CASE STUDIES
CASE STUDY #1
Bristol Virginia(2021)
Details:
31 unit with a large floor plan. 3 units 1BR 1BA, 4 units 1 BR 1.5 BA,
24 2BR 1.5 BA are the BR and BA details. Purchase $1,550,000. Hold
time – 7 years. Financed with Community Bank at LTV 80%, interest
rate 3.5% and 20 years amortization.
Solution being implemented:
Exterior budget $176,300 and the interior $146,800. Build a dog park, repair decks, roof and gutters. Resurface and stripe the driveway and parking. Countertop, light, bathroom and appliance update. Increase the rent $250 to $300 per unit.
Exterior budget $176,300 and the interior $146,800. Build a dog park, repair decks, roof and gutters. Resurface and stripe the driveway and parking. Countertop, light, bathroom and appliance update. Increase the rent $250 to $300 per unit.
Foreseeable Outcome:
Projected IRR 18.74% and Projected average Cash on Cash 10.1%. Total projected return of investment 114.10%.
Projected IRR 18.74% and Projected average Cash on Cash 10.1%. Total projected return of investment 114.10%.
Case Study #2
Oak Tree Flats, Kansas City , MO( 2022)
Details:
214 units . Range from studio to 2 bedroom boasting over 173,320 sqft. Purchase price $20,510,000 at LTV 65% with 5 years term and with amortization of 25 years. Interest rate 5.85% and 36 months of interest only.
Solution being implemented:
In unit washer and dryers placement. Installing stainless kitchen appliances
and granite countertop. New light fixtures and handles and hardwares. For the exterior, Repair sidings, improve parking and additional lighting. New pool furniture, remodel clubhouse and add light fixtures. This total budget for improvement was $1,310,000.
Forseeable Outcome:
Cash on Cash return of 5-7%. IRR of 17-20%. 2 x equity multiple.
