Student Apartment Investing

[Account Closed]

Investment Info:

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

Purchase price: $1,300,000
Cash invested: $325,000

29-Unit/47-Bed student apartment development constructed in 2007. Located adjacent to the Illinois State University campus.

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

The principal of IRV Capital had 25+ years of MAI commercial appraisal experience with a specialty practice in the student housing sector.

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

Local broker

How did you finance this deal?

Community Bank

How did you add value to the deal?

We took this asset from earning +/- $17,000 per month to $25,000 per month by converting the units to double-occupancy and populating the property with student renters.

What was the outcome?

Cash-out refi where investors received 100%+ of their initial capital back after only 18-months. Even with the new debt, the property's after-debt CF is around $100K

Lessons learned? Challenges?

Be aware of local market dynamics