12 unit Apartment complex in Columbia South Carolina. This particular project was considered a full gut rehab of each individual unit. Major improvements included new electrical, HVAC systems, new Re-pipe service water lines, new kitchens and bathrooms through out, new roofing.
|City, State||Columbia, SC|
|Cash to close||$93,000|
|Mortgage at signing||$267,000|
|Note Terms||4.25%, commercial 5 year ARM, @20yr/am institutional debt|
|Total Heated (sqft)||10,590|
|Avg Unit Size (sqft)||882|
|Average Rent, rehabbed unit||$740|
|Total rent once fully rehabed/rented||$8,880/m|
|Current monthly debt service||$1600/m|
|Water, Trash||$600/m, $7,200/yr|
|Total operating costs, everything||$4,000/m|
|Monthly cash flow||$4,800/m|
|Net operating income after repairs||$64,000|
|After repair value||$900,000|
|Target refinance cap rate||7.5%|
|Acquisition, Debt and Repairs, All in||$650,000|
|Total Project life cycle||20 months, 70% complete|
Extensive market research is conducted in the preliminary stages of evaluating a property. One of our criteria is that the macro level economics in the area and the city is rising and improving. Columbia SC the capital of South Carolina is an incredibly beautiful city, with rich architecture and history. The capital has had year over year population increases and is one of the top 5 growing counties in all of SC. The city boasts many colleges including the renowned University of South Carolina. Increasing stats in job growth, decreased crime, new construction, and many other factors all point in a strong direction to invest in this area. Still very affordable compared to the national average the room for equity gain in this emerging market is on our side.
It is possible to have an equity ownership in our next project. We will bring a new property already under contract to the table in which you can view our analysis of the project and decide to join or not. The partnership is completely open ended and can be tailored to the individual. For example someone may want a preferred return in which they simply contribute capital as a loan and receive a moderately high set interest payments. Others may prefer an equity position to capitalize on the cash flows, and equity gain once the project is completed. Others may choose a hybrid option with a blend of both.