DVP Actions:

Repainted exterior, added private patios, created common area with BBQ and picnic tables, replaced/repaired air conditioning units, added wireless internet, installed screen doors, minor landscaping, and began unit renovation program (interior two-tone paint, tile flooring on first floor and vinyl wood flooring on second floors, ceiling fans, new vanities, and new appliances at an average cost of $2,900 per unit).

Results:

24% increase in rents in the first year, full security deposits achieved, 65% LTV commercial loan attained. Cash on Cash returns went from 5% when acquired to 11% upon stabilization.

Projected Returns:

16% leveraged Return on Investment, 9-11% Cash on Cash on a 5-year average.  Ahead of proforma.

Purchased for $800,000 in 2012, renovation budget of $110,000 is underway.  Current estimated value is $1,050,000.