Case Study
Mayfield 16 Townhomes
Townhome repositioning with premium finishes and professional management.
Purchase Price
Renovation Budget
After Repair Value (ARV)
Equity Created
Debt Partner Profit ($200k loan)
- We purchased this 16 unit highly distressed asset off-market through a broker relationship in July 2023. Only 3 occupied units, monthly rent roll of $2600, and lots of deferred maintenance. However, we saw the potential - good bones, a desirable unit mix (2 and 3 bedroom townhomes), and a solid location.
- Scope creep set in as we got to work and discovered subpar prior renovation attempts, each unit required a customized plan due to variations in existing finishes, two contractors were not able to complete the work to our standards nor stay on schedule, and we had to comply with multiple city requirements.
- We had to pivot and switch contractors twice. Thank goodness we had established a strong partnership with our Columbus contractor - he agreed to step in and take over the project for us, and completed it on schedule and on budget.
- The following months, we make multiple trips to oversee the renovation process and ensure all is on track. We had countless contractor check-in calls, and frequent property management discussions to strategize and plan for efficient lease-up at maximum rents.
- 100% occupancy took 6 months as we have subsidy tenants, and the approval process is a practice in patience. We were successfully able to push rents to top of the market given our higher end renovations. We are proud to say we increased monthly rent roll to $24k (from $2,600 at purchase).
- Our strategic updates to the property and hands on asset management culminated in an appraised value of $2.4M on a $1.3M purchase price within 18 months of ownership ($800k in forced equity after $300k in Capital Expenses).
- We refinanced using agency debt, have taken every penny of our own capital back out of the deal, and now will continue to own the asset with infinite returns on our capital.
- The property will cash flow $6k a month (after we took all our capital back out). This is the power of real estate!
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