Secured 75% LTV loan and vacated existing tenant base. Completed a full fledge property reposition program. Upgraded electrical system and plumbed in washer/dryers in each unit, installed new roofs and replaced wall units with full HVAC units. Completed vast landscape improvements, installed private patios, and repainted exterior with assistance from professional design firm. Interior two-tone paint, wood tiles throughout, new kitchen cabinets, countertops, new black appliances, and all new bathrooms at an average cost of $35,000 per unit. Turned a Class C rundown property into a Class A property supported by very attractive neighborhood dynamics.
95% occupancy in 12 months with completely upgraded tenant base, 100% increase in rents in the second year, full security deposits achieved. Cash on Cash returns went from 3% when acquired to 11% upon stabilization in Year 2.
19% leveraged Return on Investment, 12% Cash on Cash on a 10-year average.
Purchased for $795,000 in 2016, renovation is approximately $700,000. Current estimated value is $1,100,000.