Truly amazing! It's so cool to see others crush it in real estate 

Congrats @Ben Leybovich ! Excited to keep up with your group and see how you change the property over the next several months!

Originally posted by @Scott Morongell :

Congrats @Ben Leybovich! Excited to keep up with your group and see how you change the property over the next several months!

 We will report back :)

This is amazing! Congratulations!

Update after 1 month of ownership:

- The Gross collected income was $4,000 above the underwriting for Month 1.

- Finished month one with 1 vacant unit.

- The GSR for Month 2 went up $500 for month 2. 

- We've rented 2 units and released 5.  

- Almost done dialing in interior reno numbers. Demoed one unit. Off to the races.

- Experienced some CapEx challenges. Replaced pool filter and some plumbing.

- Exterior reno in full swing now.

@Sam Grooms - anything you want to add? 

Just that we're consistently seeing $150 rent premium on new lease ups for units that haven't been renovated. That's how far below the market the previous owner was. 

Nice, right?

Looks great!
How much do you spend per unit on the interior? Any large ticket items (new panels/HVAC)?

Originally posted by @Konstantin Samorodskiy :

Looks great!
How much do you spend per unit on the interior? Any large ticket items (new panels/HVAC)?

Kostya, HVAC is part of the larger CapEx. It's a separate line item in the underwriting.

$7,500 all in on 1x1 units, which includes new cabinets, appliances, granite, fixtures, hardware, flooring, and paint. We ran a bit light. The scope was $7,300. The overage came due to needing to resurface the bathtub. Not all tubs need it, though, but this one did.

Originally posted by @Konstantin Samorodskiy :

Looks great!
How much do you spend per unit on the interior? Any large ticket items (new panels/HVAC)?

We budgeted in our CapEx to replace 50% of the HVACS (including furnaces). We believe that will be closer to 20-25%, so quite a bit of savings there.

No new panels.

@Sam Grooms & @Ben Leybovich Thank you for this thread and the play by play. Just pure gold from an educational standpoint. I currently work full time (in a non RE field), manage 5 SFR's and then do some small land development deals on the side. Been thinking about diving into a small commercial project, still trying to educate myself on apartments vs. strip malls. Just the one question I want to ask is how do you determine how much supply (i.e. doors) exists in a given area and how much supply is expected to come online during a 6 month, 1 yr and 2 yr period? Say this project you are talking about has a 3-5 year execution timeline. Additional supply can derail things and how do you monitor for that? Thanks for letting me ask a rookie question.

Originally posted by @Tony Sera :

@Sam Grooms & @Ben Leybovich Thank you for this thread and the play by play. Just pure gold from an educational standpoint. I currently work full time (in a non RE field), manage 5 SFR's and then do some small land development deals on the side. Been thinking about diving into a small commercial project, still trying to educate myself on apartments vs. strip malls. Just the one question I want to ask is how do you determine how much supply (i.e. doors) exists in a given area and how much supply is expected to come online during a 6 month, 1 yr and 2 yr period? Say this project you are talking about has a 3-5 year execution timeline. Additional supply can derail things and how do you monitor for that? Thanks for letting me ask a rookie question.

 Tony, the short answer might surprise you - if you are buying an asset which can be impacted by increasing supply, you are buying the wrong kind of an asset :)

Originally posted by @Ben Leybovich :

Originally posted by @Tony Sera:

@Sam Grooms & @Ben Leybovich Thank you for this thread and the play by play. Just pure gold from an educational standpoint. I currently work full time (in a non RE field), manage 5 SFR's and then do some small land development deals on the side. Been thinking about diving into a small commercial project, still trying to educate myself on apartments vs. strip malls. Just the one question I want to ask is how do you determine how much supply (i.e. doors) exists in a given area and how much supply is expected to come online during a 6 month, 1 yr and 2 yr period? Say this project you are talking about has a 3-5 year execution timeline. Additional supply can derail things and how do you monitor for that? Thanks for letting me ask a rookie question.

