Leaseback Model Homes

We have all experienced the thrill of imagining ourselves in one of those perfectly appointed showroom Model Homes. The homes with fabulous interiors on the oversized lots with the extraordinary landscape packages. Did you know that these are also great investment properties with a sound tenant and a multi-year lease agreement in place for investor(s) and their portfolio?

Wahea Homes’ Model Home Leaseback Program is a solid multi-year guaranteed ROI investment backed by real estate that the investor(s) owns with a 18-36 lease agreement in hand at closing. The Model Home is a sale center that is used by our team to sell pre-ordered semi-custom homes in the area or subdivision and offers the prospective home buyer the ability to design and view the various upgrade options available to them at the time of their purchase. The Model Home will have upgraded features like vaulted ceilings, crown molding, upgraded kitchen cabinet features and countertops, bathrooms featuring spa tubs, smart showers and flooring at a base cost to the investment partner.

Below is a breakout of the benefits and features included when investing in the Wahea Home’s Model Home Investment Program:

ROI

The ROI (Return on Investment) is in the 8% to 10% margin range annually. For example, if a model home costs $250,000 and the market rent prices is:

• $2,100.00 per month then the gross rate of return would be 10.08% annually
• $1,800.00 per month then the gross rate of return would be 8.64% annually

Locations

Models are usually built in the most ideal locations in subdivisions that are easy to get to and placed on the most sought-after home sites.

Features

Working with our building partners, the Model Home will feature the latest trends with all of the available upgrades and envy worthy features like smart home fixtures with security, upgraded lighting, crown molding, high end appliances and fixtures. These features add a 10 to 15% increase in resale value.

Curb Appeal & Decorations

The model homes are landscaped by professional designers for show stopping curb appeal and feature sophisticated outdoor living spaces. The interiors are professionally staged, giving investors the opportunity to purchase the furnishings with the home if they choose to corporate lease out or Air BB the home later.

Long term investment

The investor(s) can choose to keep the home as a rental property after Wahea Homes' lease ends* and continue to receive a monthly rental income or keep this dream home as your personal residence.

Real estate tax breaks

Just like any other real estate investment, deductions are possible for "ordinary" expenses such as mortgage interest, property tax, depreciation and repairs, as well as "necessary" expenses such as interest, maintenance, utilities and insurance.**

Long and short term capital gains

If you do decide to sell the property, there's a chance it will sell for more than you purchased it for. Depending on the length of time you own the property, you could benefit from a reduced tax rate or even quality for a zero percent long-term capital gains rate.***

How it works

With the model home leaseback program, Wahea Homes constructs and sells the model home to the investor(s) and agrees to lease it back for a specific contracted period of time- usually ranging from 18-36 months. The Model home is used as a model/ sale center-office during leaseback tenure. Based on the lease agreement option, Wahea Homes will pay the lease either by-quarterly, yearly or up front in full. The investor would need to be vetted financially and Wahea Homes would prefer an investor(s) to have the capital (non-financed). Wahea Homes will maintain the home inside and out including landscaping. The home would have the standard 2-year MEP & 10-year Structural Warranty. Wahea Homes will stage the model home(s) with various upgrades features from our supplier/ the manufactures. Some our partners are: Kichler Lighting (https://www.kichler.com/), James Martin (https://jamesmartinfurniture.com/), Kohler (https://www.us.kohler.com/us/), Moen, BMC kitchen/secondary cabinets (http://www.kcdus.com/), upgraded kitchen Kraft Maid (http://www.kraftmaid.com/), Therma-Tru Doors (www.thermatru.com), LP Building Solutions (https://lpcorp.com/), 50yr siding warranty, Boral Brick (https://boralamerica.com/).

At the end of the lease agreement, Wahea Homes will complete any conversion like certain amenities to suit the needs of Wahea Homes- such as an office in the garage, walking paths to other model homes, courtyard to full driveway, remove all sales product fixtures and turn over the property to the investor.

Interested? Good! Because we're excited to share options we have available that would work for you.  Just visit www.waheahomes.com/mhi to learn more.

Sources: *Subject to applicable law and HOA/Subdivision documents. **https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping ***https://www.bankrate.com/finance/taxes/capital-gains-and-your-home-sale-1.aspx