Woodson Apartments

Goal

Rehab and Raise Rents $200/unit up from the existing $550/month. Refinance all our on costs back out within three months of purchase.

Budget

$100,000

City

Raytown

What we learned

Day one of ownership both fourplexes, we replaced the roofs, soffits, gutters, windows, all decking on the front and backside, as well as replaced doors and repainted the buildings .

We proved after renovating the first unit, we could get the $750/unit as projected.

Takeaways:

  1. When making your lease schedule and projections around Thanksgiving, account for the holidays starting four weeks prior and lasting four weeks after Christmas before tenants resume looking for their next home. Purchasing at this time made it challenging to find people looking for rentals .
  2. Ensure that you are in alignment on the "After Repair Rent" with the property management company before you hire them or purchase the property. Although we are achieved the rent desired, we had to request that they continue trying longer at the desired price, than they felt comfortable.
  3. Your team can make or break the deal so make sure you have all your necessary LLC docs in order, as well as, any private lender promissory notes ready for the refinancing portion.  Both the operating agreements and payoff letters held up the refinancing of this property by 45 days which costs us greatly in hard money and lawyer fees.
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