Manor East Apts.

April 15, 2025

To: Prospective Buyers

Fr: Dwight A. Janssen

Re: Manor East Apartment Information: 523 39th Street, Springfield, Oregon 97478

All 8 apartments have the same floor pan which is an attracftive townhouse style with 2 bedrooms and a full bath upstairs. Downstairs is a living room with vinyl floors, kitchen, some with granite counters, tile floors and attractive cabinety. Also, the downstairs includes a 1/2 bath and laundry room.

I want to point out the recent Capital Gains Improvements to Manor East. A few weeks ago I spent $12,000 on a brand new roof on one of the building roofs and the other one has lots of life left in it. In the last few weeks I have spent about $30,000 on apartment renovations. Five years ago I spent over $40,000 on a ductless HVAC system in all 8 apartments. The tenants love the air conditioning during the summer!

Here are the terms of the sale: $1,038,000 on a NATD which I will carry with a down payment of $500,000 (Pays off my loan of $370,000 with extra funds to cover my capital gains). I would carry a loan of $525,000 @ 8.5% interest amortized over 15 years (Paid off in 15 years!) with a payment amount of $5,169 / month or $62,028 / year. This would leave an extra $13,000 for my closing costs. Apartments 3,4,6,7 & 8 have been substantially remodeled. I have purposely left 4 apartments vacant to facilitate buyer's showings and allow new owners to pick their new tenants. The anticipated rental income with all apartments rented will be $10,156 / month or $121,872 / year. This means your monthly payments would be about 1/2 your income, leaving you with plenty of cash flow each month. Also, the rents on 4 apartments can be raised by 10% each year since they are below market value @ $1,043 / month, only because I have been extremely good to my tenants over the years. The other apartments should rent for $1,500 / month accrding to 3 different management companies I interviewed before deciding to sell Manor East.

I will supply you with all the monthly bills associated with Manor East like utilities, etc. I'm sure you will have more questions in the future.... thanks for your interest!

Sincerely,

Dwight A. Janssen

Note: I would be willing to discuss a buyer's broker's fee if the buyer has not been able to come to terms with their realtor.