Very excited to announce that today we closed on Hillcrest & Hillview, a 95-unit apartment community in Cincinnati, Ohio. Not only that, but it just so happens we knocked it out the same day we sold Four Lanterns, our 34-unit community. Sell one community in the morning, buy another in the afternoon – it was a crazy day.
We were able to pick up Hillcrest & Hillview, a 95-unit project in total, for about $2.3 million. We conservatively estimate we’ll be able to get these properties beautified and improved enough to command a $3.2 million price tag in 2-3 years, though we are pushing for $4MM+.
I’ve had a few people ask me how it is so easy to do multiunit, value-add deals like these. Easy answer: it’s not. It has taken my partners years to develop the relationships in the local market to get access to properties like this. It has taken me years to build the foundation I needed to be able to invest into projects like this. ll good things take time, people.
This also ignores the fact that these properties require a ton of work. We are buying distressed properties. These communities have often been abused – or at the very least, neglected – by their owners. Deferred maintenance, trouble tenants, and way-below-market rents are very common in these deals. It takes a team that is willing to get their hands dirty to turn these types of properties around. Fortunately, I’ve been blessed to be partners with great people. People who get just as much value from improving our city (Cincinnati) as they do earning spectacular profits.
One of the great lessons I’ve learned in business the past 15 years is the power of your partners. Choose wisely. I’ve had a lot of bad business partners – dishonest, selfish, and lazy people. I’m glad to have finally found the right ones. Don’t worry, you will, too.