Multifamily Investment Property
N. Berclair Road,
Memphis, TN 38122
1br: 8 | 2br: 22
1ba: 8 | 1.5ba: 22
600-825ft2 units
1,455,000
Purchase Price
9.46% – 18.93
Avg. Annual Return
Property Summary
Berclair is a quite 30 unit C+ to B- multifamily property located in a great area of Memphis. It is strategically located across the street from a small neighborhood fire station with plenty of restaurants and shops nearby providing plenty of renter traffic. The demand in this area has kept the building virtually 100% occupied.
Investment Details
Purchase Price$1,455,000
Year Built 1973
Cap Rate 8%
Occupancy100%
Monthly Rent$17,040
Property Taxes $16,772
Insurance $12,500
Management Fee8%
Area Description
Berclair median real estate price is $253,328, which is more expensive than 90.0% of the neighborhoods in Tennessee and 66.1% of the neighborhoods in the U.S. The average rental price in Berclair is currently $1,060 and the average rental cost in this neighborhood is higher than 77.7% of the neighborhoods in Tennessee. Berclair is a suburban neighborhood (based on population density) located in Memphis, Tennessee. Berclair real estate is primarily made up of medium sized (three or four bedroom) to large (four, five or more bedroom) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is owner occupied.
Investment Options
Cash Purchase Avg. Annual Return
Seller Financing Avg. Annual Return
Bank Financing Avg. Annual Return
Joint Venture (Bank) Avg. Annual Return
Joint Venture (Cash) Avg. Annual Return
Average Annual Return 9.46%
Monthly Cash Flow $11,195
Down Payment $1,575,000
Investment Summary: Investors purchase a property from OCG with all cash, fully renovated with a tenant and property management in place for a turn-key investment. Investor owns the property 100% with no split with OCG. The property is already rented and creating monthly cash flow for the investor.
| ESTIMATED MARKET VALUE (8% CAP) | $1,679,176 | $1,679,176 | $1,737,281 | $1,797,285 | $1,859,246 | $1,923,227 | $1,989,292 | $2,057,506 |
| PURCHASE PRICE | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 |
| MONTHLY | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 | YEAR 7 | |
| RENTAL REVENUE | $18,705 | $224,460 | $231,194 | $238,130 | $245,274 | $252,632 | $260,211 | $268,017 |
| Vacancy Allowance (5%) | $935 | $11,223 | $11,560 | $11,906 | $12,264 | $12,632 | $13,011 | $13,401 |
| GROSS RENTAL REVENUE | $17,770 | $213,237 | $219,634 | $226,223 | $233,010 | $240,000 | $247,200 | $254,616 |
| OPERATIONAL EXPENSES | ||||||||
| Property Management (8%) | $1,422 | $17,059 | $17,571 | $18,098 | $18,641 | $19,200 | $19,776 | $20,369 |
| Property Taxes | $1,357 | $16,284 | $16,610 | $16,942 | $17,281 | $17,626 | $17,979 | $18,338 |
| Insurance | $1,042 | $12,500 | $12,750 | $13,005 | $13,265 | $13,530 | $13,801 | $14,077 |
| Lawn Maintenance | $200 | $2,400 | $2,448 | $2,497 | $2,547 | $2,598 | $2,650 | $2,703 |
| Utilities | $1,055 | $12,660 | $12,913 | $13,171 | $13,435 | $13,704 | $13,978 | $14,257 |
| Repairs Allowance | $1,500 | $18,000 | $18,360 | $18,727 | $19,102 | $19,484 | $19,873 | $20,271 |
| TOTAL OPERATING EXPENSES | $6,575 | $78,903 | $80,652 | $82,440 | $84,270 | $86,142 | $88,057 | $90,016 |
| NET INCOME | $11,195 | $134,334 | $138,983 | $143,783 | $148,740 | $153,858 | $159,143 | $164,600 |
| CAP RATE | 8.53% | 8.53% | 8.82% | 9.13% | 9.44% | 9.77% | 10.10% | 10.45% |
| CASH ON CASH RETURN | 8.53% | 8.53% | 8.82% | 9.13% | 9.44% | 9.77% | 10.10% | 10.45% |
| AVERAGE ANNUAL RETURN | 8.53% | 8.53% | 8.68% | 8.83% | 8.98% | 9.14% | 9.30% | 9.46% |
| OPERATING EXPENSE RATIO | 35.15% | 35.15% | 34.88% | 34.62% | 34.36% | 34.10% | 33.84% | 33.59% |
| RENTAL INCREASE | 103% | |||||||
| EXPENSE INCREASE | 102% | |||||||
| APPRECIATION RATE | 8% CAP RATE |
Average Annual Return 10.88%
Monthly Cash Flow $5,927
Down Payment $1,023,750
Investment Summary: Investors purchase a property from OCG with 50% – 65% down, fully renovated with a tenant and property management in place for a turn-key investment. Investor owns the property 100% with no split with OCG. OCG acts as the lender and loans the additional 35% – 50% of the purchase price to the investor for 7 years at 6% – 8% depending upon the investment. The loan is amortized over 15 years so principal is being paid down as well on the loan. A balloon payment at the end of 7 years will be required to pay off the lender, however with a 15 year amortized loan the balloon payment is paid down by almost half of the original loan making the payoff much easier to afford.
