Vacated the long term apartment tenants immediately. Engaged a team to create a modular floorplan to achieve maximum flexibility to lease as short term rentals. Vacated the retail tenant on the first floor and plan to lease to a coffee shop or complimentary use to upstairs short term guests. Additionally, add 2 studio lofts on ground floor to maximize residential income.
The property was acquired at a 40% discount to comparable buildings in the area with an 83% LTV bridge loan. Proforma revenue calls for a quadrupling of revenue by addressing a market need for short term rentals in the rapidly growing area.
60% of capital returned to investors after 12 months. 25% Leveraged Return on Investment, 7.7% Cash on Cash on a 5-year average to investors.
Purchased for $1,170,000 in 2016. Appraised for $1,400,000 in escrow and has an estimated value of $2,200,000 at prevailing cap rates upon business plan is execution.