Property originally listed for sale on the marketplace by First Premier Properties, LLC.

Click here to learn more about how third parties sell their properties on the Lofty Marketplace.

Owners voted to list the property for sale. See the "Property Updates" section below for more details.

Single Family Home located in Memphis, Tennessee.

Details

• Renovated in March, 2022
  • New roof, new kitchen, new bathroom, new flooring, and more. View all renovations here
• Large 2 bedroom home (1,515 sqft) with living room, office space, and large family room with fireplace
• Huge eat-in kitchen overlooking family room
• Built in 1958
• View Operating Reserve balance chart
• View property transaction data

Property Management and Insurance

• Managed by HomeRiver Group Memphis
• Insurance Policy through Obie Insurance

Occupancy Status

• Vacant

Location Data

• 1/5 Neighborhood Rating on Roofstock
• "C" Rating for Zip Code on Niche

Due Diligence Documents

• HouseCanary Property Valuation Report
• Inspection Report
• Inspection Report Repairs
• Renovations and Updates
• Purchase Agreement
• Operating Agreement
• Closing Statement
• Property Deed
• View All Documents

Property Updates

• Property Update (02/08/2024):

  • Governance results:
  • The Governance Voting results are back for the vote to either accept, counter, or deny the buyer's offer of $70,000. Owners also had the option to de-list the property and do a Capital Call to make repairs and rent the property out again.
  • The winning vote is:
  • Counter at $80,000
  • This option was declared the winner in round 6 with 1,000 token votes via the Ranked Choice Voting method.
  • The broker reached out to the buyer's agent and advised the following (word-for-word) via email:
  • Buyer says $72k is their max (per their agent)
  • Based on the results of the Governance Vote, the second place vote was to accept the offer of $70,000.
  • As a result, the buyer's offer of $72,000 has been accepted.
  • The remaining voting options were eliminated in the following rounds:
  • Round 1:
  • Deny the offer and continue listing the property for sale
  • 20 token votes
  • Round 2:
  • Counter at $71,000
  • 29 token votes
  • Round 3:
  • Counter at $75,000
  • 34 token votes
  • Round 4:
  • De-list the property and do a capital call or loan for $19,000 to complete the turn repairs, pay unpaid bills, and rent the property out again. An Owner must agree to make the capital call or provide the loan.
  • 250 token votes
  • Round 5:
  • Accept the offer of $70,000
  • 491 token votes
  • The closing process will begin, and the broker will reach back out with any new updates.

• Property Update (02/01/2024):

  • Governance Vote for 1848 Baldwin Ave:
  • The broker received a cash offer today, which can be viewed below:
  • Hi
  • We got an offer at $70K on this asset.
  • Cash, no inspection or financing contingencies...will close in 10 days.
  • They will also pay $500 towards the sellers attorney fees.
  • Seller will have their share of the property taxes plus the 6% commission.
  • No repairs or any other contingencies.
  • When the broker was asked if he'd recommend countering, he replied:
  • You could counter them $1500 or so.
  • The broker advised to get back to the buyer with an answer by Monday, February 5th.
  • The property was originally purchased for $103,750 in April, 2022.
  • The latest HouseCanary valuation report values the property at $96,757.
  • Property taxes were paid on 01/17, and there are currently no outstanding property taxes due.
  • If owners to accept the offer of $70,000, the estimated price per token is calculated below:
  • Purchase price: $70,000
  • Broker commission (6%): $4,200
  • Estimated closing costs: $2,000
  • Unpaid bills (Utilities & Landscaping): $947.73
  • Total price: $62,852.27
  • The estimated token price based on 2,359 total tokens is $26.64.
  • Owners have the ability to back a Capital Call or a provide a loan of $21,000 to complete the turn repairs, pay unpaid bills, and rent the property out again.
  • The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all investors in 1848 Baldwin Ave on Monday, February 5th once the voting period ends.