| ESTIMATED MARKET VALUE (8% CAP) | $1,679,176 | $1,679,176 | $1,737,281 | $1,797,285 | $1,859,246 | $1,923,227 | $1,989,292 | $2,057,506 |
| PURCHASE PRICE | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 |
| DOWN PAYMENT (65%) | $1,023,750 | $1,023,750 | $1,023,750 | $1,023,750 | $1,023,750 | $1,023,750 | $1,023,750 | $1,023,750 |
| MONTHLY | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 | YEAR 7 | |
| RENTAL REVENUE | $18,705 | $224,460 | $231,194 | $238,130 | $245,274 | $252,632 | $260,211 | $268,017 |
| Vacancy Allowance (5%) | $935 | $11,223 | $11,560 | $11,906 | $12,264 | $12,632 | $13,011 | $13,401 |
| GROSS RENTAL REVENUE | $17,770 | $213,237 | $219,634 | $226,223 | $233,010 | $240,000 | $247,200 | $254,616 |
| OPERATIONAL EXPENSES | ||||||||
| Property Management (8%) | $1,422 | $17,059 | $17,571 | $18,098 | $18,641 | $19,200 | $19,776 | $20,369 |
| Property Taxes | $1,357 | $16,284 | $16,610 | $16,942 | $17,281 | $17,626 | $17,979 | $18,338 |
| Insurance | $1,042 | $12,500 | $12,750 | $13,005 | $13,265 | $13,530 | $13,801 | $14,077 |
| Lawn Maintenance | $200 | $2,400 | $2,448 | $2,497 | $2,547 | $2,598 | $2,650 | $2,703 |
| Utilities | $1,055 | $12,660 | $12,913 | $13,171 | $13,435 | $13,704 | $13,978 | $14,257 |
| Repairs Allowance | $1,500 | $18,000 | $18,360 | $18,727 | $19,102 | $19,484 | $19,873 | $20,271 |
| TOTAL OPERATING EXPENSES | $6,575 | $78,903 | $80,652 | $82,440 | $84,270 | $86,142 | $88,057 | $90,016 |
| NET INCOME | $11,195 | $134,334 | $138,983 | $143,783 | $148,740 | $153,858 | $159,143 | $164,600 |
| LOAN PAYMENT | $5,268 | $63,216 | $63,216 | $63,216 | $63,216 | $63,216 | $63,216 | $63,216 |
| NET CASH FLOW | $5,927 | $71,118 | $75,767 | $80,567 | $85,524 | $90,642 | $95,927 | $101,384 |
| LOAN BALANCE | $551,250 | $551,250 | $531,417 | $509,938 | $486,676 | $461,483 | $434,199 | $404,651 |
| PRINCIPAL REDUCTION | $1,653 | $19,833 | $21,479 | $23,262 | $25,193 | $27,284 | $29,548 | $32,001 |
| END OF YEAR LOAN BALANCE | $549,597 | $531,417 | $509,938 | $486,676 | $461,483 | $434,199 | $404,651 | $372,650 |
| CAP RATE | 8.53% | 8.53% | 8.82% | 9.13% | 9.44% | 9.77% | 10.10% | 10.45% |
| CASH ON CASH RETURN | 6.95% | 6.95% | 7.40% | 7.87% | 8.35% | 8.85% | 9.37% | 9.90% |
| PRINCIPAL REDUCTION RETURN | 1.94% | 1.94% | 2.10% | 2.27% | 2.46% | 2.67% | 2.89% | 3.13% |
| TOTAL RETURN ON INVESTMENT | 8.88% | 8.88% | 9.50% | 10.14% | 10.81% | 11.52% | 12.26% | 13.03% |
| AVERAGE ANNUAL RETURN | 8.88% | 8.88% | 9.19% | 9.41% | 9.83% | 10.17% | 10.52% | 10.88% |
| OPERATING EXPENSE RATIO | 35.15% | 35.15% | 34.88% | 34.62% | 34.36% | 34.10% | 33.84% | 33.59% |
| RENTAL INCREASE | 103% | |||||||
| EXPENSE INCREASE | 102% | |||||||
| APPRECIATION RATE | 8% CAP RATE | |||||||
| INTEREST RATE | 8% | |||||||
