24 unit - Value Add

[Ian Armour]

Investment Info:

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

Purchase price: $1,400,000
Cash invested: $400,000

Financial Highlights:

Purchase Price: $1,400,000
Price Per Door: $58,333
All Units: 3 bed/1 bath
Average Rents: $700/mth
Market Rents: $1,100/mth
Renovation Budget: $240,000
Refinance End of Year 3 or sooner
After Repair Value End of Year 3: $2,426,000
Value Per Door: $101,000
Valuation at Year 10: $3,630,000 (5% appreciation)
New Loan: $1,819,000 (75% LTV @ 6%)
Net Proceeds: $454,500
Initial Capital Invested: $400,000
Remaining Equity: $606,500
Ongoing Cashflow Years 4+: $70,000/year approx
Quarterly Distributions Starting Q4 Year 1
Additional Details:

Strong cashflow year 1-3 before refinancing
All invested capital repaid to the investor by the end of year 3
Reno costs provided by Lender
Strong boots on the ground team in place
Landlord-friendly market
Total Raise: $400,000
Minimum Investment: $50,000
GP/LP Structure
Partnership Agreement
Building Specifics:

Number of Units: 24 units
Building Size: 33,393 sq. ft.
Unit Mix: (24) 3-bed, 1-bath
For more information, visit www.venturecocapital.com.

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

Long term wealth

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

It was listed.

How did you finance this deal?

Bridge Financing, into traditional.

How did you add value to the deal?

Rehabs and increasing NOI

What was the outcome?

Still in process

Lessons learned? Challenges?

Determining an accurate renovation budget