTE #2 - PM & SUB-PM STRUCTURE (If Property is Retained)

Only vote on this if DAO does not approve sale.

Option 1 - Migrate to ECO Systems LLC as PM w/ Aligned as Sub-PM (15% PM Fee)

PM Fee: 10% Aligned + 5% ECO

Leasing Fee: 1 full month's rent

R&M: 10% markup

Option 2 - Migrate to ECO Systems LLC as PM w/ Hemlane as Sub-PM (10% PM Fee)

PM Fee: 10% ECO only

Leasing Fee: $695 or 50% of first month's rent, whichever is greater

No markup on Repairs & Maintenance

Rent placement post-rehab verification

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC)

Option 3 - Reject Vote #2 and remain with M1 Homes

No change to existing management structure

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, June 24th, once the voting period ends.

Property Update (05/17/2025):

The previous update sent out was for a different property. The corrected update for 13806 Coit Rd is below.

Update from Yhome Nursing LLC (this update is currently being reviewed by the new owner-elected property manager, M1 Homes LLC).

"Dear Investors, while we are navigating a challenging transition, I want to update you on COIT. The process has been lengthy, but we are approaching the finish line. The contractor has claimed that the work is complete; however, when my sub-PM inspected the property, it became clear that the work is not yet finished.

Currently, to avoid further complications, Yhome is not injecting additional funds into any properties. However, I do expect my contractors to be paid for their work. This property cannot be sold on the open market without proper packaging and presenting it to potential investors. Our original plan was to turn it into a cash-generating asset by renting out the two units on Section 8—the only viable option for the area—and then sell.

I am attaching my final bill and the contractor’s invoice for your review. You will also notice that we have been utilizing a security system at this property due to the area and its history. Please note that the property was originally without a furnace and hot water heaters, but it has been transformed into two separate units with two new kitchens and other upgrades.

Yhome is willing to complete the project to ensure the contractor gets paid. This bill reflects the final amount due, including all fees.

Thank you for your understanding."

Documents, photos, and videos provided by Yhome

Property Update (05/17/2025):

The previous update sent out was for a different property. The corrected update for 13806 Coit Rd is below.

Update from Yhome Nursing LLC (this update is currently being reviewed by the new owner-elected property manager, M1 Homes LLC).

"Dear Investors, while we are navigating a challenging transition, I want to update you on COIT. The process has been lengthy, but we are approaching the finish line. The contractor has claimed that the work is complete; however, when my sub-PM inspected the property, it became clear that the work is not yet finished.

Currently, to avoid further complications, Yhome is not injecting additional funds into any properties. However, I do expect my contractors to be paid for their work. This property cannot be sold on the open market without proper packaging and presenting it to potential investors. Our original plan was to turn it into a cash-generating asset by renting out the two units on Section 8-the only viable option for the area-and then sell.

I am attaching my final bill and the contractor's invoice for your review. You will also notice that we have been utilizing a security system at this property due to the area and its history. Please note that the property was originally without a furnace and hot water heaters, but it has been transformed into two separate units with two new kitchens and other upgrades.

Yhome is willing to complete the project to ensure the contractor gets paid. This bill reflects the final amount due, including all fees.

Thank you for your understanding."

Documents, photos, and videos provided by Yhome

Property Update (04/28/2025):

Governance Results:

The Governance Voting results are back for the owner proposed vote to change property managers to M1 Homes LLC.

The winning vote is:

Yes [switch property managers to M1 Homes LLC]

This voting option received 223 / 309 token votes, which is equal to 72% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2960279256

Property Update (04/25/2025):

Owner-Proposed Governance Vote:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 50 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

I recommend that we transition management of 13806 Coit Rd Cleveland OH 44110 to M1 Homes LLC, effective April 30th. M1 Homes is a reputable property management company that owns and manages 36 homes and 3 commercial units in Ohio, as well as 17 homes in Illinois. M1 Homes also manages 8 properties in the Quad City area, as well as another 2 Cleveland homes on Lofty.

This home is currently being managed by Yhome Nursing LLC. If there are any outstanding or unknown loans to Yhome Nursing LLC or Calixte Duffaut, M1 Homes will have the choice to accept management, propose another vote, or withdraw. I am not going to go into detail on why changing Property Management from Yhome Nursing LLC to M1 Homes would be beneficial to owners. M1 Homes already has current management in place who reside in the Cleveland Area.

M1 Homes is an active participant on Lofty and in the Lofty Discord (M1), offering consistent communication and being readily available to answer any questions from investors. M1 Homes' management fees are 10% of gross rent. First month rent to place a tenant. No fees for re-lease and no maintenance upcharge.

The owner making the proposal is the owner of M1 Homes, the property management company being proposed for the transition.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, April 28th, once the voting period ends.

