CityDAO is a home for experiments, and what better experiment to run that being the first DAO to collectively own a rental property?
A large number of CityDAO citizens voiced support for it
The number one most agreed with statement on the 2023 Goals Polis feedback was buying properties that can generate revenue for the DAO.
Good time to buy
We are seeing a bit of a market correction in real estate. Since interest rates are high, it makes it hard to finance properties so prices are coming down. This gives us an advantage if we buy a property with all cash.
This will be an asset that continually funds the treasury, ideally in perpetuity. Right now, the DAO is basically losing money every month. This could change that!
Real estate helps diversify us out of crypto, especially in these turbulent times where faith in cryptocurrency and stablecoins is shaky. Plus, real estate can be converted back to cash if needed, it’s not like the DAO is losing this money.
This is a straightforward project that can be executed in less than a month. It requires no dev work or extensive project planning. It can be a quick win, great to build some momentum (and prove we are out here building during the bear market).
Use up to $325,000 to acquire an income generating property under CityDAO LLC or a wholly-owned subsidiary.
Scott will lead the effort and may recruit DAO members to help find properties and research different options and engage citizens along the way with temperature check snapshot votes for different properties.
Upon passage of this proposal, the funds will be sent to CityDAO’s Coinbase offramp as USDC and transferred the the CityDAO bank account so that the property can be acquired quickly without waiting for currency conversions.
If the property that is successfully acquired is less than $325,000, the remaining funds will be returned to the DAO, except for $1,000, which will be sent to Scott as payment for leading the project.
Potential properties will be posted to Snapshot and shared widely in Discourse for a temperature check vote (no forum period). Each Snapshot will be single property with a YES or NO vote with the property description and reasoning.
If after 5 properties are shown to the DAO and none have a majority YES temp check vote, funds will be returned to the DAO treasury.
Doorvest or a similar platform will likely be used to facilitate acquisition and property management more easily.
Real estate has its risks and may go down in value. This should not be seen as an investment, Citizens will never be able to receive dividends or profits from the DAO.