Victorian Renovations (VR), a start up company, was created to fulfill the growing demand for vintage homes that have been restored in downtown Portland. Initial focus of the company is on one building on Fifth and Pearl. It is currently in the process to purchase. Doug Machen and Sarah Renner are the owners of the business and have extensive experience in renovating houses. They also graduated from the University of Portland MBA program. Doug and Sarah will carry out most of the work. However, some larger jobs may require the use of external contractors.

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. The property at Fifth and Pearl is expected to be rented for a high-priced rental and generate substantial cash flow to fund future projects.

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. The company will make unique homes and rent them out to discerning renters who are willing to pay more in order for a higher quality home. VR seeks to be viewed as a highly visible company in the property development market.

1.2 Objectives

The following are the main objectives for VR:

• To acquire investor funding to purchase and refurbish a four-bedroom residence at Pearl and Fifth in Portland’s Hawthorne District.
• To complete renovations at the four-bedroom Victorian Residence and to convert it into 2 bedrooms units by October 2001.
• To rent out that residence to provide an income stream enough to pay the mortgage and provide additional income for future projects.
• To buy another house for renovation immediately after.

1.3 Keys To Success

The key to this project’s success will be:

• To finish renovation work within the allocated time and within the budget.
• You will need to find tenants for the building either before or as soon afterwards as renovations are complete.
• To maintain an average of 80% occupancy rate per year.