15-unit NOI Enhancement

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