| LOAN TERM | 7 YEARS | |||||||
| AMORTIZATION | 15 YEARS | |||||||
| LOAN BALLOON | $344,257 |
Average Annual Return 18.93%
Monthly Cash Flow $5,358
Down Payment $551,250
Investment Summary: Investor purchases a property from OCG with 35% – 50% down, fully renovated with a tenant and property management in place for a turn-key investment. Investor owns the property 100% with no split with OCG. The investor qualifies for a bank loan for the remaining purchase price which typically is a 25 year fixed rate loan at a 4.5% – 5% interest rate. This strategy is great for long term wealth building.
| ESTIMATED MARKET VALUE | $1,679,176 | $1,679,176 | $1,737,281 | $1,797,285 | $1,859,246 | $1,923,227 | $1,989,292 | $2,057,506 |
| PURCHASE PRICE | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 | $1,575,000 |
| DOWN PAYMENT (35%) | $551,250 | $551,250 | $551,250 | $551,250 | $551,250 | $551,250 | $551,250 | $551,250 |
| MONTHLY | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 | YEAR 7 | |
| RENTAL REVENUE | $18,705 | $224,460 | $231,194 | $238,130 | $245,274 | $252,632 | $260,211 | $268,017 |
| Vacancy Allowance (5%) | $935 | $11,223 | $11,560 | $11,906 | $12,264 | $12,632 | $13,011 | $13,401 |
| GROSS RENTAL REVENUE | $17,770 | $213,237 | $219,634 | $226,223 | $233,010 | $240,000 | $247,200 | $254,616 |
| OPERATIONAL EXPENSES | ||||||||
| Property Management (8%) | $1,422 | $17,059 | $17,571 | $18,098 | $18,641 | $19,200 | $19,776 | $20,369 |
| Property Taxes | $1,357 | $16,284 | $16,610 | $16,942 | $17,281 | $17,626 | $17,979 | $18,338 |
| Insurance | $1,042 | $12,500 | $12,750 | $13,005 | $13,265 | $13,530 | $13,801 | $14,077 |
| Lawn Maintenance | $200 | $2,400 | $2,448 | $2,497 | $2,547 | $2,598 | $2,650 | $2,703 |
| Utilities | $1,055 | $12,660 | $12,913 | $13,171 | $13,435 | $13,704 | $13,978 | $14,257 |
| Repairs Allowance | $1,500 | $18,000 | $18,360 | $18,727 | $19,102 | $19,484 | $19,873 | $20,271 |
| TOTAL OPERATING EXPENSES | $6,575 | $78,903 | $80,652 | $82,440 | $84,270 | $86,142 | $88,057 | $90,016 |
| NET INCOME | $11,195 | $134,334 | $138,983 | $143,783 | $148,740 | $153,858 | $159,143 | $164,600 |
| LOAN PAYMENT | $5,837 | $70,044 | $70,044 | $70,044 | $70,044 | $70,044 | $70,044 | $70,044 |
| NET CASH FLOW | $5,358 | $64,290 | $68,939 | $73,739 | $78,696 | $83,814 | $89,099 | $94,556 |
| LOAN BALANCE | $1,023,750 | $1,023,750 | $1,001,867 | $978,921 | $954,861 | $929,633 | $903,181 | $875,444 |
| PRINCIPAL REDUCTION | $1,824 | $21,883 | $22,946 | $24,060 | $25,228 | $26,452 | $27,737 | $29,083 |
| END OF YEAR LOAN BALANCE | $1,021,926 | $1,001,867 | $978,921 | $954,861 | $929,633 | $903,181 | $875,444 | $846,361 |
| CAP RATE | 8.53% | 8.53% | 8.82% | 9.13% | 9.44% | 9.77% | 10.10% | 10.45% |
