Achieving a goal with a 19 unit value add

[John Warren]

Yesterday was an exciting day! I started a journey back in 2015 towards financial freedom with a goal of acquiring 50 units in 3 years time, and yesterday I was able to acquire a 19 unit value add apartment building in Berwyn with my partner @Scott Skinger With the 19 unit acquisition, I have gone from 0 to 52 units in just over 3 years time.

Not only have I reached my personal goal of topping 50 units, but I also get an opportunity to re position a desirable asset in a growing neighborhood. I hope this post encourages other people to work and in pursuing your goals. Even in a tough market, there are deals to be had if you are consistent, and work hard to uncover them!

[John Warren]

Update number one @Account Closed. One of our demolition guys was working in a unit and he mentions that he "doesn't know why we aren't converting this dining room into a bedroom. I look it over with the team, and now we are converting 3 of our 1 bed units into 2 bed units. Even with our conservative underwriting, a 2 bedroom unit will generate an additional $2400 per year in revenue. With this additional $86,400 of revenue, we will add around $1,080,000 in building value at an 8 cap (local market cap is closer to 7). 

We also were able to exceed our expectations for our garage, and just rented it out for $500 per month! That exceeded our underwriting by $200 per month, which allows us to add an additional $2400 of revenue per year. This is not a huge win, but every little bit helps!