34 unit Multifamily apartment in Mt. Washington

[Martin Mas]

Investment Info:

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

Purchase price: $2,150,000
Cash invested: $680,000

It is a Thriving Residential sub-market in the Louisville Metro Area
Complex is very well maintained with fairly new roofs
All units have washers and dryer Hookups. Tenants pay all utilities
Rents are substantially (>$200) below market levels

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

The property will be rehabbed and repositioned in a higher price point throughout 2020. Tight market conditions caused by high demand for rental units in Bullitt County, and particularly Mt. Washington, should allow us to attract a different type of tenant, younger, with higher income and ideally, pet owners. Currently 100% occupied but seriously outdated, rents at Mt Washington Square Apartments are significantly below market rents.

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

Driving around for the last year in the area since we already have another properties between Louisville and Indiana.

How did you finance this deal?

We put 20% down.
We got 2 loans. One for the purchase and a second one for the rehab.

How did you add value to the deal?

Ding an amazing property management work.

What was the outcome?

So far we are hitting all targets, increasing rents to targeted prices.

Lessons learned? Challenges?

Awesome experience for all of us.