Victorian Renovations is a new start-up company. It was established to address the increasing demand for unique, restored vintage homes in Portland, Oregon. The company’s initial focus is on one building at Fifth and Pearl. This building is currently being purchased. Doug Machen (the business’s owner) and Sarah Renner (the other half of the business), are both experienced in house renovating and have graduated from University of Portland’s MBA program. External contractors will also be used for the larger jobs, but most of the work will be completed by Doug and Sarah.
After completion, the house will be rented out, and the income stream will be used to pay the mortgage on the house and to finance the purchase of another property in downtown Portland. Due to high demand in this area for unique homes, the Fifth and Pearl property is likely to be rented. The rental will bring in substantial cash flow and pay a very high price.
1.1 Mission
The mission of VR is to develop rundown houses in the Portland area, to improve the look and financial viability of downtown Portland, and rent those properties out to provide a stream of income for future investments. VR will create unique homes for the discerning renter who is willing and able to pay more for a high-quality home. VR is a company that wants to be prominent in the property market.
1.2 Objectives
Here are the main VR goals:
- To secure investor financing to buy and renovate a four-bedroom residence located on Pearl and Fifth in Portland’s Hawthorne District.
- To finish renovations on the four-bedroom Victorian house and convert it into two 2-bedroom units in October 2001.
- To rent the residence out to make an income stream sufficient to pay the mortgage, and to create additional income for future projects.
- To purchase another residence for renovation immediately thereafter.
1.3 Keys to Success
These are the keys to success in this project’s endeavors:
- To complete the renovation work within the scheduled time and within the budgeted amount.
- You will need to find tenants for the building either before or as soon afterwards as renovations are complete.
- To maintain an annual average occupancy rate of at least 80%
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