PURCHASE PRICE: $14K/unit
INVESTMENT TIME: 1 year
SOLD PRICE: over $25K/unit
Rolling Wood Apartments in Houston, Texas, consists of 211 units built in 1979 with one, two and three bedroom floor plans. The property was at 90% occupancy at the time of purchase. There were exceptionally high electric and water utility bills. Management was disorganized and unable to collect late fees and electric bills. Additionally, management was unable to implement a preventative management plan leading to over $100K in deferred maintenance.
Installed sub-meters for each unit, fired existing 3rd party electric meter reading company, and implemented RUBS in-house; conducted “water-walks” to identify water leaks on property; fired existing property manager and promoted existing assistant manager; addressed all deferred maintenance; implemented “Standard Operating Procedures” and preventative maintenance plan.
PURCHASE PRICE: $8K/unit
TOTAL INVESTMENT $10.7M
INVESTMENT TIME: 2.6 years
SOLD PRICE: over $35K/unit
EQUITY IRR: 43%
Park Texas is a rental community in the Houston area built in 1972 with 587 units comprised of one, two and three bedroom floor plans. The property was 15% occupied at purchase and had high utility expenses due to HVAC impairments and underground water leaks. It also had a history of mismanagement and neglect and several residents were involved with criminal activity.
Installed SWA Property Management and maintenance staff; changed tenant profile; evicted suspected criminals; rebuilt guard shack and entrance; security added 24/7; replaced HVAC system and repaired broken pipes; instituted preventative maintenance plan; corrected deferred maintenance issues; rehabbed 300 of the 587 unit interiors.
PURCHASE PRICE: $11.8K/unit
INVESTMENT TIME: 6.5 year
SOLD PRICE: over $20K/unit
Mesa Ridge Apartments in Dallas, Texas, consists of 92 units built in 1970 with one, two and three bedroom floor plans. The property was at 50% occupancy at the time of purchase.There were high water utility expenses due to underground water leaks from the 2-pipe chiller system. The City of Dallas had pending lawsuits against the property for electrical code violations and criminal activity. The property had an out-of-town owner and was managed by a third party company. Due to poor management, ideal tenants left the property and only undesirable tenants remained.
Fired third party manager and installed in-house professional management; identified tenants involved in criminal activity and evicted them from the property; repaired all electrical code violations and other deferred maintenance items; fixed underground 2-pipe chiller pipe leaks; deployed construction team to repair all leaks to get units “back online” for lease.
PURCHASE PRICE: $7K/unit
TOTAL INVESTMENT $1.1
INVESTMENT TIME: 3.8 years
SOLD PRICE: Over $26K/unit
EQUITY IRR: 20%
LaVillita apartments in Pasadena, Texas, consists of 92 units built in 1964 with one, two and three bedroom floor plans. Only 5 units were occupied upon purchase as the property was in major disrepair including significant structural issues. Additionally, utility expenses were high since there were so few residents. The previous owner lived out-of-state and managed the property with an “in-house” team.
Installed SWA Property Management and maintenance staff; increased occupancy to 90% at market rate; instituted preventative maintenance plan; made extensive repairs to structures, roofing, plumbing and electrical.