Immediately installed a high-quality on-site management team, vacated problem tenants, recovered unutilized space in rear to bring online another RV stall and $5,000/year in revenue, repainted apartment exterior, modernized washer/dryers, installed wireless internet, minor landscaping, and completed minor unit renovation program.
95% occupancy in 5 months with higher quality tenant base, 10% increase in rents in the second year, security deposits achieved, 82% LTV seller carry-back loan secured. Cash on Cash returns went from 5% when acquired to 18% upon stabilization in Year 2.
29% leveraged Return on Investment, 19% Cash on Cash on a 10-year average. Ahead of proforma.
Purchased for $515,000 in 2014, renovation was approximately $20,000. Current estimated value is $675,000.