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Updated almost 4 years ago,
Sharing our Las Vegas 22 unit deal details! Anyone in Las Vegas?
My husband and I (Higher Point Investing) and our partners (Camino Group) just closed on a 22 unit in Las Vegas. Our partners are boots on the ground in Las Vegas and are currently working on their fifth property all in the same neighborhood. We have been able to join them in three of these. The one we are talking about here is the second one and we now have a third under contract.
We have two active military children so this property really has a place in our hearts as it is fully master leased to US Vets organization. We have two more years on the contract with them which means 100% occupancy and 100% rent paid! This gives us and our investors great confidence in these uncertain times.
Deal specs just to share:
Purchased at $1,700,000
Capital we raised $730,000
Year built 1962
Class C
Mix of Studio, One-Bedroom and Two-Bedrooms
Got it at $77K per unit
Putting $35,000 in for renovations
We are doing a 6% preferred with our investors to be conservative with monthly distributions.
Projected 5 year return: 15.65% IRR
Investor multiple of 1.94
Hold time 3-5 years depending on market.
NOI: $119,718 = The master lease is for $16,000 per month - 42.72% on expenses
Did 65% LTV
Investor (LP) 70% - Managing Partner Group (GP) 30%
Plan: at the end of year two when the master lease is up we will increase to current market rates (and hopefully renew the master lease) which will take it to a COC of 9.47%, sell at Year 5 for $2,425,300. But on our last property out there we had so many people coming to us out of the blue to purchase the property for such a profit we sold early so we will see.
Anyone else investing in Las Vegas and/or syndicating out there? We would love to connect!
Ken and Rachael Wick