CASE STUDY: New Purchase - 144 units

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We’re proud to announce our latest acquisition in a great market. On August 17th, 2021, we closed on a 144 unit apartment complex in Evansville, Indiana.

The property is in an excellent location with an immediate opportunity to increase value both with rents, additional income, and increased management efficiencies.

WHY INVESTORS LOVE THIS DEAL:

  • Strong value add opportunity as we increase rents by $125+ per unit

  • Built in 1988, the property is located in a well established and desirable area

  • Projected Internal Rate of Return: 14.5%

  • Projected Average Annual Return: 18.12%

  • Projected Average Cash-on-cash return: 7%

  • Projected Equity Multiple: 2.09X

Our purchase price for this property was $8.28M and our as completed appraisal came back at $9.5M. That is substantial additional equity for investors at the closing table.

In addition to this equity, our lender also allowed us to borrow 80% of our Capex budget which will further push investor returns past our original projections.

FIRST 21-DAYS

As most investors know, the first 21 days of a new acquisition are critical to setting up the success of the project. In the last 21 days, together with our management company, we've accomplished the following:

  • Staffed the leasing office with an A+ team of experts in the Evansville market

  • Notified all tenants of policy changes, new management, and some rent increases

  • Rebranded the property to "Spring Valley Flats"

  • Launched new website with floor plans, marketing info, and resident portal

  • Accomplished year 1 projected rents BEFORE we started our capex improvements

We're very pleased with our first 3 weeks of operating the property. And we're looking forward to accomplishing much more at Spring Valley Flats.

INVESTORS: Our cash flow is on track your first distribution will be sent on October 15th.

If you have any questions or would like to reserve your spot in our next acquisition please log into your investor portal or schedule a call with me here: https://calendly.com/markallenkenny/25min

Best Regards,
Mark