32 Unit Complex Jacksonville Fl. (Value Add / Expenses Are 70%

[Tj Hines]

There is a 32 unit apartment complex that I'm working right now that is currently 95% occupied. The property is being mismanaged. Property is operating at 65-70% expense ratio to the EGI. Owners inherited the property and don't have a clue how to manage it. They are seriously motivated. Price is $1.69M. Owner is open to holding a 2nd note as well. Rents are under market value $100-150 and can be raised through minor cosmetic renovations. Worst case scenario at $3,500 a unit. Property has a laundry facility for extra added income. Property is a C class property located in C area. Population growth and job growth is strong. This property can easily operate in between 35-40% expense ratio. This is a home run opportunity for an opportunistic investor who loves value add. Exit strategy after we stabalize the property is to refi cash out from all the equity we created in the property from proper management and increasing the rents through cosmetic renovations within a 2 year time frame. Maybe hold the property for 10 years since we were able to pull the majority of our original investment back out in 2 years. If anyone here is interested please let me know. I have T12 and rent rolls for July 2017 from seller. I have underwritten this deal and can give you my perspective on it. Thanks