Property Update (04/25/2025):

Owner-Proposed Governance Vote:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 50 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

I recommend that we transition management of 13806 Coit Rd Cleveland OH 44110 to M1 Homes LLC, effective April 30th. M1 Homes is a reputable property management company that owns and manages 36 homes and 3 commercial units in Ohio, as well as 17 homes in Illinois. M1 Homes also manages 8 properties in the Quad City area, as well as another 2 Cleveland homes on Lofty.

This home is currently being managed by Yhome Nursing LLC. If there are any outstanding or unknown loans to Yhome Nursing LLC or Calixte Duffaut, M1 Homes will have the choice to accept management, propose another vote, or withdraw. I am not going to go into detail on why changing Property Management from Yhome Nursing LLC to M1 Homes would be beneficial to owners. M1 Homes already has current management in place who reside in the Cleveland Area.

M1 Homes is an active participant on Lofty and in the Lofty Discord (M1), offering consistent communication and being readily available to answer any questions from investors. M1 Homes' management fees are 10% of gross rent. First month rent to place a tenant. No fees for re-lease and no maintenance upcharge.

The owner making the proposal is the owner of M1 Homes, the property management company being proposed for the transition.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, April 28th, once the voting period ends.

Property Update (02/14/2025):

Cal, the new owner-elected Property Manager with Yhome Nursing LLC, provided an update.

Cal is available in this property's specific Discord channel to answer questions from owners. Join the Lofty investor-only Discord.

"We are pleased to report that we have successfully installed one furnace, allowing us to continue with the ongoing work. During our inspections, we identified some leaks that we are currently addressing.

I understand that this process has taken a bit longer than expected, but we are committed to ensuring everything is done correctly. Additionally, the cold temperatures have hindered our ability to work outside, but we are diligently pushing forward and are almost there.

I will keep you all updated on our progress. Thank you for your patience and support!"

Property Update (12/17/2024):

Cal, the new owner-elected Property Manager with Yhome Nursing LLC, provided an update.

Cal is available in this property's specific Discord channel to answer questions from owners.

"Dear Investors, I wanted to provide an update on the Coit property. Renovations are currently underway and are now 60% complete. We anticipate finishing the project soon. A security system has been installed, and additional measures have been implemented to ensure the property's safety. We will keep you informed about the final details as we progress. Pictures and the property listing will be shared as soon as they are available. Thank you for your patience."

Property Update (11/26/2024):

Cal, with Yhome Nursing LLC, obtained a make-ready estimate of $15,525 for the property.

Cal outlined that the proposed repairs would return the property to its original duplex configuration, which entails reinstalling the stairs.

Furthermore, Cal confirmed that the scope of work includes addressing and resolving all existing city code violations.

The estimate also accounts for the installation of two new hot water tanks and two furnaces to replace those that were stolen.

Cal advised that considering the extensive work required, the estimate represents exceptional value.

Under the Yhome management agreement, the repair costs beyond the current Operating Reserve balance will be paid for via a loan from Yhome with a 6% interest rate, amortized over 15 years.

There are no Operating Reserves for properties managed by Yhome. As a result, owners will begin receiving a portion of daily rent once the property begins cash flowing.

The repairs have commenced. Further updates will be provided once the repairs are completed, including the following documents:

Amortization calculator

Cash flow model

Cash flow projections

Promissory note

Property Update (11/02/2024):

The new owner-elected property manager, Calixte Duffaut with Yhome Nursing LLC, advised they were finally able to get into the home on 11/1 and noted that the property needs a lot of work.

Further updates will be provided on the scope of work necessary to get the property rent-ready.

Photos of Property

Property Update (10/14/2024):

Governance Results:

The Governance Voting results are back for the owner proposed governance vote to take the property off the market and have Yhome Nursing LLC manage the property.

The winning vote is:

Take the property off the market and change management to Yhome Nursing, LLC

This voting option received 640 / 1,004 token votes, which is equal to 63.7% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2364785453

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

Per the management terms, Yhome will front the cost of repairs, and collect a portion of the cash flow to get paid back + 6% interest.

There will be no Operating Reserves for properties managed by Yhome, so owners will begin receiving a portion of the daily rent as soon as positive cash flow comes in. Any future repairs/expenses that come up will simply be paid for by Yhome + 6% interest.

Property Update (10/11/2024):

DOM: 140

The property had 3 showings in the last 7 days.

The property received the following feedback this week:

“Did not tour client decided not to and code wouldn't open box.” Kelly Van Horn, McDowell Homes Real Estate Services (10/10/2024).

“I was unable to show property. The left front door was screwed shut and unable to open it. The right door was boarded up. I've never encountered anything like it. Buyer was disappointed but still interested in seeing property if possible.” Christie Davis, Century 21 (10/6/2024).

The agent recommends to lower the price by $2,000.

The property is currently listed at $89,900.

Property Listing

Property Update (10/11/2024):

DOM: 140

The property had 3 showings in the last 7 days.

