Based on today’s current economics of housing in the affordable marketplace, Mt. Helix has found success in providing affordable single family rental housing to a new class of residents who prefer to be long term renters and feel no urgency to buy homes or condominiums. Many of these renters have seen real estate depreciation, cannot qualify for home loans, or are uncertain about their future and prefer to let landlords worry about maintenance, taxes, and insurance. This trend has led to strong rents and high occupancy rates.
Through public/private strategic partnerships who provide access to several thousand single family properties Mt. Helix acquires, rehabilitates and provides well run affordable housing in cities where residential real estate is relatively under-valued, the economy is diversified, and there is potential for excellent cash flow and capital appreciation.
By obtaining properties where an immediate value can be created through remodeling and rehab, Mt. Helix Property Management then implements their selective screening process to establish a stable tenant base for their portfolio. Once the properties have been repositioned, the assets are bundled as collateral for the expanding credit facility.
With many markets having already hit bottom and Mt. Helix has demonstrated that now is an opportune time to invest in this type of asset. Single-family residential real estate has proven to be a desirable segment of the industry evidenced by its strong occupancy favorable leasing structures and the turnover in assets of this type, upside potential.
Mt. Helix acquires assets below replacement cost with the potential to add value in infill areas which often experience some barriers to entry. Each homes is analyzed for favorable costs per unit and per square foot, rent roll multiples, operating inefficiencies, cap rates and external risk factors. Their business model profits from the turnaround of distressed or tired assets that need repositioning and remarketing by purchasing the asset at the right price so that profit is made at the time of purchase. Though strong cash flow is a high priority, Mt. Helix invests in areas with good potential for asset appreciation.
The Mt. Helix portfolios represent focused investments in specific areas that will both generate cash flow but (together with targeted local government improvements to streets, sidewalks, and lighting) to improve neighborhoods, increase their desirability for renters, and add additional value to the Company’s properties.