TownSquare Apartments East Tennessee

[Tom Kirkpatrick]

Investment Info:

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

Purchase price: $450,000
Cash invested: $100,000

13-Unit Apartment complex with 2 buildings in downtown Jefferson City. Great location walking distance to Carson-Newman University. Value add investment with increase in rents and fees of approximately $200/unit/month.

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

Scale with multifamily. It was 1 mile from my house.

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

MLS listing, negotiated seller financing with better terms than were available in the market.

How did you finance this deal?

20% down seller financing through Promissory Note.

How did you add value to the deal?

Painted all interior surfaces, new flooring where needed. new light fixtures, new plumbing fixtures. Implemented utility charge and pet fees. Outsourced laundry room equipment and service.

What was the outcome?

Still ongoing. Considering cash-out refinance currently.

Lessons learned? Challenges?

The value of properly screening tenants prior to renting. Had to run off 1/3 of tenants and upgraded tenant base. Very stable after that.