75 unit property located in Birmingham, AL. C - asset in a gentrifying C area. $20 million private development a couple blocks away that has a new sports complex, Comfort Inn and Starbucks. Pictures show old color, and the transition to the new colors. Trees needed to be cut immediately, gutters fixed, fascia repaired, some siding replaced, etc. Starting to look better already!

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

I liked this deal because we got it at such a discount. Even with the work it needed it was a great deal. 900k all in but appraised at $2.3 million. Loads of room for rent growth.

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

Networking and staying active in the market. The negotiation on this property was easy, one offer, counter offer, acceptance.

How did you finance this deal?

Private money + joint venture

How did you add value to the deal?

We are adding lots of improvements to the property and giving it better curb appeal. Repaired fascias, windows, siding, railing, new paint, new unit upgrades such as counter tops, new appliances in select units.

What was the outcome?

We will close on a refinance for this property in the first week of February. All money will be out of the deal in less than 6 months, plus a hefty paycheck. Refinance is for $1.3 million and our current all in mark is just over $900k. Cashflow with infinite ROI from here on out.

Lessons learned? Challenges?

This property had some lifting that needed to be done however the biggest obstacle was simply rain. It slowed the project down by a few weeks. The contractors have done an excellent job.

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