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Case Studies

November 15, 2019

Video

Multifamily Case Study: 24 Units in Tampa, FL

This week we are featuring a “bread and butter” deal. This 24 Unit complex...

24 Unit Complex

Highlights: This week we are featuring a “bread and butter” deal.  This 24 Unit complex is in a northern suburb of the Tampa Bay MSA.  The location is within five minutes of a major open-air shopping center providing access to shops, entertainment, and a variety of dining options.  The property is also a quick 25-minute drive to downtown Tampa.

The property itself consists of two 12-unit buildings with a resort style pool and cabana area located between them on a lushly landscaped 8-acre site.  The property is gated providing security and privacy for the residents. The units all feature a 980 square foot townhouse layout featuring 2 bedrooms and two and a half baths with a modern upgraded finish level.  Built in 2017 the units and grounds are in excellent condition.

Repositioning: Acquisition price will be $2,640,000.  This property is a textbook case of an investor biting off more than they can chew.  The current owner acquired the project from a development company that builds and then markets turn-key investment opportunities to out of state investors.  Although the project is well constructed and fully tenanted the current contract management company is not performing up to the expectations of the owner creating a strong desire to sell. The rent collections indicate that the current rental rate is substantially below market.  Units of this size and quality are in very high demand so an adjustment to market rent will yield an increase in annual rental income $43,200.00 with no negative impact to the occupancy rate.  My team has also identified several other line item expenses that are well above the market rate.  By bringing in our professional management team we will be able to slash annual expenses by $13,000.00 or more year one.  This savings combined with the increase in rental income will boost the Net Operating Income by $56,400.00 which at a 6% market cap rate will boost the value $846,000 in year one while also providing great cashflow.

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December 6, 2022

3 min video

How To Structure A Real Estate Syndication

In the complex world of real estate syndication, understanding the intricate...

In the complex world of real estate syndication, understanding the intricate structures of Limited Liability Companies (LLCs) is key to maximizing your investment's potential. As a real estate syndicator or investor, grasping the nuances of these LLCs can provide significant advantages, from tax benefits to streamlined management. Let's break down the four critical LLCs commonly used in real estate syndication and their roles in the investment process.

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