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Investing Strategies

Apartment Investing: Why This 140-Unit Prop Is a Sweet Deal

I’m really excited to share with you an amazing remote deal my company is doing in Atlanta. It’s actually one of our biggest rehab projects to date!

Hey Moguls, Chris Urso here with the details of this sweet multifamily deal. By sharing all the work we’re doing and why we chose to invest in it, I think you’ll have a better understanding of just how much goes into a big project like this.

So, it’s a 140-unit property and it’s all vacant. Which is good—it gave us the opportunity to fix it up without displacing tenants or disrupting their lives.

Demo and Rehab

Okay, the complex has several large buildings… and needed LOTS of work.

We came in and immediately demoed and gutted most of the buildings. Then we got to work:

  • painting all the buildings a nice neutral gray
  • putting new roofs on all the buildings
  • installing new sliding glass and entry doors  
  • installing new windows
  • repairing columns
  • placing new gutters and downspouts
  • updating the pool

So, yeah, lots and lots of work…

We also started to clean up the outside with fresh landscaping, and eventually a fence will go around the entire perimeter of the complex, with a gated entry.

As of now, the parking lot is like a war zone as we do all this work—we’ve got big trucks out here, people traipsing through the grounds—it’s a mess. But slowly, we’re finishing parts of the rehab and it’s all going to come together.

A super-fun feature that we’re adding is a dog park. It’ll be fenced in, but we’ll also provide open-air seating. It’ll be a nice outdoor space for pups and people. While tenants don’t demand those value-add things, we know they want it and it’s those additions that’ll entice quality tenants.

Why I Like this Opportunity

So, one of the biggest reasons why I like this deal is because of the location—it's in an up-and-coming area of Atlanta. And even better, there are no super-close neighbors… it’s quiet and sort of secluded.

But, a little ways away there are new houses going up—but that’s actually a good thing. There are about 20 homes being built and they’ve all been sold already for $250,000-$300,000. Here’s why that’s a good thing…

That proves that this is a good investment area and that it’s transitioning. People do want to be here... it’s about 10 minutes from Downtown Atlanta, about 5 minutes from the cool, hipster area of East Atlanta.

See, we make sure to find the right opportunities for our investor partners. My company only does 3-5 deals in a year, but we underwrite hundreds to get there…

And this deal was an opportunity that was brought to us off market by one of our brokers.

And when we get opportunities like this, we do a tremendous amount of due diligence upfront on the deal—the location, the macro market, the submarket—and then we present a comprehensive business plan to our accredited investor network.

We put it out to individual, private investors to give them the opportunity to participate in the project alongside our company. We basically do all the heavy lifting for them—run all the due diligence, the construction management, the operational oversight and the asset management.

More Details and Next Steps

So, back to the units themselves… another reason we were drawn to this complex is because of the floor plans—we love them. So when all 140 units are fully renovated from top to bottom, inside and out… this place will rent itself.

It’s going to offer very large floor plans of 1-, 2-, and 3-bedrooms units with 2 baths in 900-1,100 square feet.

We expect the average rent to be about $1,050/month. We’ve already met with our property management team to go through our marketing materials, logo and branding for all our collateral.

This is simply a really great project, and I’m excited to be part of it.

Stay tuned… I plan on updating you on the progress as the project moves forward. I’m sure there will be more valuable lessons to share with you along the way.

Comments, Questions, Tips?

Do you have any info for investing in multifamily properties? Share below.

 

Do It To It! Immediate Action Steps

Always do your due diligence before investing in any property, especially a giant multifamily complex.

Remember that location is a huge factor in every type of deal.

Know what tenants like and expect—and provide that for them so you get quality tenants and fewer vacancies.

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