Xxxx Yankton St NW, Elk River, MN 55330

COTTAGES AT BLACKHAWK WOODS is a rental community designed for adults age 55 years and older with low to moderate incomes. This is a very unique opportunity to purchase real estate for the purpose of renting, due to a restructuring of a subsidy program to assist low income renters. This 1-level cooperative community provides owners/landlords with Low Income Housing Tax Credits (LIHTC) and tax exempt rental income, as well as long term appreciation potential. This program was first put into place as part of the 1986 tax reform act, which was offered exclusively to large corporations and banks. The IRS has done hundreds of Section 42 Tax Credit programs throughout the United States. The developer of this community, along with real estate attorneys and their CPAs have restructured this program to benefit individuals interested in owning rental real estate. This form of ownership has many tax advantages, including Federal Tax Credits for a period of 15 years to offset your personal income tax liabilities. Tax free rental income which pays approximately 25% of the cost of share price, probable appreciation of the real estate value from the initial cost of your share, as a family owned unit- financial and emotional security for your aging relative, each townhome will be professionally managed, providing complete leasing services including marketing, tenant screening, contracts and leases, maintenance and accounting services for every owner. The cottages can be purchased by an owner/occupant, however, in order to comply with the MN Housing and Finance Administration (MHFA), there are certain procedures required to maintain the subsidies for the community. Please contact the listing agents for further information. This is a great option for investing in a retirement portfolio or for family members of an income qualified senior relative in need of economical housing. The gross income requirements for the renters will be $34,620 for a 1 person household and $39,540 for 2 persons. Rents will be $659 for a one bedroom cottage and $854 for a two bedroom cottage. An owner/occupant will be able to offset their rent using the Section 42 program. Financing does not apply in this situation. Lenders are unable to offer financing for cooperative communities however a line of credit or 2nd mortgage on a personal home is a viable option if cash is not available. For more than 20 years, the general contractor has been developing 1-level communities for senior citizens in MN and North Dakota with limited incomes who need to move from their life-long homes because of deteriorating health, the death of a spouse, unmanageable stairs or ongoing maintenance issues. Because they depend on social security benefits and some bank interest as their only income source, it is difficult for them to find secure and affordable housing to maintain their independence. They have seen waiting lists in some of the other communities due to the shortage of affordable housing for the senior population. Here is your opportunity to actually help people in need and at the same time earn a terrific return on your rental investment! A list of current rental communities operating under the Section 42 housing credits program is available upon request. Proposed projections and additional information are available for review. Beth Merwin and Lucy Boeshans are licensed real estate agents with RE/MAX Results, a MN-based licensed brokerage. The intent of this information is to inform the reader in regard to the purchase of residential real estate. No investments or securities are being sold. Any rental returns stated are solely based on what other individuals have experienced owning similar properties in the past. If your buyer intends to purchase this real estate for investment purposes, please advise the buyer to consult with an investment professional before doing so. Neighborhood Description This community is located conveniently off Hwy 10 in Elk River and is se