[Check out my original article to see the beginning stages on this project.]
First Apartment Acquisition Update: Increased Rent & Occupancy
Through interior and exterior improvements, we were able to increase the rent by $80. The occupancy is now 75%, up from the original 50%. Unfortunately, the number of tenants who either skipped out or could not maintain paying rent after possession was higher than anticipated. This was a good indicator that the seller potentially loaded the property with unqualified tenants, but luckily, those units were quickly renovated. Marketing efforts include a dedicated website, as well as leveraging social media. Building an online presence helped to bring exposure to the property.
Overall, it always helps to purchase cheap and underwrite conservatively to ensure you do not get yourself in a bind on these deals.
Any questions about this deal? Have you made your first apartment purchase yet?
Let’s chat below!