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08 - Repairs & Maintenance - Renovations & Updates - 3850 W 17th St, Cleveland, OH 44109 - Recovered e4ecda92 - 3850 W 17th St, Cleveland, Ohio 44109.md

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Property Updates ## 2026-04-06 - Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx): · Field · Value · · ------- · ------- · · Yhome Net Due TO DAO · $-9,633.29 · · Lofty Operating Cash · $-11,936.64 · · ECO Operating Cash · $-5,482.82 · · Outstanding Liabilities (Unpaid Bills) · $-5,410.50 · · DAO Net Cash (Capital Call) · $-38,250.48 · · Estimated Owners' Equity · $127,840.00 · · DAO Estimated NAV Per Token · $26.87 · · DAO Tokens · 3334 · · Curr

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# Property Updates

## 2026-04-06

- Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):
| Field | Value |
|-------|-------|
| Yhome Net Due TO DAO | $-9,633.29 |
| Lofty Operating Cash | $-11,936.64 |
| ECO Operating Cash | $-5,482.82 |
| Outstanding Liabilities (Unpaid Bills) | $-5,410.50 |
| DAO Net Cash (Capital Call) | $-38,250.48 |
| Estimated Owners' Equity | $127,840.00 |
| DAO Estimated NAV Per Token | $26.87 |
| DAO Tokens | 3334 |
| Current PM | ECO (Selling) |

# Property Updates

## 2025-12-18

- Property Update (12/18/2025):
- A new 8-month lease (12/29/2025-08/31/2026) for Apt 2 has been signed at $745/month.
- The DAO currently owes $29,075.48 between Yhome, Aligned, ECO Systems, Lofty, and unpaid taxes. All financial statements are in the the Financials subfolder in Dropbox.
- With a projected net cashflow of $823/month, it will take almost 4 years at 12% interest rate amortized to zero out this $29k debt.
- NAV is ~$47.95/share at a $201k AVM per [LoftyAssist](https://www.loftyassist.com/properties/01FTHEFJPXP17ENCEMWQMCHNXQ). This estimate has not been evaluated by a licensed broker.
- At this point, a vote for a capital call to raise funds (requiring a lender to fund a loan or dilutive equity), refinance via non-recourse/DSCR loan (requiring a DAO member to volunteer as borrower), or sale of the property on the MLS is required.
- A governance proposal to determine the next steps will follow this update. Owners may also submit their own proposal(s) to Lofty for a vote.

## 2025-07-15

- Property Update (07/15/2025):
- Governance Results for 3850 W 17th St:
- The Governance Voting results are back for the owner proposed vote to change property managers.
- The winning vote is:
- Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee
- This voting option received 1,016 / 1,031 token votes, which is equal to 99% of the total votes.
- The voting results can be found on chain [here](https://allo.info/application/3120229247) or by searching the application ID: 3120229247

## 2025-07-07

- Property Update (07/07/2025):
- Owner-Proposed Governance Vote for 3850 W 17th St:
- The current property manager, M1 Homes LLC with the following [wallet address](https://allo.info/account/PRLPPSU53SGKIK5Y7L2LAZPRJHDRO35FHXPFZQCQAWLOBCRKVGX5B7T6XI), is proposing a governance vote.
- M1 Homes LLC holds 50 tokens in this property.
- The property manager's reasoning is below, word-for-word:
- *Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
- PROPOSAL: Transition Property Management to ECO Systems LLC
- Background:
- When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes’ intended role.
Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.
- Recommendation:
- We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property’s financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.
- Key Points Supporting This Proposal:
- Original Agreement Integrity: M1 Homes’ proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.
- Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.
- Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.
- Operational Efficiency: ECO Systems LLC, in coordination with Hemlane as sub-property manager, offers a lean and transparent fee structure with no repair markups and rent-readiness verification.
- Property Management Transition (If Property is Retained):
- Option 1 ) Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee: One month's rent Hemlane rent-ready service $495 + materials & labor costs 10% markup on repairs or maintenance to Aligned if we must stay with them due to LAIC requirement, no markup to ECO Systems Rent placement to follow post-rehab verification
- ECO Systems may initiate capital calls post-transition
- Option 2 – Reject Vote #2 and Remain with M1 Homes LLC
- M1 Homes remains as manager
- No changes to current structure
- Financial obligations remain unresolved under the existing framework
- The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 15th once the voting period ends.

