Building has a good layout and is nicely positioned for people looking for small individual office spaces or smaller multi-office spaces. It was very dated and needed some significant work such as a new roof
Building was only about 50% occupied
Plan was to invest about $150,000 in improvements to make the property more desirable to small businesses
Initial estimates were very high and we worked hard to manage the remodel ourselves and were able to do it for the $150,000
The building was fully leased within about a year.
The building value increased to $625,000 and so we then refinanced the property and took out over $200,000 in cash and used it toward the purchase of another property (Chateau Village)
The return on our original $75,000 investment has been off the charts.
Asset Class: multifamily property
Location: Austin, TX
Purchased property in 2020 for $1.7 million
18-unit apartment building
Building was fully occupied but was dated and the tenant population was somewhat rough
Plan was to spend $10,000 to $15,000 per unit to upgrade the units to attract better quality tenants paying approximately an additional $200 per unit per month in rent
After purchase we began renovating units and followed the business plan
Over a two-year period, we have renovated almost all units and increased rent by approximately $400 per month per unit
We spent approximately $200,000 in renovations and the property is worth about $3.0 million
We will likely refinance the property early next year and take cash out to return the $700,000 to investors so they can invest in another property with us while still having the same ownership percentage in Chateau Village
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