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Port City Commons
Cozy townhomes located near downtown Wilmington.
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.
Key Points
TypeTownhomes
Detail10 Homes
CoC Yield 34%
Return/year 126%
Equity Mltpl 9.82X
Resale $1.35M
Investment Summary
Initial equity$118,000
Purchase price$590,000
Debt$472,000
Renovations$0
Total cost$590,000
Resale price$1,350,000
Gross profit on resale$760,000
Number years held7
CoC yield34%
Equity multiple9.82X
Appreciation p/year92.01%
Return p/year126.01%
