71 unit success!

[Nate Shields]

We just closed on a 71-unit apartment complex, our largest purchase to date. We bought a 55-unit last year in the same market, a market we've been investing in for seven years.

How we found it

Our property manager brought us this opportunity (and the three previous as well). PMs can be a goldmine of information, connections, and opportunities. We have always reminded him that we're buyers and it's worked!

How we funded it

This was a single asset syndication. We raised $4.5 million in equity and got $4.5 million in fixed rate debt from Freddie Mac at a 5.85% rate. You read that last sentence right. We put 50% down. This has been our strategy lately with higher interest rates. It hedges any downside risk and increases cash flow. If rates become more favorable in the future, we'll have an opportunity to refinance.

Why we bought it

The 55-unit I mentioned earlier is a perfect comp for us. The builders shared the same blueprints so both properties are 2 bed/2bath. We are starting to get $1,200/month there. The current average rent on the new buy is $925. Lots of room to get to market rents.

What's next?

We will continue to buy in this market. It has great fundamentals, growth, and affordability. If you'd like to invest alongside us, please visit our site and sign up for our newsletter. We'll keep you in the loop for future opportunities.