Portfolio of 5 apartment buildings spread across 4 towns in southern Minnesota totaling 96 units. All of the communities have historically had a shortage of affordable housing, with prohibitive costs to build, these shortages will continue.
This portfolio has been poorly managed, has deferred maintenance, and an overall poor class of tenants, with rents substantially below market. This creates a portfolio that has significant upside potential to purchase at an affordable price, perform the value add renovations, put in place excellent management, significantly increase revenue and have long term cash flowing property diversified in different communities.
In one year of ownership, we were able to quickly perform renovations, and double the revenue the property was producing on a consistent basic.
Hold duration: Long term hold 10+ years.
Purchase Details:
Price: $2,000,000
Occupancy: 65%
Monthly Revenue: $25,000
Current Financials:
Occupancy: 95%
Monthly Revenue: $55,000+
NOI: $264,000
Valuation at 9 cap rate: $2,900,000+
Equity generated: $900,000+
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Short Description:
Long term hold
Cash on Cash Return 10-12%
Equity Multiple - 1.5X - City, State: December 2021
