Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
Reached a major milestone after nearly a year and a half....converted my construction loan to permanent financing!!! On 5/31/18 we closed on a 20 unit property that was 100% vacant and in need of lots of love! We added washer/dryer connections to all units and ductless min split heat pumps. Full stainless kitchen appliances including above range microwave. Textured all walls, painted all brown woodwork, new flooring, all new plumbing fixtures and toilets, bathtubs as needed, water heaters as needed....we did a lot!!! For a first time project i'd say we learned a lot and although the project took twice as long to complete as we planned, it's still a huge success! We are currently 85% occupied and 95% leased and expect to be 100% before end of year! This form definitely helped me get through some rough patches either by reading through others posts or posting my own questions. Now I'm asking myself what's next, lol! I'm hooked
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Tab Teehee
Wow! Great job. Very impressive. And some mighty ugly before pics. Would you classify this as a “B” property now? What size are the units and how much rent? Curious why you went with stainless steel appliances. I know it obviously looks better, but was the price worth it?
Last question; any other things you’d do differently?
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Tab TeeheeSuch a great story Tab! Took some guts to tackle that. It was such a zero to start what convinced you that you could tackle it? I mean you saw value, yet the place looked to become a tear down; how long had it been empty? How long did it take you to work all the numbers and timeframes to realize there was a path to success and cash flow? What an accomplishment!!
Rental Property Investor · NW Arkansas · Member since 2016 · 15 posts · 7 votes
6y
@Tab Teehee any thought given to a partner to develop your dream? I currently invest in NW Arkansas and am looking for something new. Might be an interesting conversation sometime....
Rental Property Investor · 95660 · Member since 2018 · 46 posts · 17 votes
6y
Thanks for sharing. Well done on the whole project. The before pictures really show just how far you had to go. Finished project looks great. Adding washer / dryer hook ups was a really good add. I bet you got a good return on that part of your upgrade/investment.
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
Good stuff. I have found that 20 is a critical number in a lot of ways for people. Most of the client we used to manage would find out if they 'bought right' when they reached 20. It's enough units that when the rough patch hits in the portfolio, their leverage shows up. If they bought right, they are fine. If not, it gets ugly.
Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
6y
@David Barnett
Yes it was scary and overwhelming at times, but once you commit you gotta see it through! The buildings had good bones, very well constructed structurally....solid foundations, perfect concrete slabs, crazy strong framing 2X12 joists on 16" centers with 1-1/8" plywood sub floors.
Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
6y
@Anthony Wick
I would guess it's a class B property....in a rural area with not much to choose from, I'd like to think they were some of the nicer units available. I've spoke with some of the residents and were told that after they looked at what was available they like our property because it felt less apartmentish, lol! I agree with that statement because of things like the stainless appliances and nickel hardware on cabinets and doors, and also the paint colors.
The decision to go with SS appliances was made to try to give us a competitive edge with area inventory and the cost wasn't much more of anymore than black would have been. I shopped online for bulk appliances...100 appliances on one order and got the best price I could, I then went to a local appliance dealer with those model numbers and said "see what you can do" and they actually came close to the online price but when you factored in the local sales tax it added thousands more to the price! Then I went to Lowes and negotiated an even better deal and even after paying tax wound up paying less than the online dealer and had free local delivery and kept the $$$ in the community so a win for everyone! Lowes even sold me all the appliance accessories like range cords, washer hoses, dryer vents, etc. for a flat $10 each, which in some cases was more than half off the in store price!
Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
6y
@Ray Bansel
This was an off market deal in which I had some previous knowledge of. It was being sold to settle an estate and had to sell at appraised value in as/is condition. Judging from what I've seen on loopnet, I believe I got a pretty good deal, even if it did take 1.5 years and 400k in improvements!
Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
6y
@Bjorn Ahlblad
Thanks for the nice words!
Being from a construction background I knew the place had strong bones and lots of unrealized potential! The location was also a huge factor...if this property would have been in an urban setting it may not have been as appealing.
Being that this was my first venture into the multifamily world I started reading posts on BP, listening to podcasts like Jake and Gino and Michael Blank and Grant Cardone. Used all the investment calculators I could find, lol! I put a lot of faith in my management company as far as what they felt the market rents would be and their ability to fill the units with qualified residents.
Rental Property Investor · Lake Suzy, FL · Member since 2018 · 171 posts · 216 votes
6y
@Tj Hines
Thanks for the congrats! It was definitely a storm and not for those faint of heart with weak stomachs, lol!
I'm definitely hoping it pays off! I see your in Tampa, I'm about an hour and half south of you, near Ft. Myers. Would like to invest closer to home....been looking a little