The property received the following feedback this week:

"Did not tour client decided not to and code wouldn't open box." Kelly Van Horn, McDowell Homes Real Estate Services (10/10/2024).

"I was unable to show property. The left front door was screwed shut and unable to open it. The right door was boarded up. I've never encountered anything like it. Buyer was disappointed but still interested in seeing property if possible." Christie Davis, Century 21 (10/6/2024).

The agent recommends to lower the price by $2,000.

The property is currently listed at $89,900.

Property Listing

Property Update (10/07/2024):

Owner-Proposed Governance Vote:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 1 token in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

I would like to propose that we take this property off the market and ask Yhome to manage it going forward, so that we can eventually become cash-flowing again, rather than sell at an unnecessarily staggering loss on our original investment.

Yhome will front the cost for repairs for properties they're managing, and collect half of the cash flow to get paid back + 6%. There will be no Operating Reserves for properties managed by Yhome, so owners will begin receiving a portion of the daily rent as soon as positive cash flow comes in. Any future repairs/expenses that come up will simply be paid for by Yhome as well + 6% interest.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, October 14th, once the voting period ends.

Property Update (10/07/2024):

Owner-Proposed Governance Vote:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 1 token in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

I would like to propose that we take this property off the market and ask Yhome to manage it going forward, so that we can eventually become cash-flowing again, rather than sell at an unnecessarily staggering loss on our original investment.

Yhome will front the cost for repairs for properties they're managing, and collect half of the cash flow to get paid back + 6%. There will be no Operating Reserves for properties managed by Yhome, so owners will begin receiving a portion of the daily rent as soon as positive cash flow comes in. Any future repairs/expenses that come up will simply be paid for by Yhome as well + 6% interest.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, October 14th, once the voting period ends.

Property Update (10/06/2024):

DOM: 133

The property had 2 showing in the last 7 days.

Note from agent: "An agent who tried to show the property over the past week was unable to actually get inside the property. The keys worked but the agent claims the property doors were screwed shut or something. I tried contacting Benny to ask what was going on and he did not know why folks were having a hard time. This agent is still interested in going inside and taking a tour once we correct what the issue is."

The agent noted that they have been recommending to lower the purchase price by $2,000 for three weeks now.

This is recommended due to receiving several calls requesting information, but no offers are received.

The property is currently listed at $89,900.

Property Listing

Owners have the ability to propose a governance vote anytime to delist the property for sale and migrate the property to Yhome Nursing LLC.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

If owners elect to migrate to Yhome Nursing LLC, new repair estimates will be obtained, a loan will be provided at a 6% interest rate to complete the repairs, and the property will be rented out again.

Cal manages 9 other properties in the Cleveland & Akron markets, and is the co-owner and Property Manager of the following co-ownership properties on Lofty:

402 N Wild Olive Ave

122 Florida Park Dr

49 Bannbury Ln

27 Pillar Ln

20 Sederholm Path

752 Gelaso St SW

Property Update (09/21/2024):

The property had 3 showings in the last 7 days. Note from agent:

I suggest we lower the purchase price $2K. Coit is a very interesting property in that I get a ton of calls asking about the property but nobody seems to pony up and provide us a offer. We get a ton of calls asking if the owners would accept Seller Financing. I suggest lowering the price and continue fielding phone calls. It only takes one buyer!

The property is currently listed at $89,900.

Property Listing

Property Update (09/07/2024):

The Property Manager provided a new replacement estimate for two exterior doors and two security doors at $3,150 and the Listing Agent's vendor provided an estimate at $2,800.

The PM recommends the lower estimate due to cost-efficiency.

The property had 1 showing, that was a be-back.

The exterior doors were scheduled to be completed on 9/6. The listing agent will confirm that work is completed over the weekend.

The agent is in communication with the be-back lead to get an offer submitted.

Property Listing

Property Update (07/27/2024):

The PM confirmed that the vendor boarded up the property on 7/18.

There were no showings scheduled for the property between 7/12 and 7/18 due to the missing exterior doors and some damaged windows.

A few agents drove by and did not enter the property due to safety concerns.

The agent advised that the general feedback has been that the listing price is too high for a property in this area and the current condition of the property.

The Listing Agent recommends to have the exterior door and a security door installed for the front door and the basement in order for potential buyers to get access and view the property.

The Listing Agent received an estimate of $2,800 to install 2 exterior doors and 2 security doors for both entries.

The agent also recommends to waitlist the property and re-list when the doors are installed.

The PM is also in the process of obtaining an estimate to install the exterior and security doors.

Property Listing

Property Update (07/14/2024):

The agent was informed that the exterior doors have been ripped off and the windows are broken at the property.

The PM dispatched a vendor and received an estimate of $825 to board up the property, which is currently in progress.

The listing agent recommends to reduce the listing price to $89,900 to increase demand.

