Immediate Need: Preliminary Financing:
Step 1. Raise temporary funds to purchase 2 properties March 1, 2021
Parcel # 2 : 11215 Davis Road : Price $300,000
3 bedroom, 2 bath home on 2.11 Acres. Immediately adjacent to UUCT and Frazer properties. Concrete block. 2000 sf. Central Heat and Air. Handicapped accessible. + 2 car carport. + covered patio on back + Gazebo, Storage Shed, Nicely landscaped. Zoned RSC-4 (4 houses per acre). Septic Tank. City of Temple Terrace Water and Garbage. Built 1965. One non-functioning well on property.
Parcel 4: 11201 Davis Rd: Price $270,000
3 bedroom, 2 1/2 bath home on 1.45 acres. Adjacent to 11215 Davis Rd. Concrete block. 1551 sf. Central Heat and Air. Handicapped accessible. + patio on back + 1441 sf Metal Utility Building, Nicely landscaped. Zoned RSC-4 (4 houses per acre). Septic Tank. City of Temple Terrace Water and Garbage. Built 1973. One well on property.
Funding Strategy:
$650,000 needed (purchase cost + legal fees, development fees, holding costs)
offer 4% interest on investment for 1 year. = $26,000 / yr = 2, 166 / month
We’ve changed the interest to 6% for the year: = $39000/yr = $3250/mo
Rent out larger house: estimated rent $ 2000 might possibly rent for $2500
Rent out smaller house: Marla rent $1500
Total monthly income = $3500 / mo = $250/mo positive cash flow / month after interest payments. Will be used for taxes (estimated $4000 each) , repairs, as needed.
This gives one year time to develop plans to develop a plan and proceed ahead or sell the property and recoup investment.
For Example: We need 26 people to invest 25,000 with a return of $1000
OR 6 people to invest $108.300 with a return of $4,332yr or $361 month
OR lots of people in between these two examples.
Legal and Ownership Structure:
For this phase, Title would be held in a Florida Land Trust. All investments would be secured by promissory notes and a mortgage on the property.
Step 2: Recruit interested members to immediately form a coordinating committee to raise funds, research and decide the course of action.
Step 3. Decide on type of housing to develop. How much will it cost? How to do the most cost effective development. Affordable housing? Density?
Investigate Financing options to develop the property.
Plan Phases of growth
Decide on Ownership model to use.
Step 4: Decide on how the properties will be managed. Who will make decisions? How will income and expenses be collected and distributed?
Step 5: Recruit a team of specialists to write contracts, leases, participation agreements, etc:
Is rezoning or a PUD needed?
Architect to design master plan and housing units
Civil Engineer to do land tests, design utilities,
Building Contractors to develop utilities, remodel common houses, build units.
Welcome to Harmony Terrace of Tampa Bay 