212: 360 Unit Case Study - Increasing Property Value from $18M to $27M!


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By Accelerated Real Estate Investor Podcast and Josh Cantwell. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

I’m about to make an offer on an $18M property, and today, I want to walk you through my step-by-step process for evaluating the deal — and how I plan to increase the property value to a whopping $27M!

This 360-unit building was built in the 1960’s and has been owned by the same person for the past 10 years. The blended rents are on average $640/month and it’s driving $2.6M per year in gross income, with a net operating income of $1.1M.

After taking a peek under the hood and running through my 5-step process for underwriting a deal, I found a few opportunities to bring the expenses down.

This alone will save between $150k-$175k per year. But, is that enough to make this deal worth it? Not quite!

While I was able to cut at least 10% worth of expenses, I knew we’d have to figure something else out with this property if we really wanted to win!

So, I reviewed the comps across 12 different buildings, and realized there was a much bigger opportunity that no other building in the area was considering.

To find out how our team plans to reduce expenses, bump up rents, and increase the property value from $18M to $27M, check out today’s episode.

Interested in investing in deals just like this one? Sign up to our investor portal for FREE at FreelandVentures.com/passive and we’ll send new opportunities directly to your inbox!

Key Takeaways - 360 Unit Case Study

  • My 5-step system for underwriting a deal.
  • How we plan to cut $175K in expenses.
  • My system for cutting 25%-40% of a property’s water bill.
  • Why you have to pay attention to what I call “the muck” of underwriting.
  • The BIG opportunity we found after reviewing 12 different comps!
  • Our business plan for increasing the property value from $18M to $27M

Want the Full Show Notes?

To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/212

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Connect with Josh Cantwell

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352 episodes