Property Listing

Property Update (06/29/2024):

DOM: 34 Days

1 Showings (In the last 7 days)

5 Showings (In the past 30 days)

6 Showings in total

List price was just lowered from $109,900 to $99,900 on 6/24/2024 by the listing agent due to lack of demand.

REMARKS: 13722 Coit Road is (Under Contract at $32k since 6/18/2024 after being on the market for 391 Days)

13510 Coit Road is (Under Contract at $65k since 6/19/2024 after being on the market for 278 Days)

13902 Coit Road SOLD for $109,200 at 109,200 on 3/25/2024 after being on the market for 10 days.

With the current condition of the property and frequent break ins, the Listing Agent recommends to review the listing week by week and lowering the price to keep the property on the top of the radar and get it sold quickly.

Property Listing

Property Update (05/24/2024):

Governance Results:

The Governance Voting results are back for the governance vote on which price to list the property for.

The winning vote is:

List the property for $115,000 (Broker's recommendation)

This option was declared the winner in Round 1 with 658 token votes via the Ranked Choice Voting method.

The other voting options were eliminated in Round 1:

List the property for $110,000

2 token votes

List the property for $120,000

72 token votes

List the property for $100,000

6 token

The property will be listed for sale on the MLS and Roofstock at $115,000 and any updates will be provided promptly. If an offer is received, owners will have the ability to vote to accept, deny, or counter the offer.

Property Update (05/20/2024):

Governance Vote:

The governance results are back for the governance vote to either do a Capital Call or sell the property.

The winning vote is:

Sell the property.

This option received 775 / 857 token votes which is equal to 90.4% of the total votes.

Owners will now have the opportunity to vote on the listing price.

The property was originally purchased on 08/15/2022 for $85,000. The HouseCanary Valuation as of March, 2024 is $94,086.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

There’s a property on Coit that sold for $109k back in March. It was listed at $105k but the pics indicate it was in pretty good shape however we know pics can be deceiving. A few other properties sold a little higher but both had hvacs and hot water tanks. I would list 13806 Coit at $115k knowing were probably gonna take a hit during inspections or we might receive offers already discounted to account for the HVAC/Hot Water Tanks.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors on Friday, May 24th once the voting period ends.

Property Update (05/20/2024):

Governance Vote:

The governance results are back for the governance vote to either do a Capital Call or sell the property.

The winning vote is:

Sell the property.

This option received 775 / 857 token votes which is equal to 90.4% of the total votes.

Owners will now have the opportunity to vote on the listing price.

The property was originally purchased on 08/15/2022 for $85,000. The HouseCanary Valuation as of March, 2024 is $94,086.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

There's a property on Coit that sold for $109k back in March. It was listed at $105k but the pics indicate it was in pretty good shape however we know pics can be deceiving. A few other properties sold a little higher but both had hvacs and hot water tanks. I would list 13806 Coit at $115k knowing were probably gonna take a hit during inspections or we might receive offers already discounted to account for the HVAC/Hot Water Tanks.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors on Friday, May 24th once the voting period ends.

Property Update (05/15/2024):

Governance Vote:

Owners will now have the opportunity to vote to do a Capital Call to complete the violation repairs or sell the property outright.

Per the previous update the total cost of repairs to cure the violations (except the electrical outlets) is $19,002 ($5,847 from the first estimate, $3,515 from the second estimate and $10,000 for the hot water tanks and furnaces).

There is recoverable depreciation of $5,521.25 for the stolen furnace claim, but insurance will not send this out until invoice and photos for the new furnace are sent to them. The furnace has not yet been installed due to theft.

The Operating Reserve balance is $103.94.

Owners now have the option to do a Capital Call for $19,500 (includes additional cushion for upcoming insurance & utilities payments), cure the violation repairs, and rent the property out again. Once the furnaces are installed, $5,521.25 in recoverable depreciation would be added to the Operating Reserve. Owners can also choose to sell the property outright. The Property Manager recommends to sell the property due to its location, frequency of break ins, and the amount of violations.

The property was originally purchased on 08/15/2022 for $85,000. The HouseCanary Valuation as of March, 2024 is $94,086.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

There's a property on Coit that sold for $109k back in March. It was listed at $105k but the pics indicate it was in pretty good shape however we know pics can be deceiving. A few other properties sold a little higher but both had hvacs and hot water tanks. I would list 13806 Coit at $115k knowing were probably gonna take a hit during inspections or we might receive offers already discounted to account for the HVAC/Hot Water Tanks.

If the Capital Call option is chosen, an owner of the property or the Universal Lending DAO must be willing buy any unsold tokens if the Capital Call does not fully fund within the 15 day funding period. If an owner does not back the Capital Call within one week of this option being chosen, then the property will be listed for sale.

The terms of past Capital Calls are as follows:

The interest rate paid to owners contributing funds to the capital call will be 13.5%.

