In today’s episode, I peel back the curtain on a 170-unit deal that I just got under contract, with an expected valuation of $14M.
Listen in as I breakdown the deal, including how I secured it off-market, the $1.1M CapEx plan, and how I was able to raise $7.5M in only 90 minutes!
The best part is, we only needed $2.5M to fund this property, so now our next two deals are fully funded as well.
Purchase price: $9M 170 Units Price per door: $52,900 $1.1M CapEx budget Unit Turns: $877K
- 56% of the units needs a full turn ($7,500/unit)
- 20% of the units needed a ½ turn ($3,000/unit)
- 24% of the units are make ready ($1,500/unit) Exterior
- $25,000 for roofs
- $20,000 for driveway sealing & striping
- $37,800 to paint (13 common spaces @ $3k/space)
- $50,000 for exteriors, yard, fencing, dog park and pavilion
- $90,000 buffer $270,000 acquisition fee (3%) $300,000 in soft costs (closing, legal, title, survey, appraisal, pre-paids) All-in for $10.6M Rents are 20% under market value. Plan to improve units and increase from $700 to $880 over a 3 year period $300,000 of tax-free refi proceeds Expecting $900,000 a year of net operating income and 6.1 cap rate Expected Cash flow: $240,000/year Investors get 10% preferred return + 1% equity in perpetuity $14M+ valuation. Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/238
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