Vue On Danville (36-Unit Apartment)

PURCHASE: $1,580,000

FINANCING: Raised Private Money for 25% down payment plus rehab and holding costs with a 3-5 year term.

REHAB: $400,000

STRATEGY: VALUE ADD MULTIFAMILY (COMMERCIAL BRRRR)
Addressed deferred maintenance, problem tenants, and increased below market rents. Full renovations of each kitchen and bathroom and replacement of all original windows.

EXIT STRATEGY: Turn each unit one by one increasing rent by ~$150/door, increasing overall NOI and valuation. Cash out refinance pulling out initial investment to pay private lenders.

SUCCESS: Turned all units, increased rents to market, while maintaining 90% occupancy, and property has a new valuation of ~$3,700,000. Partners have the option to cash out and hold, or disposition and a high net gain.