The Cambridge | Aberdeen, WA |
https://www.redfin.com/WA/Aberdeen/201-N-F-St-98520/home/14785920

We bought an 11-unit building in Aberdeen, WA, for $670,200 in May 2024. The listing was messy, the property needed some love, and the numbers suggested an opportunity. We figured a little elbow grease, thoughtful improvements, better tenant screening, and incremental rent increases could turn it into a solid income property.

We were right about the opportunity. The financing environment had other plans.

We financed the acquisition with a commercial credit union loan at 7.85% and privately financed the down payment at 8%, expecting to refinance when rates came down. They didn't. (If anyone knows where the rate-drop memo went, please forward it.)

So we kept working the plan. We're now about eight months behind my original timeline (so it goes), but after renovating and updating all 11 units, the building is fully repositioned and we're ready to pass it along to the next investor. I know it's right for someone out there. It's just done being right for us.

The Deal Points:

• Purchase price: $670,200 (May 2024)

• Current asking price: $949,900 (October 2026) - just reduced

• Cap rate: 9.09%

• Building: 11 units, 7,442 sq. ft., built in 1925

• Location: Downtown Aberdeen, Washington, on a .26-acre corner lot with off street, fenced parking lot.
  
  Commentary: Of course there's still upside here. The next owner has room to continue growing rents with an established tenant base, introduce paid parking for an additional revenue stream, and tackle the remaining roof project. We've done the heavy lifting on the reposition, but there's still value left to unlock.
  

3 Lessons Learned:

1. An eviction isn't over until it's OVER.

I refused to inherit a $10K eviction and negotiated hard to get the seller through the writ process. We closed with the eviction finished but the tenant refused to vacate. Working with the sheriff and her Section 8 team, we eventually got the unit back. What followed was a roughly $15K renovation, an undiscovered bedroom (!!) the loss of 2 cleaning vendors and contractor because the unit was so bad, and the cost of moving and storing the tenant's belongings in accordance with state law.

Brutal doesn't begin to cover it. In hindsight, we should have waited until the unit was fully vacant before closing.

2. Reserves. Always more reserves.

Unexpected leaks, water heaters, deferred maintenance, and pest remediation add up. And apparently, yes, Western Washington has roaches. I've lived here for 20 years and somehow missed that memo.

3. Small improvements compound.

We replaced flooring, painted units, upgraded appliances and toilets to low flow to decrease water bills. We repaired parking lot potholes, added exterior lighting and security cameras, installed a coded security gate, and established monthly cleaning for common areas. We screened tenants carefully, improved the tenant base, and raised rents incrementally while retaining good residents.

No single project transformed this building. All of them together did.

Current Evaluation And Thoughts:

The original plan was to refinance the privately financed down payment when rates dropped. That hasn't happened, and we're making a decision based on the market we're actually in, not the one we hoped we'd be in by now.

We bought a property with potential and put in the work to realize it. Our asking price is nearly $280K above our acquisition price. That's not net profit, of course, but it reflects a meaningful repositioning in a relatively short period.

The Cambridge is now a repositioned 11-unit property with a 9.09% cap rate, established tenants, improved units, and opportunities for additional revenue.

What I'm Proud Of:

This was a full reposition, not a passive appreciation play.

I had no money of my own in the deal and still own 50%.

I found and managed a great PM team
Most importantly, we improved the quality of the building, the block, and the living experience for our tenants. Our mission is to provide quality, market-rate housing while maintaining and compounding positive cash flow to fund future investments. We accomplished that here.

I'm proud we took a building that needed attention and made it a better place to live. That's the part that doesn't always show up on a spreadsheet.

What's Next?

I'm not finished with multifamily, in fact I love it! I love the economy of scale, the problem-solving, and finding something with potential and making it better. I'd happily take on another deal this size, and I'd also consider a minority position in a syndication where I could contribute and learn from the sidelines. I'm especially interested in the South Sound: Olympia, Tacoma, Federal Way, Shelton, and surrounding markets.

And for the BiggerPockets crowd, I'd genuinely love your take:

• Would you sell a repositioned property in this rate environment, or hold and wait for better financing?

• Would you have closed with an eviction still in process, or made vacant possession a hard condition of closing?

• For those investing in the South Sound, where are you finding opportunities right now?

We've all got a deal that taught us something the hard way. This one definitely delivered.