17 unit apartment building Downtown Harrisonburg, VA

[Cassidy Burns]

Investment Info:

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

Purchase price: $1,380,000
Cash invested: $400,000

17 Unit Apartment Building
*11: 2 bed/1 bath
*6: 1 bed/ 1 bath
-Value Add Opportunity
-Current Monthly Rent Roll $11,355/month
-Projected Rents: $14,400/month
-.2 miles from James Madison University (not college housing)
-Great location (on main st)

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

Value Add:
All rents are $150-$225 below market value
100% Occupied
Only 5 units need slight renovation
Growing area

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

Broker brought the deal to me

How did you finance this deal?

72% Bank Financing
28% Equity (I brought 40% down payment, others raised through equity partners)

How did you add value to the deal?

24 month rent increase plan. Bringing rents to market value. Slight renovation of 5 units

What was the outcome?

TBd

Lessons learned? Challenges?

Had to appeal flood plain insurance claim (won)
Lender increased Equity needed 1 month before settlement
2 Investors backed out due to COVID

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

Yes , Cottonwood Commercial