Thread by @ryansweb

Very quick #retwit thread on an 8-unit project that I was a part of:

2022 was quite a crazy year for us. We closed on the property late 2021 and had most of our renovations done by Feb 22'. Per our bridge loan, we couldn't roll into permanent until ~April. Time was ticking.

We, fortunately, had a great capital partner in hand and rolled our bridge into a permanent 30-year at blended 5.5% interest. We did our underwriting for 4.75% - so not terrible but we missed our target.

However, our initial investment into family-friendly amenities worked.

Thanks to some inspiration from @bobbyfijan, we opted to spend $ on adding yards and a common space. We serve Class-C tenants in an area still turning around. We added security cameras and a safe place for single moms & small families to have a protected play area.

We were projecting $1,250/unit but ended up getting $1,425 blended due to these amenities. We could get ~$1,550 with current market rents but there's more to #RealEstate than seeking every penny. Our tenants love the property and even created a small FB community!

So the higher rents offset the higher interest rate. We're now entering a fully stabilized period. Here are our basic stats:
CoC: 4.53%
CRR: 11.08%
Cap Rate: 7.87%

We're positioned really well to refinance at a lower rate in the future to make the property sing even more.

Overall, it has been a great experience, and learned loads. From capital raising to partners to renovation challenges to capital markets. The next deal we do will definitely be done differently.

Excited to keep marching forward. Shoutout to @JumpInRE for inspiring us to jump in!