• Property Update (01/03/2024):

  • The broker advised the highest offer they have on the property is for $53,000.
  • This offer is below the lowest available sale option of $69,900 in the previous governance vote.
  • The property is currently listed at $99,900.
  • The broker suggested to drop the price to $69,900. They advised that it's only a 2 bedroom home, which is hard to rent, and not in the best area, so it won't sell at its current price point.
  • Owners have the ability to propose a Capital Call or a loan of $19,400 to complete the turn repairs and rent the property out again.

• Property Update (11/20/2023):

  • The tenant had a Surety Bond of $2,250 with Rhino in lieu of a Security Deposit.
  • The PM filed a claim with Rhino and they approved a payout of $2,250 for unpaid rent.
  • The total funds of $2,088.09 (PM fee deducted) have been added to the Operating Reserve, and will be disbursed to owners once the property has been sold, per the prior governance vote.
  • Owners have the ability to propose a Capital Call or a loan of $19,400 to turn the property and rent it out again.

• Property Update (11/20/2023):

  • Governance results:
  • The Governance Voting results are back for the vote on the price the property will be listed for sale for.
  • The winning vote is:
  • List the property for $99,900
  • This option was declared the winner in round 1 with 495 votes via the Ranked Choice Voting method.
  • The other options were eliminated in Round 1:
  • $79,900 (Broker's recommendation)
  • 166 votes
  • $89,900
  • 29 votes
  • $84,900
  • 22 votes
  • The remaining voting options had no 1st vote preferences.

The broker, Tyler Tapley, will list the property for sale at $99,900.

• Property Update (11/08/2023):

  • Governance Vote:
  • The governance voting results are back for the vote to either do a Capital Call or list the property for sale on the open market.
  • The winning vote is:
  • Sell the property
  • This voting option received 717 out of 1,087 votes, which is equal to 65.9% of the total votes.
  • Owners will now have the opportunity to vote on the listing price.
  • Per the previous governance vote, A local Memphis broker, Tyler Tapley, took a video of the property provided the following feedback after visiting the property this week:
  • I’d list this for $79900
  • It probably will sell for less. Buyers will prefer a 3 or 4 bedroom.
  • It is just going to be hard to sell due to it being 2 bedrooms. The driveway isn't in great shape...you could "dress it up" but there is a high degree of vandalism and it could be vandalized if you fix it up.
  • It is a high crime area.
  • The DAO LLC owes $4,683 in unpaid bills, which will be deducted from the final sales price.
  • The property was originally purchased for $103,750 in April, 2022.
  • The latest HouseCanary valuation report values the property at $117,924.
  • The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in 1848 Baldwin Ave on Monday, November 20th once the voting period ends.

• Property Update (11/08/2023):

  • Governance Vote:
  • Owners will now have the opportunity to vote to do a Capital Call for this property or list it for sale on the open market.
  • Per the previous update, the property requires extensive repairs in order to be turned and rented to a new tenant.
  • The PM received multiple estimates for each repair and has included the least expensive estimates they believe will allow the property to be rented successfully, without sacrificing on quality.  - The total repair cost is $16,225 and the unpaid bills total $4,683. After adding on a cushion of $550 for upcoming monthly utility payments while the property is vacant, the total required funds are $21,450.
  • A local Memphis broker, Tyler Tapley, took a video of the property provided the following feedback after visiting the property this week:
  • I’d list this for $79900
  • It probably will sell for less. Buyers will prefer a 3 or 4 bedroom.
  • It is just going to be hard to sell due to it being 2 bedrooms. The driveway isn't in great shape...you could "dress it up" but there is a high degree of vandalism and it could be vandalized if you fix it up.
  • It is a high crime area.
  • An owner with the following wallet address has offered to back a capital call for the property. This owner holds 12 tokens in this property.
  • The loan agreement can be viewed here, and a summary of the terms can be viewed below.
  • 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. The owner will back any unsold tokens from the capital call.
  • Owners can now vote to do the capital call, or list the property for sale.
  • The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in 1848 Baldwin Ave on Monday, November 13th once the voting period ends.

