Secured 50% LTC construction loan. Vacated entire property, repainted exterior, resurfaced parking lot, installed new roofs and AC units, completed unit renovation program (drywall, interior two-tone paint, 16” travertine tiles throughout to reduce turnover cost, new appliances) and installed wireless internet and DirecTV at an average cost of $8,000 per unit.
95% occupancy in 65 days following 90 day renovation, 31% increase in rents, full security deposits achieved, 10-year 4.5% interest rate, 60% Loan-To-Value commercial loan attained and returned 32% initial equity to partners upon refinance.
35% leveraged Return on Investment, 29% Cash on Cash on a 10-year average. Ahead of proforma.
Purchased for $700,000 in early 2013, renovation budget of $350,000. Appraised value at refinance in August 2013 was $1,320,000 and current estimate of value is $1,500,000.