Number of Units: 192 units

Purchase Price: $8,700,000

Purchase Date: Nov. 19, 2014

City: Angleton, TX.

Price Per Unit: $45,313

Cap Rate: 7.91%

Cash On Cash: 12.3%

Rentable Sq. ft: 137,088

Price Per Sq. ft: $63.46

Estimated Current Value:

Value Add

This asset looked great from the beginning. When we purchased the asset it had complete renovations already done that were estimated by us worth $2,000,000. Upon inspection we learned that the renovations were valued to be at more than $2,600,000.

Story about Acquisition

Vinod Chopra had been researching this segment of the market, and after eading numerous reports decided that it was smart to invest in more of this market. Albion Apartment Homes was an off market deal; the broker had just met the sellers at dinner and he informed Vinney of the possibility of purchasing it. Vinney acted fast and sent an LOI through the Broker. The offer he made was low and conservative,similar to other offers he makes.

Actual Performance

We are very pleased with the performance of this property which is producing approximately $35,000 or more net cash flow each month. The deferred maintenance is practically zero. The parking lot has just been repaired and our residents are enjoying living there. The Facebook page also has very compelling remarks by 275 happy residents. We are told that it’s Value has increased to $10,500,000 as of July 30, 2016. That’s an increase of $1,800,000 gain in equity in 18 months, an extragavant 20.69% increase in value of the asset. Vinney is pleased and feels he made a homerun investment.

Cash Flow Distributions

We are very excited that the asset is managed by our top Community Manger with a strong staff under our supervision. The investors have been getting regular quarterly Cash Flow checks since the purchase. The most exciting news is that it seems like that we will see 1st year Net Income of $482,000 vs our conservative projection of $356,563.

Renovations

We did not need to do any major renovations since the purchase. The Fannie Mae Lender did ask us to repair the Parking lot, which has been accomplished. We also freshly plastered the swimming pool to make the experience better for our valued tenants. Eva, our Community Manger is very particular to keep the landscaping looking immaculate.

BEFORE
AFTER