• Property Update (10/07/2023):

  • Update 1:
  • The PM confirmed they regained possession of the property this past week.
  • A move-out inspection was conducted and revealed the following issues:
  • Front/Back Landscaping: Requires clean up/trash removal, cutting, shrub trimming, vegetation removal from house. Trees need to be trimmed away from the house.
  • Mailbox is leaning and needs new numbers.
  • Bedroom 1: Flooring is damaged, outlet repairs, walls need repainting, & replace blinds. Bedroom 2: Carpet needs shampooing, light bulb replacement, walls need painting.
  • Bedroom 3: Carpet needs shampooing; carpet at entrance needs repair, walls need painting.
  • Dining Room: Floor tiles are damaged, and walls/baseboards need painting.
  • Laundry Room: Floors are damaged.
  • Kitchen: Walls need painting.
  • Living Room: Floor tiles are damaged; subfloors need repair, walls and ceilings need paint, replace blinds.
  • Gate in the carport needs painting.
  • Driveway is badly cracked; trip hazard.
  • Light inside side storage is needed.
  • HVAC requires a new filter, HWT is leaking in the drip pan.
  • Move-out Inspection
  • The repair estimate is $4,222.
  • The PM confirmed that $650 of the tenant's Surety Bond will go towards the repairs, making the total cost of turn repairs $3,572.
  • The PM advised that the paint & floor issues were not the result of wear and tear from the current tenant, and were in sub-par condition at move-in, so the tenant cannot be charged for these additional repairs.
  • Repair Estimate
  • The PM is in the process of obtaining a second repair estimate.
  • Update 2:
  • The PM advised that the washer is leaking.
  • A plumber performed an inspection & used a camera to inspect the drain line.
  • They found that water was accumulating and causing a blockage at the 13-foot mark in the laundry room - and marked this with tape for reference.
  • They recommend a targeted drain line repair at this spot. No other plumbing issues were identified elsewhere in the home.
  • The total estimate cost of repairs is $3,550, and includes the following steps:
  • Prepare the interior for demolition by covering it with Ramboard and plastic wrap.
  • Temporarily remove the washer and dryer from the work area.
  • Excavate approximately 5 feet of the drain line, starting at the 13-foot mark identified earlier.
  • Perform a targeted repair on this 5-foot section of the drain line, replacing it with new Schedule 40 PVC.
  • If it turns out that more than 5 feet of the drain line needs replacement, work will pause to provide reasoning and an additional cost estimate.
  • Test the newly installed drain line to ensure it's functioning correctly.
  • Fill the excavated trench back in with the existing dirt.
  • Finish by smoothing out the area with concrete.
  • This plan outlines a focused repair on a specific section of the drain line, along with contingencies for any unexpected issues.
  • Estimate 1
  • The PM received a second estimate for $4,000.
  • Estimate 2
  • The scope of work includes breaking the concrete, replacing a five foot section on broken sewer pipe, and re-pouring the concrete.
  • The PM is in the process of investigating this further & will obtain another estimate.
  • Repair Photos
  • Update 3:
  • The PM advised that the lights dim when the appliances are in use.
  • An electrician was dispatched and they found that the meter box is old and worn out, specifically where the meter plugs into it.
  • They recommend to replace the service and breaker box as soon as possible.
  • Additionally, the old fuse box is outdated and also needs an upgrade.
  • The PM advised that this is unsafe and a fire hazard.
  • The total cost to upgrade the service and breaker box is $2,800.
  • Estimate 1
  • A second estimate was received totaling $4,500.
  • Estimate 2
  • The scope of work includes replacing the outside service and combining the three breaker panels inside into one new breaker panel.
  • The vendor noted a replacement of the service is urgently required, however it won't address the issue with non-functional receptacles inside the home.
  • The vendor stated he believes replacing all the receptacles inside the property will most likely resolve that issue and will cost an additional $1,500.
  • The PM is in the process of investigating this further & will obtain another estimate.
  • Repair Photos
  • Update 4:
  • An HVAC vendor visited the property and advised the furnace, coil, condenser, and all duct work in the attic needs to be removed and replaced.
  • An estimate was received totaling $13,000.
  • The repair estimate scope of work includes:
  • Installation of New Sure Comfort 3.5 ton condensing unit, New main 220V whip and disconnect box, Reconnect 24V wire, Repair/replace cooper line set & supply and return plenum.
  • Charge unit with 410A freon
  • Install new sure comfort 3.5 ton SEER 14, R-410A cased a-coil, New PVC drain tape & seal all joints.
  • Install new sure comfort 3.5 ton SEER 14 natural gas furnace. new gas line & shut-off new filter base & filter, t-stat, connect main 120V & 24V wiring.
  • Install 3.5 tons of flex supply duct from supply plenum to each register.
  • Repair/replace return duct.
  • Add supply & return flex duct, boots, registers, air-tight takeoffs, and grilles to built-on 20x25 room.
  • All Sure Comfort Equipment comes with a 10 year parts warranty.
  • The PM is in the process of obtaining an additional estimate.
  • Repair Photos