When the Operating Reserve is <50% full, half of all net rental income should go to the Operating Reserve, and half to pay off the loan; when the Operating Reserve is >=50% full, 100% of net rental income should be used to pay off the loan.

4 year repayment period

The capital call offer is open for 15 days.

The owner will back any unsold tokens from the capital call.

If a Supermajority is not reached to do a Capital Call, then the property, by default, will be listed for sale on the open market. If this occurs, a separate vote will also be sent to owners to determine the listing price. After the property is listed for sale, owners are still able to propose a governance vote to do a Capital Call and de-list the property for sale if they are willing to back it themselves.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in 13806 Coit Rd on Monday, May 20th once the voting period ends.

Property Update (05/15/2024):

Governance Vote:

Owners will now have the opportunity to vote to do a Capital Call to complete the violation repairs or sell the property outright.

Per the previous update the total cost of repairs to cure the violations (except the electrical outlets) is $19,002 ($5,847 from the first estimate, $3,515 from the second estimate and $10,000 for the hot water tanks and furnaces).

There is recoverable depreciation of $5,521.25 for the stolen furnace claim, but insurance will not send this out until invoice and photos for the new furnace are sent to them. The furnace has not yet been installed due to theft.

The Operating Reserve balance is $103.94.

Owners now have the option to do a Capital Call for $19,500 (includes additional cushion for upcoming insurance & utilities payments), cure the violation repairs, and rent the property out again. Once the furnaces are installed, $5,521.25 in recoverable depreciation would be added to the Operating Reserve. Owners can also choose to sell the property outright. The Property Manager recommends to sell the property due to its location, frequency of break ins, and the amount of violations.

The property was originally purchased on 08/15/2022 for $85,000. The HouseCanary Valuation as of March, 2024 is $94,086.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

There’s a property on Coit that sold for $109k back in March. It was listed at $105k but the pics indicate it was in pretty good shape however we know pics can be deceiving. A few other properties sold a little higher but both had hvacs and hot water tanks. I would list 13806 Coit at $115k knowing were probably gonna take a hit during inspections or we might receive offers already discounted to account for the HVAC/Hot Water Tanks.

If the Capital Call option is chosen, an owner of the property or the Universal Lending DAO must be willing buy any unsold tokens if the Capital Call does not fully fund within the 15 day funding period. If an owner does not back the Capital Call within one week of this option being chosen, then the property will be listed for sale.

The terms of past Capital Calls are as follows:

The interest rate paid to owners contributing funds to the capital call will be 13.5%.

When the Operating Reserve is <50% full, half of all net rental income should go to the Operating Reserve, and half to pay off the loan; when the Operating Reserve is >=50% full, 100% of net rental income should be used to pay off the loan.

4 year repayment period

The capital call offer is open for 15 days.

The owner will back any unsold tokens from the capital call.

If a Supermajority is not reached to do a Capital Call, then the property, by default, will be listed for sale on the open market. If this occurs, a separate vote will also be sent to owners to determine the listing price. After the property is listed for sale, owners are still able to propose a governance vote to do a Capital Call and de-list the property for sale if they are willing to back it themselves.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in 13806 Coit Rd on Monday, May 20th once the voting period ends.

Property Update (05/11/2024):

Per the previous update, the PM has been in the process of obtaining estimates to cure the city violations, and they have experienced a number of delays.

The PM has re-assigned the request for violations repairs to three different vendors to get estimates for repairs.

Two of the vendors accepted the job, and then declined due to the location of the property.

The PM received two estimates to cure the violations.

One estimate totaled $60k and the second estimate totaled $32,318.

The PM confirmed that the drywall, first floor bedroom window, exterior door, interior door, interior steps, and smoke detector repairs on the violations list were already completed in the turn.

The PM confirmed the turn repairs totaling $12,503 were completed. $5,487 from the $60k estimate and $3,515 from the $32k estimate will address all the violations except for the electrical outlets not working.

The PM advised that the hot water heaters and the furnace were stolen and will also need to be installed prior to passing re-inspection and listing the property for rent.

The PM received an estimate of $3,800 to replace two hot water tanks and $6,800 to replace 2 furnace units from Vella.

The total cost of repairs to cure the violations (except the electrical outlets) is $19,002 ($5,847 from the first estimate, $3,515 from the second estimate and $10,000 for the hot water tanks and furnaces).

Great American E&S Insurance Company received notice of a claim on April 16, 2024, reporting the theft of two hot water tanks from the property.

The insurance adjuster inspected the property and confirmed the missing water heaters.

They approved the estimate provided by Vella Property Solutions for $3,800, which represents the replacement cost of the damage.

The policy deductible is $2,500.

A payout of $1,300 has been released for the claim.

