Multi-Family Projects

15-unit NOI Enhancement

This 15-unit building near NDSU in Fargo presented an interesting challenge and opportunity as the primary issue was related to releasing the property. When I placed it under contract, only 5 of the 15 units were occupies. By the time we closed, 9 were leased and thanks to the pros at Personal Touch Management, a few weeks later we were full of great residents.

The other opportunities to increase the NOI (Net Operating Income) for this space includes repurposing a previous boiler room space into a usable unit (which I am currently planning a short-term rental strategy for) and an attic space that will be repurposed into a 3 bed, 2 bath showpiece. This should allow us to increase from a proforma gross income of $6700/month (actuals about $2000/month at closing) to a gross income of $9000/month. We have also improved expenses and have a plan to continue to do so.

Based on Net Operating Income X Cap Rate = Value, this will end up being my most profitable project to date, even at consistent cap rates. See the attached pictures of the before and after of the massive boiler removal. I’ll include updates soon of the finished boiler room and loft space. To learn more about this project and others like it, please reach out to me at steve@fourwallsrei.com

18-unit reposition

The 18-unit reposition was an ambitious project composed of extensively renovating three 6-unit buildings in North Fargo. These buildings had fairly decent physical occupancy with less than stellar economic occupancy and were in pretty rough shape when I took possession. The buildings are composed of two 2BR units and four studios per building. The studios had never had a cooking surface and so the team had some significant electrical work to add ranges and above-the-range microwaves to the new kitchen configurations.

I kept only three residents from the previous ownership and all the units needed significant renovation representing my biggest project to date. The ladies at Personal Touch Management were able to lease the units quickly upon completion and after surviving my first encounter with commercial appraisal, (which will definitely be a blog post) I were able to pull about 85% of initial capital out of the project including down payments and renovation on refinance. This was a great proof of concept about multifamily reposition of C-class assets in the North Fargo Market. If you’d like to hear more about this project or others like it, please reach out to me at steve@fourwallsrei.com.​

North Fargo 4-Plex

This four-unit building in north Fargo is our first multifamily property. The two upper units have two bedrooms, while the garden-level units have one bedroom each. These units required some cosmetic updates upon acquisition and now are utilized as fully furnished rentals.

The Dusty Duplex

The Dusty Duplex presented an interesting opportunity in North Fargo. I was able to purchase this property from a tired landlord and part of taking possession prior to starting renovation included finding new homes for the current residents.

Shortly after aquisition, the opportunity of splitting the parcels on this property presented itself. The property is composed of a three bedroom, two bathroom unit on each side as well as an attached garage and in the unit laundry. All located on one level with no basement make this a unique property in Fargo and when it was noticed that there was a water meter on both sides I was able to inquire with the city about splitting this duplex into two seperate homes. This provides us a significant financial upside, but also will allow for home ownership in an area primarily composed of rental properties.
 
Check out the before pictures! This project should be completed in the next few weeks and I’ll probably pursue a short-term rental strategy prior to selling in the first part of 2020. If you’d like to learn more about this project or others like it, please reach out to me at steve@fourwallsrei.com