Commercial Real Estate

First Apartment Investment Update: Increased Rental Rates & Occupancy [Video!]

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[Check out my original article to see the beginning stages on this project.]

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First Apartment Acquisition Update: Increased Rent & Occupancy

Through interior and exterior improvements, we were able to increase the rent by $80. The occupancy is now 75%, up from the original 50%. Unfortunately, the number of tenants who either skipped out or could not maintain paying rent after possession was higher than anticipated. This was a good indicator that the seller potentially loaded the property with unqualified tenants, but luckily, those units were quickly renovated. Marketing efforts include a dedicated website, as well as leveraging social media. Building an online presence helped to bring exposure to the property.

Overall, it always helps to purchase cheap and underwrite conservatively to ensure you do not get yourself in a bind on these deals.

Any questions about this deal? Have you made your first apartment purchase yet?

Let’s chat below!

Sterling is an multifamily investor specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling w...
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    David Roberts from Brownstown, Michigan
    Replied over 2 years ago
    Nice. Thx
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    You’re welcome.
    Trevor Rutherford Wholesaler from Dayton, Ohio
    Replied over 2 years ago
    Nice job Sterling. How did you manage to start using crowd funding?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    By growing a investor network.
    Ty Little from Spring Lake, North Carolina
    Replied over 2 years ago
    Great video Sterling. Love the explanations you provide and the updates as you progress. It’s definitely teaching me. Thanks.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Thank you for the kind words. What was the biggest takeaway from the above video for you?
    Jerry W. Investor from Thermopolis, Wyoming
    Replied over 2 years ago
    Thanks for the article Sterling. Very nice property you have there.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    No, thank you. I’m hlad to hear the breakdown brought you value.
    Kevin Leonce Investor from Atlanta
    Replied over 2 years ago
    Thanks for the update Sterling. Congrats with your progress thus far and I wish you more success as you move forward. Keep us updated.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Thank you for the kind words. I will keep the updates coming.
    Richard Potts from Austin, Texas
    Replied over 2 years ago
    Impressive! Thanks for the walk through, Mr. White.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    You’re welcome. Reply Report comment
    Joseph Williams Rental Property Investor from Richmond, VA
    Replied over 2 years ago
    Get it Sterling! Love the passion.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Thank you! What was the biggest takeaway for you, Joseph?
    Robert Bates Investor from New Orleans, Louisiana
    Replied over 2 years ago
    Great video Sterling, you have really motivated me. I have a few questions. 1) what was you portfolio like before you took on a apartment complex. 2) what type of funding did you use. 3) what type of management and accounting software do you prefer. Thanks again for the shared knowledge
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    1) Portfolio was all single family 2) seller financing. Seller carried back $700k. My partner and I put down 200k 3) propertyware
    Charles Morris
    Replied over 2 years ago
    Sterling, this looks to be a nice property. What state and city are you in? How many units are in the complex? What is the average square footage of the property including living areas and lot size? What were the acquisition costs? Are you within range of schools, public transportation and markets? Is this a buy-and -hold project or one that you plan to sell or exchange in the near future?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    See original article here https://www.biggerpockets.com/renewsblog/multifamily-apartment-building-case-study/ . That should help with answering your questions.
    Joslynn Crutchfield Real Estate Agent from Rural Hall, North Carolina
    Replied over 2 years ago
    Congrats! I look forward to more updates!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    I will keep them coming.
    Jacob Kelley from Naples, Florida
    Replied over 2 years ago
    Great video man! Watching you succeed excites me and I hope one day I can do what you have done. I hope you can get less than 10% vacancy rate soon enough.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Thank you for the kind words! Im glad my story brought you value. Happy investing!
    William Randolph Investor from Hampton, VA
    Replied over 2 years ago
    That looks like Holdfolio Indiana 9 – I’m invested in that deal! Looks good and keep making money. Also you should think about sending that video out to the investors that may not see it on BP. Well done!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Great suggestion! I am glad you got to see the changes.
    Anthony Woods Rental Property Investor from Corona, CA
    Replied over 2 years ago
    Hi Sterling I am very interested in crowdfunding how to start it and how to use it
    Holly Baum Real Estate Agent from Loveland, Colorado
    Replied over 2 years ago
    Great video Sterling! Do you guys plan on self managing?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Yes. It is under our management at the moment.
    Benjamin C Finnigan from Kissimmee, Florida
    Replied over 2 years ago
    Really inspiring! I look forward to posting my own post renovation video soon!
    Laurel Devine Investor
    Replied over 2 years ago
    Thumbs up! Thank you for sharing. Very interesting how you turned this around.
    Christie Gahan Wholesaler from Hillsboro, Oregon
    Replied over 2 years ago
    Hey, Sterling! You mentioned upgrading the electrical outlets. Is this a cosmetic thing ? Did you actually change any wiring ? Thanks.
    Shane Humes Investor from Wadsworth, OH
    Replied over 2 years ago
    Very impressive Sterling. How did you find this property? Did you have to push the seller to accept seller financing? I’m curious about seller financing. Is there a typical interest rate you pay the seller? Thanks for the video. Inspirational.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    The property was acquired off market. I called the seller directly. I found his information from public records. I searched the tax billing address and it pointed to his current business, which I called that number to get in touch with him. Yes we pushed seller financing and the interest rate is all negotiable.
    Sam L. Rental Property Investor from Joliet, IL
    Replied over 2 years ago
    Sterling, blue porches defiantly wouldn’t be my first choice but the place looks awesome. I love the BBQ feature. Keep on hustling!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 2 years ago
    Thank you for the kind words! Happy investing.
    Philippe Johnson Real Estate Investor from Bradenton, Florida
    Replied over 2 years ago
    Thanks for that Sterling! Definitely helpful.
    Jay Hill Investor from Pittsburgh, Pennsylvania
    Replied over 2 years ago
    Sterling, Impressive. I just purchased my first multifamily but leaning toward acquiring more doors this year (thanks to your inspiration).
    Reggie Greene Investor from Indianapolis, Indiana
    Replied over 2 years ago
    Nice video, adding the grill and picnic tables was a true value-add along with other improvements made. Increase in rent was justified. Great deal…I look forward to making similar MF acquisition.
    Michael Hayes Realtor from North Olmsted, OH
    Replied 7 months ago
    Great video - I was looking up apartment deals when I came across your thread. Thanks for sharing!!