Appelman Capital

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HOW $675,000 EQUITY CREATED IN JUST 4 MONTHS:
MULTIFAMILY RENOVATION SUCCESS STORY

This Erica Court Apartments located in Dayton, Oh transformative project, occurring in just over 4 months of ownership, exemplifies the strategic execution of value-add strategies in multifamily real estate. With a focus on renovation and asset enhancement, Appelman Capital achieved remarkable results, including increased rental rates, revenue, and equity. Let’s explore the details of this endeavor.

Property Overview:

– 40-unit multifamily property

– 21 units renovated within 4 months

– Average Rental Rate Increase: $207

– Annual Revenue Increase: $47,000

– Equity Created: $675,000

Renovation Scope:

Exterior Renovations:

  1. Replace Concrete Sidewalk
  2. Implement New Landscaping
  3. Install a Fresh Entrance Sign
  4. Replace Shutters, Paint, and Pressure Wash

Interior Renovations:

  1. Install New Modern Plank Flooring
  2. Paint and Replace Cabinetry
  3. Incorporate a Black Designer Lighting Package
  4. Include a Black Designer Plumbing Fixture Package
  5. Implement a Black Hardware Package
  6. Upgrade to Granite Countertops
  7. Paint Walls and Trim

Key Achievements:

  1. Strategic Renovations:

– Appelman Capital strategically focused on both exterior and interior renovations, enhancing the overall appeal and value of the property. These improvements attracted higher-paying tenants.

  1. Increased Rental Rates:

– The average rental rate increase of $207 per unit demonstrates the successful execution of the value-add strategy, resulting in higher monthly rental income.

  1. Revenue Growth:

– The annual revenue increase of $47,000 showcases the financial benefits of the renovation project, contributing significantly to the property’s cash flow.

  1. Equity Creation:

– Appelman Capital successfully created $675,000 in equity in just over four months, reflecting the property’s enhanced value and improved financial performance.

  1. Targeted Returns:

– The project is on track to meet and exceed Appelman Capital’s return goals, with a projected 22% IRR (Internal Rate of Return) and a 2x Multiple, emphasizing the financial success of the investment.

Conclusion:

This case study illuminates the effectiveness of Appelman Capital’s value-add strategy in the multifamily real estate sector. With focused renovations, meticulous execution, and a commitment to creating value, Appelman Capital achieved impressive results in a short time frame. The increased rental rates, revenue growth, and substantial equity creation are a testament to the firm’s expertise in unlocking the full potential of multifamily properties. This case study serves as a valuable reference for investors seeking to maximize returns through strategic property enhancements.

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