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Case Studies

February 18, 2021

Video

Multifamily Case Study: 30 Units in Tampa, FL

This complex is in the Tampa Bay MSA in Pasco County, Florida. Located...

Highlights:  This complex is in the Tampa Bay MSA in Pasco County, Florida.  Located 20 minutes North of Tampa, Florida, Wesley Chapel is one of Florida's (and The United States') fastest-growing communities. The area is filled with various amenities for tourists and residents alike. There are multiple shopping malls, such as the Shops At Wiregrass and The Grove, as well as diverse dining options.

The complex consists of (3) buildings, each housing (10) residential units.  All unit feature (2) bedrooms and (2) full baths laid out in three different configurations from 850 – 985 SQFT.  The units have a mid-range finish which includes standard appliances, tile flooring and laminate counters. Built in 2016 the units and the grounds need general maintenance, but no major improvements are required.  The current owner self manages the property and is liquidating in preparation for retirement.

Repositioning:    The complex will be acquired for $ 4,660,000 and an additional $60,000 will be invested in converting the current office / owner’s suite back to (2) residential units as well as addressing the deferred maintenance issues and improving the signage and landscaping.   Converting the office back to residential space the monthly will translate into an annual increase of $40,200.00 in additional rental income.  Based on the current market CAP rate this change will not only improve cashflow but will yield an increase in property value in excess of $500,000.00.

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February 14, 2018

4 min read

Real Estate Valuation: Cap Rate and Return on Cost Decoded

While they both provide valuable insights, their application...

As we continue to explore the fascinating realm of real estate investing, we shift our focus today to two crucial metrics used in assessing the value and profitability of real estate investments - Cap Rate and Return on Cost. While they both provide valuable insights, their application and significance can be quite different. Let's untangle these terms and understand how to use them effectively.

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