Off Market Valdosta GA 83 Unit Value-Add Investment

[Ian Brown]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Valdosta.

Purchase price: $900,000
Cash invested: $300,000

83 Unit Apartment Purchased as Birchwood Apts then Renovated & Rebranded as Camellia Cottages

What made you interested in investing in this type of deal?

Excellent margins, value-add opportunity, with clear path to repositioning

How did you find this deal and how did you negotiate it?

Off market deal direct to seller

How did you finance this deal?

SWGB (local bank) 80/20 LTV

How did you add value to the deal?

30% rental rate growth from existing loss to lease and forced appreciation thru 5-6k/unit renovation (currently 60-65% units complete) + exterior paint/signage/landscape/branding/name

What was the outcome?

SBL non-recourse refinance summer 2021 (long term hold)

Lessons learned? Challenges?

Did almost all reno out of cashflow and personal funds, should've borrowed more initially and been more aggressive with reno timeline. If we did it again, would probably purchase w/ bridge loan, reno all units w/in 12-18 mos, then refi.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My partner and I are brokers, so we represented ourselves