• Property Update (08/18/2023):

  • The PM confirmed possession of the property was granted in court.
  • The writ can be filed on 8/24.
  • Once the writ is filed, it can take a few weeks for the sheriff to schedule the move-out.

• Property Update (08/12/2023):

  • The tenant owes a balance of $3,155.88.
  • The PM confirmed the eviction hearing is scheduled for 8/14.

• Property Update (08/02/2023):

  • The tenant currently owes a balance of $1,620.93.
  • The tenant has made no communication attempts.
  • The PM completed a vacancy check and confirmed the tenant is still residing at the property.
  • The PM confirmed the eviction has been filed with the legal team.
  • If the tenant pays off their balance in full, the eviction will be cancelled.

• Property Update (05/04/2023):

  • The field inspector completed a routine inspection and noticed that the flooring in the laundry room was soft.
  • A vendor was dispatched and they noted that the laundry room subfloor is weak, with tape holding some parts of the floor down and several areas coming up.
  • The vendor suggests replacing all the LVP and the subfloor with new flooring, which would cost $4,660.
  • Alternatively, the PM suggested they can replace only the kitchen/laundry subfloor for $2,290, but it will not match the rest of the house. The PM recommends this less expensive option, as the Operating Reserve is currently depleted.
  • The PM believes that the floor damages may be related to the leak damage on the carport per the update on 02/03/2023.
  • Pictures of Floor
  • The Insurance adjuster approved the floor repairs under the insurance claim.
  • The adjuster approved a supplemental payment of $4,194 to replace the flooring and subfloor, after depreciation.
  • The payment will be mailed and the flooring repairs will be approved once the check is received.
  • The additional funds received from the Insurance Payout will be added to the Operating Reserve.
  • Insurance Claim Approval

• Property Update (03/24/2023):

  • The new tenant moved in today, 3/24.
  • The tenant signed a 12-month lease at $1,125, a $130 increase from the previous lease of $995.
  • The tenant signed up for a Surety Bond in lieu of a Security Deposit.
  • The Surety Bond is for $2,250.
  • The tenant will be responsible for all utilities and lawncare.
  • The tenant placement fee is $600 and will be deducted from March's rent.
  • The Lease Agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

• Property Update (03/21/2023):

  • The PM has approved a rental application with a move-in date of 3/24.
  • The application is for a 12-month lease at $1,125.
  • The PM is waiting for the applicant to pay the Security Deposit.
  • Additionally, the tenant is requesting minor repairs including fence repair, broken doorknob replacement, replacement of broken blinds, and final cleaning before moving in.
  • The cost of repairs is $450.
  • The Operating Reserve balance after the $450 in repairs and $104.89 in unpaid bills is $751.96.