Insurance Claim

There is recoverable depreciation of $5,521.25 for the stolen furnace claim, but insurance will not send this out until invoice and photos for the new furnace are sent to them. The furnace has not yet been installed due to theft.

The court hearing for the violations was held on 5/8.

An extension of 6 months was requested to obtain a viable repair estimate to complete the rest of the repairs at the property.

The city granted 90 day extension to have the violation repairs completed.

The attorney fees for the hearing were $150.

The PM is currently working on getting a third repair estimate and an electrical repair estimate for the outlets not working throughout the first and second floor.

The PM recommends to sell the property due to its location, frequency of break ins, and the amount of violations. Owners will have the ability to vote to sell the property or do a Capital Call to cure the violations.

The Operating Reserve balance is currently $103.94.

Property Update (01/27/2024):

Ryze Claims Solutions was assigned to investigate a loss and damage under the Tenant Protection Plan (TPP).

The field adjuster inspected the loss location on December 1, 2023.

The loss was caused by a sewer drain backup due to a prior tenant pouring grease into the basement drain lines.

Mold was noticed on a wall in the basement, but the policy specifically excludes coverage for mold.

The pipes and mold cleanup are not covered under the policy.

Coverage is available for the diagnostic fee to find the clog, hydro jet to clear the blockage, and the camera.

No clean-up invoices were provided, and the gross loss is $1,397.04, with a $500 deductible, resulting in a net loss of $897.04.

Once these funds are received, they will be added to the property's Operating Reserve.

Insurance Claim

Property Update (01/20/2024):

Update 1:

An insurance claim was filed for the property break-in that resulted in damages including forced entry, vandalism, and a missing water heater and furnace.

Insurance Estimate

The Replacement Cost Value of the damage is $6,948.65, while the Actual Cash Value is $5,050.71. The deductible is $2,500.00.

Recoverable Depreciation: $1,897.94

The initial payment issued was for $2,550.71 (Actual Cash Value minus Deductible)

The amount was then disputed and the estimate received for the furnace was submitted to the insurance company to review.

Insurance HVAC Estimate

The estimate was reviewed and the claims specialist provided the following information:

Replacement Cost Value of the damage is $13,132.67, while the Actual Cash Value is $7,611.12. The deductible is $2,500.00.

Recoverable Depreciation: $5,521.55

The insurance company then released a supplemental payment of $2,560.41.

Once the repairs are completed and photos/invoices are provided to the insurance company, a recoverable depreciation payment of $5,521.55 will be issued.

The insurance claims specialist noted that the property does not qualify for Loss of Rents since it was vacant at the time of the loss.

Update 2:

The PM received an estimate amounting to $35,790.80 for the property repairs.

The PM recommended only approving $12,503 of the estimate, which does not include the furnace ($8k each, $16k total), floors ($6,837.80), and car removal ($450)

Repair Estimate

The PM has onboarded a new vendor for the furnaces. The vendor will provide an updated estimate next week.

Additionally, there were a few items on the building complaint that were not included in the turn.

The PM is working to obtain an additional estimate for the missing items.

The PM advised that the court hearing is scheduled for 07/03/2024 and the violations must be cured by then.

The PM has also filed a Tenant Protection Plan (TPP) claim for both property damage and lost rent.

The tenant has a security deposit of $1,095 which will go towards the turn repairs.

The tenant's balance of $4,279 has been sent to a collections agency in an attempt to recoup the funds.

Property Update (11/30/2023):

An insurance claim was filed for the mold and furnace damage at the property caused by a sewer backup.

The Replacement Cost Value of the damage is $11,063.78, while the Actual Cash Value is $9,452.76. The deductible is $2,500.

The payment being issued is for $5,000, which is the sewer back-up limit on the policy.

Insurance Coverage Letter

Insurance Estimate

Photos

Property Update (11/18/2023):

A violation notice was posted by the City for several issues.

The property was cited for several interior and exterior maintenance issues including no functioning toilets, no heat, and no water.

A vendor advised that the toilet & water issues are due to tenant negligence with pouring grease down the drain, which has caused the toilets, sink, and basement to backup.

A Tenant Protection Plan (TPP) claim was subsequently filed in an attempt to cover the damages caused by the tenant.

The new owner-elected Property Manager, HomeRiver Group, did not receive a maintenance request from the tenant for the issues that existed while the previous Property Manager, Northpoint Asset Management, was managing the property.

As a result, CMHA deemed the property uninhabitable and issued emergency moving papers for the delinquent tenant.

The tenant confirmed that they vacated the property.

The PM changed the locks and installed a lockbox.

The PM returned to the property on 11/16 to complete the move-out inspection and found that the property was broken into.

The furnace and hot water tank were stolen from the property.

The PM filed a police report and an insurance claim has been open for the theft incident.

The PM has boarded up the property and is currently working to get multiple repair estimates for the city violations, theft damages, and turn.

The PM is working to obtain multiple estimates for the violations and turn repairs.

