28 door value add located outside Louisville, KY

[Scott Huggins]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Sellersburg.

Purchase price: $1,900,000

This 28 unit townhome style property was a mom and pop managed property about 20-30 mins outside Louisville, KY. The property itself was in great condition and well maintained. As a result of the poor management there were several operational value add opportunities that we were able to capitalize on to immediately increase cashflow and increase the asset value for our investors.

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

It was a mom and pop managed property that presented some operational deficiencies and rents that were 10% below market. We saw an opportunity that we could resolve and realize an immediate increase in asset value and cashflow for our investors.

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

Off market deal brought by a broker connection.

How did you finance this deal?

Freddie Mac loan with investor syndication for rest

How did you add value to the deal?

Increased rents, implemented RUBS, cut expenses,

What was the outcome?

Implementing our management plan now

Lessons learned? Challenges?

Smaller properties dont have a lot of room for error so shop around for a good PM and insurance carrier and make sure your payroll expense is on point.

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

No