The Acquisition

We acquired this 24-unit property in January 2024 through a 506b offering. This off-market deal came to us from a trusted broker we've successfully partnered with on past acquisitions. The seller was distressed and the property wasn't performing how it should be, so we submitted our offer and began negotiations, eventually coming to an agreement on price and getting the asset under contract.

Purchase Price: $2,910,000

Highly Desirable Unit Mix: (15) two bedrooms/ 1 bath, (9) one bedroom/ 1 bath - each with a walkout porch.

Average Rent: $1,192 in-place | $1,400 market-rents

Before Photos:

The Renovation and Value-Add

Prior to acquiring any properties for our investors, we outline a comprehensive value-add plan to maximize the value of the asset. In this case, due to previous ownership not making the efforts to improve the property, we were able to identify a ton of upside potential.

As we were going through the due diligence process, pre-acquisition, we made sure the seller did not re-lease any of the units with expiring leases. This allowed us to immediately begin executing our value-add strategy as those units remained vacant, increase rents to market and re-lease within the first 45 days.

Here was our strategy:

• Value-Add Plan:

• New LVP flooring in all units.

• Update kitchen cabinets with new countertops and stainless steel appliances.

• Renovating the bathrooms to include tile floors, bath surrounds and new lighting and fixtures throughout.

• Additional Improvements:

• Improve common areas.

• New paint and carpets in hallways.

• New lighting fixtures.

• New boiler.

• Exterior Improvements:

• Repair garages.

• Touch up paint for curb appeal.

After Photos:

The Outcome

Post-renovation, we were able to increase rents by $208 per unit to the market price of $1,400, increasing rental income by $39,456 in year 1 (a 17.5% increase). Additionally, we were able to take advantage of poor management from previous owners and decrease expenses through implementing utility bill back (RUBS), where tenants pay a portion of their own utilities. This increased our income by $75 per unit or $21,600 per year. Lastly, through exterior upgrades, repairing the garages on site and working out a contract with the local internet provider to give them exclusive rights to servicing this property, we increased other income streams by $90 per unit, adding another $25,920 annually to our NOI.

With these improvements, we are able to provide investors with consistent cash flow from rents and an average return of ~20% per year over our 7 year hold. That means investors will 2.4x their investment. This is all possible because of the experienced team and relationships we've built in order to make these types of projects possible for our investors.

Here's a video breakdown that goes into more depth about our process throughout this acquisition.

If you are looking to get in on our future opportunities, get started by contacting us to learn more.

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