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Hadn’t had a chance to update on this most recent acquisition, but our team just closed on this 33-unit apartment community in Cincinnati. We’ve decided to name it Briarwood Apartment Homes, and we’re already in the process of meeting the residents, replacing the roof, and windows. Already got the new sign up to welcome the residents home!
We picked up this property for $690,000 (~ $21,000/unit), and expect it to be worth at least $1.1 million ($33,000+/unit) by the time we’ve got it completed updated and streamlined (should take about 12 months). There is a ton of upside in this property, mostly due to deferred maintenance and – frankly – poor management. The residents haven’t been particularly thrilled with how their community has been running, and we can’t wait to get in there and really shine it up.
Besides the exterior landscaping, power washing, etc., we’ll also start updating the units that are vacant. There is good and bad news here – this property is mostly occupied. So we’ll do what we can to the exterior and rehab the few vacant units, and then update the other units as there is resident turnover (or, more frequently, the existing residents move into the newer, updated units that we’re taking care of now). We’ll obviously do a rent raise on the newer, updated units, but it won’t be anything that will typically break the bank of our existing residents. More often than not, the residents are happy to pay an extra $50-100/month to move into a freshly rehabbed, updated apartment.
Briarwood is going to be a shining beacon of real estate glory in this community, and I can’t wait to show you guys some update pictures as we build it out.