The tenant has a security deposit of $1,095 which will go towards the turn repairs.

Building Complaint

Move-out Inspection

Property Update (10/12/2023):

The new owner-elected Property Manager, HomeRiver Group Institutional (HRG), recently took over management of this property via the results of the previous governance vote.

The migration process was delayed due to the previous PM, Northpoint, being initially unwilling to send over necessary information in order for the migration to begin––including tenant ledgers and tenant contact information.

Now that HRG has taken over management, the management fee will be reduced from 7% ($89 minimum) to 5.75% of gross rent. The repair mark-up fee is also now $0, compared to Northpoint's 10% mark-up.

The tenant owes a balance of $4,279.

The PM confirmed the tenant was informed of their balance on 9/28.

A demand notice was posted and the tenant has notified the PM of their NTV (Notice to Vacate) on 11/01.

The PM will attempt to collect the balance and if the tenant does not pay the full amount within 14 days of vacating, the PM will forward the balance to a collections agency.

Property Update (10/12/2023):

The new owner-elected Property Manager, HomeRiver Group Institutional (HRG), recently took over management of this property via the results of the previous governance vote.

The migration process was delayed due to the previous PM, Northpoint, being initially unwilling to send over necessary information in order for the migration to begin--including tenant ledgers and tenant contact information.

Now that HRG has taken over management, the management fee will be reduced from 7% ($89 minimum) to 5.75% of gross rent. The repair mark-up fee is also now $0, compared to Northpoint's 10% mark-up.

The tenant owes a balance of $4,279.

The PM confirmed the tenant was informed of their balance on 9/28.

A demand notice was posted and the tenant has notified the PM of their NTV (Notice to Vacate) on 11/01.

The PM will attempt to collect the balance and if the tenant does not pay the full amount within 14 days of vacating, the PM will forward the balance to a collections agency.

Property Update (08/21/2023):

Owners voted to change Property Managers from Northpoint Asset Management to HomeRiver Group Institutional Services.

Property Update (07/22/2023):

The PM received $4,605 from CMHA for rent back pay for February 2023 through May 2023, and July 2023.

Owners will receive these funds via daily rent starting on August 14th, once July's cash flow begins being paid out.

June's rent was abated by CMHA due to having multiple failed inspections.

The tenant has a balance of $2,841 as of 7/22.

The balance is for 11 months of the tenant's rent portion ($1,914) and abated rent for June.

The PM followed up with the tenant to pay their rent portion.

The tenant stated that they do not feel like they should have to pay rent when they have been paying for repairs out of pocket when they were unable to reach the previous Property Manager.

The PM will continue to attempt to collect rent from the tenant.

The PM does not recommend starting the eviction process as the tenant has been approved to move to another Lofty property, 1339 E 115th St, and CMHA will be paying the majority of the rent.

The PM pulled a Comparative Market Analysis (CMA) for the property and recommends to list the property for rent at $1,100 for private-pay tenants.

Currently the tenant is supplying their own appliances. If Owners choose to install appliances in the property, then CMHA may approve a rent of up to $1,800-$2,000.

CMHA's rent approval and rent portion will depend on the tenant's income.

Property Update (06/26/2023):

The PM has not received the payment from CMHA.

The PM has followed up with CMHA on the payment and confirmation on the amount that will be released.

The PM received the repair invoice from the GC for the inspection abatement repairs.

The repair invoice includes the following services: repairing stress cracks in common halls and the interior stairwell, securing and redirecting the hot water tank flu pipe, replacing a window, painting the bathroom vanity, replacing light outlet covers and installing light switches, installing carbon monoxide and smoke detectors, and replacing floor tiles in specific areas of the bathroom and living room.

The total cost for all the repairs $1,138.50 ($1,035 + 10% PM markup).

Repair Invoice

Property Update (06/17/2023):

The inspection was completed on 6/12.

CMHA confirmed the property passed the inspection.

CMHA advised that they released the rent abatement on 6/16.

The PM is waiting on CMHA to provide the exact amount that will be disbursed, because a portion of the abated rent will not be paid out.

The PM received the invoice from the HVAC vendor for the furnace ($852.12 + 10% markup) and basement sewer clean out ($106.92 + 10% markup). The total repair cost is $1,057.94 ($959.04 + 10% markup).

Furnace Repair Invoice

Basement Sewer Repair Invoice

The PM is still waiting on the invoice from their GC for the remainder of the repairs on the CMHA inspections list. The PM estimates the total to be around $1,000.

Per the previous update, the tenant submitted an application for another Lofty property, 1339 E 115th St.

The PM recommends to approve the tenant if they qualify, because they already had intentions to move out and find a larger home.

Property Update (06/11/2023):

The CMHA re-inspection has been scheduled for Monday, 6/12.

CMHA confirmed that once the property passes inspection, they will release all the backpay rent, minus the abated rent for failed inspections.

