DVP Actions:

70% LTV loan attained on a 5 year fixed term. Expanding fence line to create backyards for 1st floor tenants, installing exterior lighting, provided security screen doors, serviced every air conditioning unit, minor landscaping upgrades, and completing interior renovation program (two-tone paint, new flooring, new bathroom vanities/toilets, adding 3-4 ceiling fans per unit, installing washer-dryers in select units, and new appliances at an average cost of $5,000 per unit).

Results:

In process.  Have achieved an average increase of 31% in rental rates with full security deposits on completed units.  Cash on Cash returns are anticipated to go from 2% when acquired to 8.5% upon stabilization.

Projected Returns:

15.3% leveraged Return on Investment, 8% Cash on Cash on a 10-year average.  Ahead of proforma.

Purchased for $980,000 in May 2015, renovation is approximately $81,000.  Current estimated value is $1,000,000.