 Tony, the short answer might surprise you - if you are buying an asset which can be impacted by increasing supply, you are buying the wrong kind of an asset :)

@Ben Leybovich Thanks for the hint. Let me chew on that a little bit. :) I know where to find ya if I get stumped. 

@Tony Sera , Ben is correct in that you'd want to buy in a submarket that supply isn't increasing (ie, no cranes in the air). 

To answer your question about where to find such information, most of the large advisors/brokers have this information for free on their websites. Just look at new construction permits, completions, and absorption rates. 

@Ben Leybovich congrats on this deal. Have seen you guys do a few FB lives while walking through turned units. Looking forward to keeping up with your project and seeing it go full cycle. 

Originally posted by @Scott Morongell :

@Ben Leybovich congrats on this deal. Have seen you guys do a few FB lives while walking through turned units. Looking forward to keeping up with your project and seeing it go full cycle. 

 It's going according to plan so far, Scott :)

@Ben Leybovich @Sam Grooms Congrats on this deal that happened almost a year ago now!  How's everything going so far on the property?  Investors getting their (monthly/quarterly) payments? :) 

As Sam is aware, I'm new to the real estate world and syndication does intrigue me quite a bit as I'm a working professional not looking to leave just yet, but want to create "passive" and not active income streams.  Trying to digest a lot of information through browsing BP forums, podcasts, and posts and various other resources.  

Originally posted by @William Kim :

@Ben Leybovich @Sam Grooms Congrats on this deal that happened almost a year ago now!  How's everything going so far on the property?  Investors getting their (monthly/quarterly) payments? :) 

As Sam is aware, I'm new to the real estate world and syndication does intrigue me quite a bit as I'm a working professional not looking to leave just yet, but want to create "passive" and not active income streams.  Trying to digest a lot of information through browsing BP forums, podcasts, and posts and various other resources.  

Everything is moving right along. Most of the common area and exterior projects have been completed. We have painted the property, finished the landscaping, added a fitness center, updated the laundry room, renovated the pool area, and rebranded the property. The office remodel and business center will start next week.

As for the interiors, 25 units have been renovated, all of which are leased at or above our projected rents. In fact, most units are preleased before the renovation is complete. We haven't received any push back from the marketplace on our post-renovation rents, so we recently increased them another $30 on average. 6 more are currently being renovated.

Here is a graph from last month's reporting showing NOI since we took over.

@Sam Grooms That's awesome, Sam.  And thanks for sharing.  Glad to hear things are progressing well.  Hope to invest in syndications sooner rather than later!

Here are some before and after pics, too. 

@Ben Leybovich Beautiful find. It sounds like there will be plenty of upside!

Originally posted by @Rodney Robinson :

@Ben Leybovich Beautiful find. It sounds like there will be plenty of upside!

 Thank you. We inherited an average monthly income of about $60,000. In March we hit $69,000 with 19 renovated/leased units. That's $470 bump per unit. Shooting for $80,000 GOI by the end of Y1.

I can't believe this thread is still alive. We closed on another one about 3 months ago. And now about to close yet one more. The numbers are all very similar.

@Ben Leybovich thanks for sharing. I must be late to this thread. Great success story. 

Purchased 20 months ago.
- 98 Units in Phoenix
- Purchase Price $8.15M
- Renovation Budget $1.5M
- In-place Income $60,000/mo.

Current

- Revenue $86,000
- T-12 OpEx $430,000 ($36,000/month)
- Community Reno complete
-49 Interiors Complete.
- 1 interior in process
- Remaining LTL in classic units $14,000

This has been a challenging lift. The property was a disaster when we got it. But, it has definitely turned the corner and is operating more or less stabilized.

We will finish the renovations within 12 months, and we project being able to hit $100,000+ revenue. We started with NOI of $25,500, which means this property was negative cash flowing for a while. The NOI is at around $50,000 today, with another $14,000 to come from capturing the classic unit LTL.

#ThisIsValueAdd :)