CMHA confirmed that rent was abated on 4/1, after 2 failed inspections.

The abated rent will not be paid out.

CMHA will confirm when rent is re-instated following the inspection on 6/12.

The tenant informed the PM that they intend to apply for another Lofty property, 1339 E 115th St.

The tenant advised that they need a larger home to accommodate their larger family of 8.

The PM recommends to approve the tenant if they qualify, because they already had intentions to move out and find a larger home.

Property Update (06/03/2023):

The vendor was on-site on 5/24 and 5/25 to perform the necessary repairs to pass re-inspection with CMHA.

They have successfully completed all the repairs listed in the failed inspections list, except for the furnace.

According to the vendor's advice, the furnace will require replacement.

However, the PM is advocating for the vendor to attempt a repair instead of an immediate replacement.

The aim is to pass the re-inspection with CMHA, receive the abated rent from CMHA, and gain some additional time before ultimately replacing the furnace before winter.

The PM is scheduling a re-inspection with CMHA.

CMHA confirmed that once the property passes inspection, they will release all the backpay rent, minus the abated rent for failed inspections.

CMHA has yet to confirm the amount of rent that was abated.

The tenant advised the PM that they are looking to move as they need more space for the family of 8.

The tenant informed the PM that they are interested in moving to another Lofty property, 1339 E 115th St.

Property Update (05/19/2023):

The Property Manager was finally able to make contact with the tenant with assistance from CMHA to allow the vendor to complete the repairs on the inspection list.

The tenant was ignoring the PM's attempts to reach them via phone, email, and in-person.

The PM received a cancellation notice from CMHA citing inspection violations.

CMHA will not provide assistance effective 5/31.

The PM contacted CMHA to appeal the cancellation because the tenant has not been cooperating for the repairs to be made on the property.

CMHA advised that the tenant is fully prepared to collaborate and granted the PM permission to access the unit in order to address any necessary repairs.

The PM scheduled an appointment with the tenant to complete the repairs over this weekend.

Per the previous update, the failed items include: the furnace is not working, the flu pipe of the water heater needs to be secured and have an upward pitch, the floor covering in multiple areas is separating, the vanity cover in one of the bathrooms is peeling, the wall in the interior stairs and common halls has stress cracks, there are no CO detectors in unit, multiple light fixtures need to be secured, the electrical panel needs spacers, an old outlet needs to be removed, a broken window to be repaired or replaced, and an old furnace needs to be removed.

Failed Inspection Report

The PM will notify CMHA once the repairs have been successfully carried out in order to schedule another inspection for the unit.

The tenant also has an additional repair request for sewer backup in the basement.

The PM will have the vendor assess the severity of sewer backup issue while onsite to address the inspection abatement repairs.

Property Update (04/26/2023):

The Property Manager received the list of compliance repairs from CMHA.

These repairs must be completed in order for CMHA to release rents for February, March, and April.

The failed items include: the furnace is not working, the flu pipe of the water heater needs to be secured and have an upward pitch, the floor covering in multiple areas is separating, the vanity cover in one of the bathrooms is peeling, the wall in the interior stairs and common halls has stress cracks, there are no CO detectors in unit, multiple light fixtures need to be secured, the electrical panel needs spacers, an old outlet needs to be removed, a broken window to be repaired or replaced, and an old furnace needs to be removed.

The PM has scheduled two vendors to get repair estimates for the failed inspection punch-list.

The PM estimates to have the first estimate for review on Friday, 4/28.

Failed Inspection Report

Property Update (04/20/2023):

Per the last update, Cuyahoga Metropolitan Housing Authority (CMHA) has advised that February and March's rent payments will not be distributed in April due to a recent failed inspection.

CMHA sent the Property Manager the list of repairs after multiple reach-out attempts.

The PM advised that the list was empty.

The PM reached out to CMHA again to get the list of repairs for the property.

Property Update (04/04/2023):

Cuyahoga Metropolitan Housing Authority (CMHA) has advised that February and March's rent payments will not be distributed in April due to a recent failed inspection.

The inspection department has been contacted to send over the list of repairs.

The list of repairs has also been requested by the tenant to expedite the process.

Property Update (03/18/2023):

Cuyahoga Metropolitan Housing Authority (CMHA), is in possession of the rents for February and March due to a CMHA change payee.

CMHA advised that the rent for February and March will disbursed in April.

Owners will receive this rent payment (2 full months of rent) via an increase in daily rent in April. This is because, per our previous announcement, daily rent will now be paid out based on the previous month's actual cash flow, instead of the current month's projected cash flow.

Property Update (12/02/2022):

This property has migrated to the new Property Manager, Northpoint Asset Management, based on the previous governance vote. The Property Management fee has been reduced from 8% to 7% of Annual Gross Rents and investors will see an increase in their daily rental income starting today.