This property is an off market deal. The underlying fundamentals of the area, the cashflow, and the market are ideal. This property was put under contract at the lowest point of the hotel market cycle (the first time in 10 years that the market declined), at a very strong double digit cap rate. As the market rebounds, we expect to make high amounts of appreciation, while receiving good cashflows.
This property was located in a market where rent has been seeing up to 20% increases per year. The property is severely under market on its rents. Our plan is to repair the property, and raise the rents several hundred dollars per unit, hold it for a few years, then sell it for profits.
This property was in extreme disrepair. We replaced the entire electrical systems, all plumbing, interior electrical, HVAC, and vent systems. New siding, facia, soffits, roofs. New windows. Many major concrete repairs and reconstruction. Interiors on 50 units were gutted, many down to the studs, and rebuilt entirely. Rents were increased from as low as $700 up to $1400 on renovated units. The property was held for several years, then sold for a large profit.
This property was severely under market on rents when we acquired it. In addition it had severely differed maintenance. We replaced all the roofs, the asphalt, the siding, and painted all of the buildings. We took the rents from as low as $600 per unit, to over $1100 per unit. The property was held for several years, then sold for a large profit.
A bulk purchase of 10 townhomes in a 24 unit community were purchased distressed from a bank. The bank had repossessed the assets from the prior owner, and the management firm working for the bank was severely mismanaging the assets. We purchased the assets, evicted bad tenants, did some minor cosmetic repairs, raised the rents several hundred dollars, then held the assets for a few years collecting rents, before selling the bulk portfolio and cashing out profits.