- Purchased for $5.55M, expected sale of $10.8M
- 18% Projected LP IRR
- 7.7% Cash on Cash Return
- 2.0 Equity Multiple over 5 Years
- Acquired December 2024
This property was purchased off-market directly through a broker. The seller built these in 2023, but was not a full-time real estate expert, and missed some areas for obvious improvement from an investor standpoint. With the difficulties in the financial markets in 2024, realizing all his net worth was tied up in this one real estate deal and needing liquidity, he decided to sell. Through a broken sales process with 2 previous contracts not being able to close, we were able to acquire the property at a deep discount, 23% less than it would cost to rebuild these brand new.
We plan to increase the rents on a per-unit basis from $1,375/month up to $1,950/month for 2-bedroom units, which will increase revenue from $580k/year up to $860k/year , and increase the net Operating Income from $341k/year up to $603k/year , which will increase the total value of the property from $5.55M up to $10.8M on a 5 year timeframe. After Renovations are complete, this property should distribute $18,000/month of profitable cash flow after debt service.