• Property Update (02/22/2023):

  • The make ready has been completed and the PM will complete a quality control inspection this week.
  • The leasing broker will start pre-listing the property $1,125 for a one-year lease and $1,075 less for a two-year lease.
  • If no applications are received within two weeks, the price will be reduced to $1,075 for a 1 year lease.
  • Comparable properties in the area are renting for $895 - $1,150.00 per month.
  • Comps:
  • 1863 Baldwin Rd: 3 bed / 1.5 bath, 1,593 sf, $1,150 rent
  • 1817 Baldwin Rd: 4 bed / 2 bath, 2,000 sf, $1095 rent
  • 4231 Coventry Ave: 3 bed / 1.5 bath, 985 sf, $895 rent
  • 2160 Pamela Dr: 4 bed / 1 bath, 1,472 sf, $975 rent
  • 4019 Ridgedale St: 3 bed / 1.5 bath, 1,380 sf $1,125 rent

• Property Update (02/03/2023):

  • The plumbing line was repaired for $750.
  • The estimate to replace the damaged carport is $2,500.
  • The insurance adjuster has approved the claim and a payout of $2,267.38.
  • The estimated replacement cost is $3,499.72.
  • After deducting a non-recoverable depreciation of $232.34 and $1,000 deductible, the net amount payable is $2,267.38.
  • $982.62 will be deducted from the Maintenance Reserve for the repair.
  • Repair Invoice
  • Insurance Claim

• Property Update (02/02/2023):

  • The PM was onsite and found that the ceiling on the exterior side of the front door had collapsed.
  • The PM believes this is a result of a plumbing line.
  • The PM is working mitigate the issue and an insurance claim has been filed.
  • The policy deductible is $1,000.
  • Repair Pictures

• Property Update (01/20/2023):

  • The eviction is completed and the property is now vacant.
  • The PM completed a move-out inspection and provided an estimate for the turn services.
  • The scope of work for a move-out includes painting, drywall repair, removing lights stuck to the ceiling, replacing broken blinds, replacing air vents, replacing a deadbolt on the exterior door, performing general maintenance such as replacing smoke detector batteries, caulk the tub, replace toilet seats, tightening doorknobs and cabinet knobs, and replacing any blown out light bulbs.
  • The work also includes cleaning after turnover, carpet cleaning, and exterior repairs such as redoing the garage ceiling with sheetrock, mud and sand new sheetrock, and painting the garage ceiling.
  • The total cost of repairs is $6,193.25.
  • The tenant had a Security Deposit of $500 and this will be applied towards the repair costs.
  • The PM will bill back the tenant for $2,700 of the turn repairs and the outstanding rent balance.
  • The tenant will be sent to collections if they do not pay their balance within 30-days.

• Property Update (12/16/2022):

  • Property possession granted to owners by courts on 12/5
  • Tenant still occupying property as of 12/16
  • Writ of possession filed with court to remove tenant

• Property Update (12/06/2022):

  • Property Manager filed eviction on 9/27 due to tenant delinquency and non-response to Cash for Keys offer
  • Possession of property granted by courts
  • Property Manager will file writ on 12/10 if tenant is still occupying property

• Property Update (11/18/2022):

  • Property Manager filed eviction on 9/27 due to tenant delinquency and non-response to Cash for Keys offer
  • Waiting on hearing date for eviction case
  • Will provide update once hearing date is received

• Property Update (09/27/2022):

  • Property Manager offered tenant Cash for Keys but received no response
  • PM will proceed with filing eviction
  • Evictions in Memphis typically take 2-3 months to complete

• Property Update (09/22/2022):

  • Tenant has not paid September rent and currently has balance of $2,378 ($1,985 in unpaid rent plus late fees)
  • Tenant paid June rent and $1,000 in August, but PM has not received payment for July
  • Automated governance survey recommends offering tenant Cash for Keys
  • PM is also recommending Cash for Keys followed by eviction as last resort
  • PM will offer tenant tiered Cash for Keys options: $995 to move out in 7 days, $498 to move out in 14 days, $250 to move out in 21 days

• Property Update (08/18/2022):

  • The Property Management fees have been reduced to 5.7% of gross rents due to a new National Partnership Agreement with the Property Manager, HomeRiver Group.