26 units on 26 acres!

[Greg Miller]

Investment Info:

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

Purchase price: $1,200,000
Cash invested: $280,000

Purchased in July, this 26 unit apartment building sits on 26 acres in the Village of Pulaski. We have been working diligently at transitioning all tenants into the 21st century with ACH payments and using an online portal for maintenance requests. We have also leased vacant units and turned over some of the most challenging tenants and begun implementing our unit quality standards. We have cleaned out the three (3) outbuildings and consolidated storage into the upper garage. This sets us up for future rental of the large pole barn. The third outbuilding (former apartment unit) has been cleaned and considered for complete renovation to become unit number 27 as a short term rental in 2022. We have renovated one unit and successfully proven the business plan to rent it out at a daily rate as a short term rental during peak salmon river fisher season. Early results have been so impressive that we are likely to transition additional units to short term rentals at turnover.

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

Acreage, existing cash flow, value add opportunities

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

On market - looked at another listing offered by seller and was directed to this listing.

How did you finance this deal?

Commercial bank financing 80% LTV

How did you add value to the deal?

Renovate and convert units to Short Term Rentals (ongoing). Clean up common areas and outbuildings for additional revenue opportunities. Bring tenant experience online to streamline management.

What was the outcome?

Ongoing - so far so good!!

Lessons learned? Challenges?

Retraining tenants is hard. Owning property 60+ miles from my house which has coin operated laundry facilities is likely unsustainable :)....