If you followed our first report from August 27, you will recall that we dove into this acquisition with some risks. Today, just over a month later, we are pleased to show how our team’s efforts are already paying off.
Firstly, here is the post from that day.
Multifamily Acquisition #1 – 2000 and 3000 Block E.C. Street, Time to Show Some Real Muscle
Updated Property Status
2000 Block E.C. Street – Unit Status (as of October 4, 2024)
| 1 | 26 | Major Repairs | $30,000 |
| 2 | 30 | Eviction Notice 9/30 | eviction |
| 3 | 34 | Lease Renewed | 950 |
| 4 | 38 | Lease Renewed | 800 |
| 5 | 42 | Lease Renewed | 740 |
| 6 | 46 | Eviction Notice 9/30 | eviction |
3000 Block E.C. Street – Unit Status (as of October 4, 2024)
| 1 | 75 | Lease Renewed | 900 |
| 2 | 81 | Lease Renewed | 850 |
| 3 | 85 | Eviction Notice 9/30 | evicting |
| 4 | 89 | Repairs | $30,000 |
| 5 | 91 | Lease Renewed | 950 |
| 6 | 95 | Lease Renewed | 735 |
| 7 | 97 | Lease Renewed | 880 |
| 8 | 01 | Lease Renewed but Eviction on a Bad Check | 900 |
Interim Assessment
As we predicted, there are quite a few evictions. Four, to be exact. However, we were more than pleased to find that most of the occupants, when visited personally by our property managers, were happy to re-execute the lease.
The occupants’ confidence in the new property management was high once they saw the common areas being fixed up right away. They had not been taken care of nor heard by prior management, and were excited to work with a responsible team.
While we budgeted $30,000 per door for repairs, the seamless lease renewals in 8 units indicate that some of this $420,000 repair budget may not need to be spent right away. This is not to say at some point each unit may need turnaround renovations, but the fact that we have a gross cash flow of $6,805 a month within one month of going in “blind” is extremely favorable!
Many residents in underserviced areas have problems with their landlords. National news outlets have reported incidents of irresponsible and unresponsive corporate landlords, sometimes calling out for the banning of such ownership.
Incidentally, the seller of these properties was a foreign investor lured by the supposed high cash flowing numbers on paper, who found out too late that the actual following through is the real challenge.
Whether corporate, fund, foreign or mom-and pop ownership, there is no doubt in our minds that many residents in our area need better stock and better tenant support that the MTMA Difference is able to offer.