| CASH ON CASH RETURN | 11.66% | 11.66% | 12.51% | 13.38% | 14.28% | 15.20% | 16.16% | 17.15% |
| PRINCIPAL REDUCTION RETURN | 3.97% | 3.97% | 4.16% | 4.36% | 4.58% | 4.80% | 5.03% | 5.28% |
| TOTAL RETURN ON INVESTMENT | 15.63% | 15.63% | 16.67% | 17.74% | 18.85% | 20.00% | 21.19% | 22.43% |
| AVERAGE ANNUAL RETURN | 15.63% | 15.63% | 16.15% | 16.51% | 17.22% | 17.78% | 18.35% | 18.93% |
| OPERATING EXPENSE RATIO | 35.15% | 35.15% | 34.88% | 34.62% | 34.36% | 34.10% | 33.84% | 33.59% |
| RENTAL INCREASE | 103% | |||||||
| EXPENSE INCREASE | 102% | |||||||
| APPRECIATION RATE | 8% CAP RATE | |||||||
| INTEREST RATE | 4.750% | |||||||
| LOAN TERM | 7 YEARS | |||||||
| AMORTIZATION | 25 YEARS | |||||||
| LOAN BALLOON | $781,878 |
Average Annual Return 16.19%
Monthly Cash Flow $4,266
Down Payment $437,500
Investment Summary: Investors purchase a property from OCG at OCG’s cost and put 35% – 50% down as a down payment and qualify for traditional bank financing for the remaining cost. OCG helps manage the property managers on a monthly basis and the property manager remits the rental income checks directly to the investors so they can pay for the mortgage payment out of the rents. Investors and OCG own the property jointly. Equity and cash flow split differently on each investment based on multiple investment factors. In the investment below the investor gets 35% of the net positive cash flow paid out monthly and gets 50% of the equity upon sale. OCG brought existing equity to the table on the property as well as did all of the work to get it up and running including finding the property and purchasing it, renovating the property, and tenanting the property so it is completely turnkey.
| ESTIMATED MARKET VALUE | $1,679,176 | $1,679,176 | $1,737,281 | $1,797,285 | $1,859,246 | $1,923,227 | $1,989,292 | $2,057,506 |
| PURCHASE PRICE | $1,250,000 | $1,250,000 | $1,250,000 | $1,250,000 | $1,250,000 | $1,250,000 | $1,250,000 | $1,250,000 |
| DOWN PAYMENT (35%) | $437,500 | $437,500 | $437,500 | $437,500 | $437,500 | $437,500 | $437,500 | $437,500 |
| MONTHLY | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 | YEAR 7 | |
| RENTAL REVENUE | $18,705 | $224,460 | $231,194 | $238,130 | $245,274 | $252,632 | $260,211 | $268,017 |
| Vacancy Allowance (5%) | $935 | $11,223 | $11,560 | $11,906 | $12,264 | $12,632 | $13,011 | $13,401 |
| GROSS RENTAL REVENUE | $17,770 | $213,237 | $219,634 | $226,223 | $233,010 | $240,000 | $247,200 | $254,616 |
| OPERATIONAL EXPENSES | ||||||||
| Property Management (8%) | $1,422 | $17,059 | $17,571 | $18,098 | $18,641 | $19,200 | $19,776 | $20,369 |
| Property Taxes | $1,357 | $16,284 | $16,610 | $16,942 | $17,281 | $17,626 | $17,979 | $18,338 |
| Insurance | $1,042 | $12,500 | $12,750 | $13,005 | $13,265 | $13,530 | $13,801 | $14,077 |
