RE Investment Fund, LLC
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Reinelle Capital RE Investment Fund, LLC
Offering Platform
INTRODUCTION TO OUR COMPANY
Reinelle Capital RE Investment Fund, LLC aims to be a real estate investment vehicle that generates income and capital appreciation from real property and related investments. Leveraging the Manager’s combined experience, knowledge, skills, and extensive personal and professional networks, the Company plans to identify profitable opportunities in real estate. These opportunities will include, but are not limited to, acquiring single-family and multi-family residential properties that can be enhanced through structural improvements and adding single or multiple accessory dwelling units (ADUs) thereby increasing rental income. The Company intends to generate income by operating these improved properties and by capturing capital appreciation upon their sale.
Ventura County has the largest housing shortage in the U.S., according to a study by Up for Growth. The study examined housing construction from 2012 to 2021 across 193 U.S. metropolitan regions. California, with 11 of the 25 areas facing the most significant shortages, has high home costs due to construction not keeping pace with population and economic growth. The state is short by 873,730 homes, or 6.5% of all homes statewide, while the national shortfall is 3.9 million units. Ventura County, with a population of nearly 900,000, is 12.5% short of local housing needs, lacking 36,161 homes.
therealdeal.com | "Ventura County has the nation’s biggest housing shortage" | October 20, 2023
operations summary
Reinelle Capital RE Investment Fund, LLC aims to be a comprehensive real estate investment vehicle focused on generating income and capital appreciation through the acquisition, improvement, and sale of residential properties. Utilizing the combined expertise, industry knowledge, and extensive networks of its management team, the Company will target high-potential real estate opportunities. These include purchasing single-family and multi-family residential properties, enhancing them through structural improvements, and adding accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) to increase rental income. Reinelle Capital plans to generate revenue from operating these improved properties while capturing significant capital appreciation upon their eventual sale.
The Company and its management team recognize the growing support for ADU and JADU development across California (AB 1033), viewing it as a unique opportunity to add substantial value to properties. This approach is designed to capitalize on both traditional investment strategies—such as the “fix-and-flip” model, which focuses on improving properties for resale profit, and the income property model, which focuses on generating steady rental income. By combining these two methodologies, Reinelle Capital intends to create a versatile strategy that maximizes both income and appreciation potential.
Targeting Ventura County, with a particular focus on Oxnard, Ventura, and Port Hueneme, the Company seeks to acquire properties that can benefit from these value-adding strategies. Through its experienced management, Reinelle Capital is poised to execute its business model effectively, driving strong returns by capturing rental income and realizing capital gains from property sales in a thriving market.
Similar Completed Projects
1313 W. Cedar Street
1313 W. Cedar Street, Oxnard, CA 93033
Approximate Acquisition Price: $515,000.00
Approximate Cost of Construction (Adding ADU’s / 1 JR and 1 detached (2nd story over garage): $300,000.00
Total Cost: $815,000.00
Estimated After Renovation Value: $1,000,000.00 (Legal 3 unit)
Estimated Equity Increase: $185,000.00 (within approximately 18 months)
Approximate Rental Income (monthly):
- 3 Bedroom +1 bath - Main house = $3,750.00
- 1 Bedroom + 1 bath - New Jr. ADU = $2,300.00
- 3 Bedroom +1.5 bath - New Detached ADU = $3,800.00
- Total Monthly Rent: $9,850.00
Approximate Operating Expenses:
- Loan of $381,100.00 @ 8.375% = $2,659.76/month
- Operating expenses: $2,500.00/month (taxes, insurance, management fee)
- Total monthly expenses: $5,159.76
Approximate Cash Flow:
- $4,690.24/month x 12 = $56,282.88 Annually
Approximate Cash (Capital) Investment:
- Down payment / Closing Costs: $150,000.00
- Cost of Construction: $300,000.00
- Total Cash Investment: $450,000.00
Approximate Return on Investment (ROI):
- 12.50%* (Based on Monthly Cash-flow estimate)
The *4.50% over Preferred Return of 8% is split 50/50 (General Partner/Investor) - Total return to Investor: 10.25% (Based on Monthly Cash-flow estimate NOT including property appreciation) Estimated value-added after renovations (ARV): $185,000.00 is split 50%/50% (General Partner/Investor)
- ROI: 35.9% (Includes 18 months of cash flow and equity share based on an ARV of $1,000,000.00)
1130 Redwood Street
1130 (A/B/C) Redwood Street, Oxnard, CA 930333
Approximate Acquisition Price: $570,000.00
Approximate Cost of Construction (Adding ADU’s / 1 JR and 1 detached): $250,000.00
Total Capital Cost: $820,000.00
Estimated After Renovation Value: $1,000,000.00 (Legal 3 unit)
Estimated Equity Increase: $180,000.00 (within approximately 18 months)
Approximate Rental Income (monthly):
- 3 Bedroom +1 bath - Main house = $3,750.00
- 1 Bedroom + 1 bath - Jr. ADU = $2,300.00
- 3 Bedroom +1.5 bath - New Detached ADU = $3,800.00
- Total Estimated Monthly Rent: $9,850.00
Approximate Operating Expenses:
- Loan of $399,000.00 @ 7.5% = $2,789.87/month
- Operating Expenses: $2,500.00/month (taxes, insurance, management fee)
- Total Estimated Monthly Expenses: $5,289.87
Approximate Cash flow:
- $4,560.13/month x 12 months = $54,721.56 Annually
Approximate Cash (Capital) Investment:
- Down Payment / Closing Costs: $176,000.00
- Approximate Cost of Conversion: $250,000.00
- Total Approximate Cash Investment: $426,000.00
Approximate Return on Investment (ROI):
- 12.85%* (Based on Monthly Cash-flow estimate NOT including property appreciation)
*4.85% over preferred return of 8% is split 50/50 (General Partner / Investor) - Total return to Investor: 10.425% (Based on Monthly Cash-flow estimate NOT including property appreciation) Estimated value-added after renovations (ARV): $180,000.00 is split 50%/50% (General Partner/Investor)
- ROI: 36.8% (Includes 18 months of cash flow and equity share based on an ARV of $1,000,000.00)
Oxnard Appreciation Rates:
