Pasco 9 Unit
Jan 2020 – Oct 2022
Past results do not predict future performance.
At Acquisition · 2020
Initial Condition
- 4 – 2bed/1bath, 4 – 1bed/1bath, 1 – 3bed/1bath
- 1950s vintage construction
- Rents were approximately $400 below market rents
- Very significant deferred maintenance throughout
Units needed all new water supply lines and some drainpipes, interior and exterior paint, water heaters, mold remediation, toilets, new flooring, baseboard, trim, doors, heating & cooling. Full remodel required.
Lots of mold in the bathrooms and bedrooms at time of acquisition.
Renovations Complete · 18 Months
Full Rehab in Under Two Years
Converted the old boiler room into four new bedrooms, increasing rental income by $600/month immediately upon conversion.
New water heaters, toilets, paint, bath fans, and bathroom vanities throughout. Each unit received a dedicated laundry room, a major rent premium driver.
High-efficiency mini-split heating/cooling units in every unit. Full mold remediation with humidity-sensing fans. Smart water meters installed to track usage and enable utility billing.
Rehabilitation
Before & After Rehab
Click any photo to view full size
Before
After
End of Year Three
Investment Results
*Average cash on cash return is low due to high vacancy in year 1 during COVID. Stabilized year 3 cash on cash was 7% and climbing.
Past results do not predict future performance.
| Date | Valuation | Price/Unit | NOI | Avg Gross Rents/Mo |
|---|---|---|---|---|
| Jan-21** (Purchase) | $132,834 | $14,759 | $7,359* | $575 |
| Jan-22 | $875,993 | $97,333 | $48,530 | $922 |
| Oct-22** (Sale) | $1,115,000 | $123,889 | $61,803 | $945 |
*Low NOI due to very high vacancy at purchase and through the initial year of renovations during COVID | **Annualized
2022 · Disposition
Sold for $1,115,000
The Pasco 9 unit was acquired during a challenging COVID environment, fully renovated in under 18 months, stabilized to market rents, and sold at a significant premium, delivering a 25.6% average annual return. Past results do not predict future performance.
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