| Lawn Maintenance | $200 | $2,400 | $2,448 | $2,497 | $2,547 | $2,598 | $2,650 | $2,703 |
| Utilities | $1,055 | $12,660 | $12,913 | $13,171 | $13,435 | $13,704 | $13,978 | $14,257 |
| Repairs Allowance | $1,500 | $18,000 | $18,360 | $18,727 | $19,102 | $19,484 | $19,873 | $20,271 |
| TOTAL OPERATING EXPENSES | $6,575 | $78,903 | $80,652 | $82,440 | $84,270 | $86,142 | $88,057 | $90,016 |
| NET INCOME | $11,195 | $134,334 | $138,983 | $143,783 | $148,740 | $153,858 | $159,143 | $164,600 |
| LOAN PAYMENT | $4,632 | $55,584 | $55,584 | $55,584 | $55,584 | $55,584 | $55,584 | $55,584 |
| NET CASH FLOW | $6,563 | $78,750 | $83,399 | $88,199 | $93,156 | $98,274 | $103,559 | $109,016 |
| OCG SPLIT (35%) | $2,297 | $27,563 | $29,189 | $30,870 | $32,604 | $34,396 | $36,246 | $38,156 |
| NET INVESTOR SPLIT | $4,266 | $51,188 | $54,209 | $57,329 | $60,551 | $63,878 | $67,314 | $70,861 |
| LOAN BALANCE | $812,500 | $812,500 | $795,132 | $776,921 | $757,826 | $737,804 | $716,810 | $694,797 |
| PRINCIPAL REDUCTION | $1,447 | $17,368 | $18,211 | $19,095 | $20,022 | $20,994 | $22,013 | $23,082 |
| END OF YEAR LOAN BALANCE | $811,053 | $795,132 | $776,921 | $757,826 | $737,804 | $716,810 | $694,797 | $671,715 |
| CAP RATE | 10.75% | 10.75% | 11.12% | 11.50% | 11.90% | 12.31% | 12.73% | 13.17% |
| CASH ON CASH RETURN | 11.70% | 11.70% | 12.39% | 13.10% | 13.84% | 14.60% | 15.39% | 16.20% |
| PRINCIPAL REDUCTION RETURN | 1.98% | 1.98% | 2.08% | 2.18% | 2.29% | 2.40% | 2.52% | 2.64% |
| TOTAL RETURN ON INVESTMENT | 13.68% | 13.68% | 14.47% | 15.29% | 16.13% | 17.00% | 17.90% | 18.83% |
| AVERAGE ANNUAL RETURN | 13.68% | 13.68% | 14.08% | 14.35% | 14.89% | 15.31% | 15.75% | 16.19% |
| OPERATING EXPENSE RATIO | 35.15% | 35.15% | 34.88% | 34.62% | 34.36% | 34.10% | 33.84% | 33.59% |
| RENTAL INCREASE | 103% | |||||||
| EXPENSE INCREASE | 102% | |||||||
| APPRECIATION RATE | 8% CAP RATE | |||||||
| INTEREST RATE | 4.750% | |||||||
| LOAN TERM | 7 YEARS | |||||||
| AMORTIZATION | 25 YEARS |
Average Annual Return 9.54%
Monthly Cash Flow $8,956
Down Payment $1,125,000
Investment Summary: Investors invest in a property with OCG at OCG’s cost and put up the cost of the investment. OCG helps manage the property managers on a monthly basis and the property manager remits the rental income checks directly to OCG and OCG pays investors thier share of the cash flow. OCG and investor own the property 50% each. Investor gets 75% – 80% of the net positive cash flow paid out monthly and gets 50% of the equity upon sale. OCG brought existing equity to the table on the property as well as did all of the work to get it up and running including finding the property and purchasing it, renovating the property, and tenanting the property so it is completely turnkey.
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