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
RCB bank provided the initial purchase/construction financing and also converted to perm financing when construction was complete The initial construction was term was 12 months, interest only at about 5.75%...due to delays dealing with contractors, etc., RCB extended loan to 18 months. They were great to work with
Very smart and even though you could have received better terms it will be hard for this bank to say no to you in the future. Did their construction loan fund the 21k per unit and holding costs or did you project for that with your own cash reserves?
I struggled a bit with the terms, however I felt the relationship I had built with the bank was important and considered it an investment for the future.
Me being the newbie that I was/am, didn't really factor in the holding costs, but to answer your question, that 21k per unit included holding costs, first year insurance, travel, etc.
Snow removal isn't a typical issue to have but the mowing season runs from about mid march to mid october and i'll be getting more bids this season but we were around $100 per week for mowing and weekly dumpster is $75 monthly
Congratulations on this project. I'm a bit late but read through all of your responses on this posting. So cool to see such an undertaking at a distance turn out so successful. My wife has family in the Tulsa area. We have been chatting about a JV project in his area. Again, so happy to see your success in this project. Way to go.
Congratulations on this project. I'm a bit late but read through all of your responses on this posting. So cool to see such an undertaking at a distance turn out so successful. My wife has family in the Tulsa area. We have been chatting about a JV project in his area. Again, so happy to see your success in this project. Way to go.
Thanks Justin! I may have a JV opportunity coming up there soon! I'm just now beginning some discussion with an architect/planner for the development of 27 acres around the apartments.
Great!! Thank you for the posting. Since now you are out of State investor from Florida, are there any other reason you picked that particular deal besides that you were originally from the State? Just curious.
Well, the numbers worked, and the presence of Googles data center was a factor also. It has given me the confidence to look into other states but I still feel like I have a lot to learn.
@Tab Teehee Wow! You are truly an inspiration - when you pick a project, you don't mess around! The 'after' pics of these apartments show what a great job you did in turning this into such a giant success. I would rent one of these in a heartbeat! By the way, I live in Lake Suzy as well so if you ever want to meet up for coffee or are looking to partner in the future, feel free to reach out. Again - congratulations on seeing this through. So happy for you and your wife!