## 2025-04-28

- Property Update (04/28/2025):
- *Governance Results:*
- The Governance Voting results are back for the owner proposed vote to change property managers to M1 Homes LLC.
- The winning vote is:
- Yes [switch property managers to M1 Homes LLC]
- This voting option received 1,010 / 1,109 token votes, which is equal to 91% of the total votes.
- The voting results can be found on chain [here](https://allo.info/application/2960277958) or by searching the application ID: 2960277958

## 2025-04-25

- Property Update (04/25/2025):
- The current property manager, Yhome Nursing LLC, has put together a counter-proposal.
- This is in response to the governance vote to change managers, sent out on 4/25, which can be viewed on the property page.
- If you have already voted, and would like to change your vote, click the button below, or at the end of this email.
- Yhome owns 27 tokens in this property and their wallet address can be viewed [here](https://allo.info/account/5HHAXCPORYC2GPTBTBQIKERJTKEP2O4PFWWF7R4Q2MAPHGMOM4FBDX5SD4).
- Their counter-proposal is below, word-for-word:
- *Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
- Hi everyone,
- I want to start by saying I truly appreciate seeing more community members stepping up—that kind of engagement is commendable and valuable. However, it's also important to recognize that much of the recent momentum isn’t due to Yhome's failure to perform, but rather a desire by some to prevent Yhome from being fairly compensated for the work it has done.
- Yes, Yhome will receive compensation—as an asset manager or co-owner—but it's worth noting that the proposed alternative is essentially a return to a structure that already failed these properties in the past.
- Yhome’s current system has proven itself. We are no longer fire-selling properties. All past evictions have been successfully handled across the Cleveland portfolio. No one can credibly accuse Yhome of neglect or inaction. The work has been done, and the results speak for themselves.
- While I can’t compare Yhome to Earl, Alex or M1 directly—because we offer different services and use different strategies—what I can say is that shifting away from - Yhome may come with significant risks: possible capital calls, delays in repairs, and a lack of a local team with on-the-ground experience in this market. Sure, you may get a basic property management structure, but it won’t come with the same focus on long-term value, stability, and a “profit-first” approach that Yhome offers.
- Let’s be clear—many of the loudest critics on Discord are traders looking for quick flips, not long-term investors. If that’s your strategy, that’s your choice. But if you’re in this for stable returns and peace of mind, I encourage you to recognize the value Yhome brings and vote to stay the course.
- Thank you.

## 2025-04-25

- Property Update (04/25/2025):
- *Owner-Proposed Governance Vote:*
- An Owner with the following [wallet address](https://allo.info/account/PRLPPSU53SGKIK5Y7L2LAZPRJHDRO35FHXPFZQCQAWLOBCRKVGX5B7T6XI) is proposing a governance vote.
- This owner holds 50 tokens in this property.
- The owner's reasoning is below, word-for-word:
- *Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
- I recommend that we transition management of 3850 W 17th St Cleveland Ohio 44109 to M1 Homes LLC, effective April 30th. M1 Homes is a reputable property management company that owns and manages 36 homes and 3 commercial units in Ohio, as well as 17 homes in Illinois. M1 Homes also manages 8 properties in the Quad City area, as well as another 2 Cleveland homes on Lofty.
- This home is currently being managed by Yhome Nursing LLC. If there are any outstanding or unknown loans to Yhome Nursing LLC or Calixte Duffaut, M1 Homes will have the choice to accept management, propose another vote, or withdraw. I am not going to go into detail on why changing Property Management from Yhome Nursing LLC to M1 Homes would be beneficial to owners. M1 Homes already has current management in place who reside in the Cleveland Area.
- M1 Homes is an active participant on Lofty and in the Lofty Discord (M1), offering consistent communication and being readily available to answer any questions from investors. M1 Homes' management fees are 10% of gross rent. First month rent to place a tenant. No fees for re-lease and no maintenance upcharge.
- The owner making the proposal is the owner of M1 Homes, the property management company being proposed for the transition.
- The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, April 28th, once the voting period ends.

## 2025-02-15

- Property Update (02/15/2025):
- *Lower Unit:*
- A new tenant has been approved and will move in on 3/1/25.
- The tenant signed a 12-month lease at $745/month.
- The lease term is from 3/1/25 - 2/28/26.
- The tenant paid a deposit of $745.
- The property manager charges a leasing commission of first month's rent, which will be deducted from March's rent.
- The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.
- Once the tenant moves in, this duplex will be fully occupied with paying tenants.

## 2025-01-11

- Property Update (01/11/2025):
- *Upper Unit:*
- A new tenant has been approved and will move in on 2/1/25.
- The tenant signed a 12-month lease at $795.
- The lease term is from 2/1/25 - 1/31/26.
- The tenant paid a deposit of $795.
- The property manager charges a leasing commission of first month's rent, which will be deducted from February's rent.
- The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

## 2024-12-22

- Property Update (12/22/2024):
- The new owner-elected property manager, Yhome Nursing LLC, provided the following update:
- "The tenant has made her payment and will be moving into the upper unit on 2/1/25. We will keep the current listing active."

## 2024-12-09

- Property Update (12/09/2024):
- The new owner-elected property manager, Yhome Nursing LLC, provided the following update:
- "In regards to 3850 w 17th Unit 2. We have had more struggles than expected on the property. Between the electric and fire damage needing to be inspected, we were caught off guard. After placing a tenant, we have mutually agreed to end her lease, and refund payment in full.
- We will be correcting the issues, and preparing the listi