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

Purchase Price: $1,400,000
Price Per Door: $58,333
Average Rents: $700/mth
Market Rents: $1,100/mth
Renovation Budget: $240,000
After Repair Value End of Year 3: $2,426,00
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

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