16 Unit Heavy Value Add Jacksonville FL

[Chris Grenzig]

Investment Info:

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

Purchase price: $1,170,000
Cash invested: $900,000

16 Unit Value-add property we significantly renovated spending $35k per unit doing interiors, exteriors, and amenities. Completely overhauling the property and significantly improving. More than 2x the in place NOI at purchase and will refi out 100%+ of initial capital and hold for cash flow.

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

Orange Park has had next to no new supply since the 80s/90s because of barriers to entry in the physical barriers around the submarket as well as the low allowable density for new construction. Also, the prior management had done a poor job and gave us upside in operating expenses and in rental income.

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

It was through a local broker who brought it to me off-market after he knew what types of deals we were looking for.

How did you finance this deal?

70% LTV life insurance loan

How did you add value to the deal?

Spent $35k per unit on interiors and exteriors. Re-piped the whole property, built a laundry room, expanded the pool deck and added pavers, refenced the property, re-built 2 exterior staircases, re-landscaped, and put in all new cabinets, granite, appliances, LVP flooring, lights, doors, blinds, etc.

What was the outcome?

In the process of trying to do a full cash out refi right now into long term non-recourse debt.

Lessons learned? Challenges?

Construction and heavy reno will create/reveal problems you didn't know existed, have a healthy contingency and stomach.

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

Jim Hoggatt - Walker & Dunlop Mortgage Broker
Jordan Feldman - Rampart Insurance
George Bacon - Jacksonville/Southeast US private broker

Walkthrough video of a unit