Off Market Jacksonville FL 28 Unit Value-Add Investment

[Ian Brown]

Investment Info:

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

Purchase price: $900,000
Cash invested: $100,000
Sale price: $1,620,000

28 Unit Value-Add C-Class Apartment in Jacksonville FL.

Property was purchased as buy & hold, but market conditions improved rapidly and sale followed shortly thereafter.

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

Off market at a great price/door in an area that was starting to see meaningful rent growth

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

Off market through a broker friend/colleague. He was trying to bundle/package it with another (stabilized) apartment down the street, but we opted to purchase only the value-add 28 unit

How did you finance this deal?

Local credit union 80/20 LTV

How did you add value to the deal?

Unit turns/Paint/Pressure Wash/Branding/HUD & Section 8 Tenants/14 Evictions and cured most of the loss to lease.

What was the outcome?

Great outcome w/ 3.5x on equity in 17 mos

Lessons learned? Challenges?

Always buy value-add deals w/ clear path to "flip" your cashflows/NOI for refi or sale

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

Brokered on my own behalf