Our Past Deals
San Antonio, TX
Nexus Urban Living
75-Unit Multifamily
- Purchased for $6.85M, expected sale of $12.4M on year 5
- 17.4% Projected LP IRR
- 25% Increase in Rents per unit
- Acquired November 2022
We came across this property through our broker relationship. The previous owner had been trying to manage this property from New York, with a management company based out of Austin, and no local San Antonio presence. That had 30% vacancy, had not been able to raise rents in line with the market for 4 years, never had any staff to occupy the leasing office, and most units had some level of maintenance issues that the owner had no budget to fix. The previous owner had even started missing mortgage payments. Because of the seller’s financial distress and mismanagement, we were able to purchase this property about 30% cheaper than typical comparable properties were trading for in San Antonio. After a few months of completing the maintenance backlog, updating the marketing, and putting in place sharp performing managers locally, were were able to increase rents from $830/mo up to $1,250/mo, which across 75 units will increase the value of the property by around $5.1M on a 6.0% cap rate valuation.
Gonzales, TX
Harmony Village
32-Unit Multifamily
- Purchased for $1.7M, expected sale of $3M on year 5
- 21% Projected LP IRR
- 32% Increase in Rents per unit
- Acquired April 2022
This was our first flagship purchase. We acquired this property by purchasing it from a wholesaler. The previous owner had owned this property for 10 years, but lived an hour away in Austin, and had not visited the property for years. The previous owner had delegated everything to their property manager, who had unfortunately stolen $70,000 before being discovered since they were not keeping an eye on it. Frustrated, they sold the property to us for approximately 35% lower than similar comparable properties in the area. Our team was able to go in, place and train new management, spend about $11,000 / unit on interior upgrades, install new signage, new shade structure, grills, patio furniture, and fix the potholes in the parking lot to turn the complex around. We were able to increase rents from $650/month up to $975/month while keeping costs low. Across 32 units, we raised the value by $1.3M on a 6.5% cap rate valuation, and the property is producing $14,000/month of cashflow after all expenses and mortgage payments.
Starlight Horizon is the Crown Jewel in the portfolio. We came across this property through our broker relationship. The previous owner had held this property for 10 years as an underutilized mobile home park. We saw the potential for the property to be turned into a modern cabin short-term rental destination. Including purchase price, closing costs, and the $1.1M renovation budget, we spent all in about 30% less than comparable short-term rentals in the area and include more amenities than the competition can offer. We are in the process of installing a pool, clubhouse, upgraded lighting, signage, and premium interior renovations for each cabin to turn it into the most Instagramable destination in Canyon Lake. With these upgrades, each cabin should generate around $3,500/month in revenue. Across 13 units, that will raise the value of the property up by $2.8M on a 9.5% cap rate valuation, producing $18,000/month in cashflow after all expenses and mortgage payments.
Canyon Lake, TX
Starlight Horizon
13 Short Term Rental Cabins
- Purchased for $1.9M, expected sale of $5.7M on year 10
- 20% Projected LP IRR
- 86% Increase in Rents per unit
- Acquired September 2022
Dallas, TX
Legends on Storey Lane
12-Unit Multifamily
- Purchased for $850k, expected sale of $1.5M on year 5
- 22% Projected LP IRR
- 45% Increase in Rents per unit
- Acquired November 2022
Legends on Storey Lane is our team’s passion project. We came across this property directly in communications with the seller through our outbound networking efforts. Their main comment about the property is that they are non-profit owners, and really not in the real estate game. They thought it would be beneficial to own the property long term, but after problem after problem with property managers not communicating, general contractors walking out on them, and struggling to find good tenants, they threw their hands up and were thankful we were able to take it off their hands “As Is”. We were able to purchase it 40% below what comparable properties in the area were trading for. By installing new fencing, lighting, signage, painting custom murals, and spend about $17,000/unit in upgrades to be able to increase the rents from $900/month up to $1,495/month across 12 units, raising the value of the property by $900k on a 6.0% cap rate valuation.
Our team purchased two properties in Round Rock: a 20-unit property for $2,500,000 (iConic Downtown) and a 32-unit property for $4,800,000 (IConic at Round Rock) for a combined total of $7,300,000, or roughly $140,000/unit. The seller financing we negotiated was the key to making this a successful deal. The seller agreed to a 5-year interest-only loan for $5,400,000 with the interest rate at 4% year 1, 5% year 2, 5.5% year 3, 6% year 4, and 7% year 5. This financing style is a creative way to get deals done and boosts cash flow to our investors to ensure a successful project. After renovations and improvements, we should be able to increase the average 1 bedroom rent from $1,004/month to $1,250/month, and the average 2 bedroom from $1,264 to $1,550/month. This will allow us to take the Net Operating Income for the property from $310,188/year up to $520,433/year by the end of year 2 which increases the value from $7.3M to $10.4M on a cap rate basis.
Round Rock, TX
iconic Round Rock & iconic Downtown
20-Unit Multifamily & 32-Unit Multifamily
- Purchased for $7.3M
- 17% Projected LP IRR
- 21% Increase in Rents per unit
- Acquired August 2023