I purchased a similar product in Akron Ohio in Aug of 2017. Average rents for the 24 one bed 1 bath units were sitting at $450.00 average rents. We had 14 out of 24 that were on section 8 at purchase. Fast forward, over 4 years later and through covid, we were lucky we had those Section 8 residents and kept pushing the rents along the way. Now the section 8 rents are hitting $655 and that is what we are charging new non-section 8 residents too. Our inherited residents have gone up a little slower over time and they sit at about $600 average right now in their way up in the next 6 months to those $650.00 a unit rents.
Please feel free to message me and we can talk. I told my story on Podcast 238 and I am now in the period I call the harvest period for my 9 apartment complexes. This property will be the next one I refi. We purchased about 4 yrs ago that 24 unit in Akron for $635,000 and with downpayment we are all in at $180,000. The current valuation is hovering between 1.4 and 1.5 million. We have about $380,000 debt on the property. Our cash flow averages about $4,000-$5,000 a month currently. We have been repositioning it and after all rents are over $625.00 average for the entire complex we will pull the trigger on the refi for a Freddie non-recourse and take out at least $700,000 cash back tax free and be on a non-recourse 10 year fixed loan at about 4%. We may or may not decide to do the first 2-3 yrs of that loan interest only. The last two we refinanced ant too out a ton of cash, one we did first 3 yrs interest Only and the other we chose not to do any interest only period. One was fixed for 10 years at 3.6% and the other 3.9%.
I can’t wait to talk to you!! I could also talk to you about what I do at takeover with the tenants too and that plan you have to raise those rents at takeover. Why reinvent the wheel!!
Swanny
BP Podcast Guest 238
