All Forum Posts by: Dj Hume

Investment Info:

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

Purchase price: $1,000,000

Ravine Apartments

We purchased, Silvertree Apartments in 2022 which was a run down 20% occupied apartment complex that was an eye sore for the city of Silverton (suburb of Cincinnati). The Prosper Construction team redeveloped this building back to it's original glory. We gutted the interior down to the cinder blocks, re-designed the unit layout to fit a more modern lifestyle. From beginning to finish, this project took us 16 months and were 100% leased within 30 days.

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

Off-market opportunity that we were purchasing 50% below market rate

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

Off market

How did you finance this deal?

Regional bank financing with a construction loan

How did you add value to the deal?

We rebuilt this property from the cinder blocks

What was the outcome?

A beautiful, redeveloped apartment complex that is affordable to the community with A+ finishes

Hi @Kenneth P Ford,

I noticed there were a lot of responses of “messages you” so I’m not sure if that is solicitation, but in effort to help you and other reading this - I’ll share experiences from friends in the Dayton market. I’m personally in the Cincinnati area, born in Dayton, but do not invest there at the moment.

I’ve heard solid feedback and experiences from Bridgestream Property Management.

I hope this helps in your management search

Hi @Nathan Frost,

I’ll preface that I don’t encourage going into any inspection to request credits, it usually means your offer is overpriced. That being said, here’s what I would recommend for a thorough DD process:

-Build a plan in advance (setup a spreadsheet, meet with the team, etc)

-be prepared to take a lot of pictures 

-document notes with each room (we use notes on Apple and share it with the team)

-align the team on standardizing information (example: what does “bad” mean, what does “okay” mean, etc - everyone looks at things differently and you want to make sure the notes are accurate during your debrief)

-bring in professionals for things you can see, like sewer lines 

hope this short list helps!

Hi @Michael Morelli, we’ve also seen a reduction of booking and viewings over the last year in Cincinnati, OH due to increased inventory.

What we have done is look at the competition, implement a more robust pricing strategy, and our most effective is to agitate the listing as often as possible!

I hope this helps! Let me know what you find out and what works for you

Welcome to the group @Jeff Love!

I’m located in Cincinnati, OH. I’ve been investing for 9 years now, started when I was 22.

I started in Single Family Homes and House Hacking! If you are willing to make some short term sacrifices, I recommend this type of strategy. Low risk and high reward!

Looking forward to being connected and helping one another!

 I started with Lodgify, what a mistake!

I’ve been with Hostaway for about a year now. I haven’t built it out much, but for what we use it for it’s great.

What did you end up going with?

I spent $13,788 renovating this 1-bedroom apartment
Here's the breakdown 👇

- Kitchen faucet: $99
- Thermostat: $60
- Bathroom hardware: $34
- Toilet: $94
- SS stove: $500
- SS microwave: $200
- SS fridge: $781
- SS dishwasher: $349
- Tile: $390
- Carpet + Pad: $690
- Bathroom faucet: $77
- Bathroom vanity: $189
- Bathroom mirror: $99
- Lighting fixtures: $150
- White shaker cabinets: $1,990
- Cabinet handles: $36
- Blinds: $79
- Black matte hinges: $51
- Black matte door knobs: $108
- Blanco single bowl sink: $100
- Blanco sink rack: $25
- Granite countertop & install: $1,100
- Paint & materials: $328
- Random materials/parts: $259
- Labor: $6,000

Renovation time: 22 days

Previous rent: $700
Signed leased: $1,150


As for calculating my return, here's how I did it 👇

New Rent Change per month: $450 (see rents above)

Annualized Rent Change: $5,400 ($450 x 12 month)

ROI: 39% ($5,400 / $13,788)

New Building Value Added: $90,000 (based on 6% cap rate

I'm choosing to renovate every unit to a premium-level finish with high-quality materials. This should allow me to have fewer maintenance issues in the long run.

How do you think this unit turned out?

Before

After

@Matthew Lee That is the system we use and yes it can be done through Appfolio

@Jon Gorham we have international investors in our deals and always recommend investing as an LLC vs personal name.

In scenarios like this, we connect our investors with our CPA, corporate attorney, and SDIRA representatives as needed in order to answer your specific concerns/situation so you can be most tax efficient.

Most other syndicators should have a similar resource(s) to access

Absolutely @Lee Yoder it's all about taking someone else's problem off their shoulders and taking it on yourself. With a good business plan and the right partners, it can be amazing what you can achieve in a short amount of time