An update on Silver Tree, which is now Canyon 35.
We closed on this community on August 17th. The purchase price was $8.15M; Reno Budget of $1.4M.
Exterior Reno
The painting has been completed aside for the doors. We are waiting on the signage package which includes numbering for the unit doors. This has to be installed before the doors can be painted. The landscaping has been completed. The laundry room/gym reno is about to begin.
All exterior projects are coming in under budget.
Interior Reno
If you haven't seen the pictures yet, please click here. The rehab on the 1x1 unit that you see in the picture came in right on target at $7,350, or so. Unfortunately, some of the bathtubs need to be resurfaced, and this was one of them. Cost is about $180. Thus, we were a little over all-in.
going forward everything depends on how many tubs end up needing to be re-surfaced. At the end of the day, the overage is minimal considering the level and quality of the product we are getting.
Pricing on As-Is Units
The units that are being renewed are getting $90 - $190 premium to in-place.
Pricing on Renovated Units
Two 1x1 units have been leased at $825, which is our ask. Two 2x2 units have been pre-leased (not completed yet) at $1,125, which is our ask. All are transfers of existing tenants who are more than willing to pay for quality.
The 1x1 people are going from around $550 to $825. And the 2x2 people are coming from around $650 to $1,125. These are very significant bumps and very good news for our underwriting assumptions.
Bad Debt
We are writing down about $2,500 of bad debt. This is comprised of 7 defaults, 6 of which were skips and one eviction. All are now gone.
All occurred in September, immediately upon us taking over. The eviction is now out, but lingered, because those take time. But, the velocity of bad debt totally died down in October, which is a very good sign. If this trend holds, we should see a bump to the CF going forward.
Vacancy
We have yet to see any more than 4 vacant units, and that's rare. This is 4% physical vacancy. Our projections for the stabilized vacancy for this property are 6%. Looks like there is room to do better.
Feel free to reach out with questions,
We closed on this community on August 17th. The purchase price was $8.15M; Reno Budget of $1.4M.
Exterior Reno
The painting has been completed aside for the doors. We are waiting on the signage package which includes numbering for the unit doors. This has to be installed before the doors can be painted. The landscaping has been completed. The laundry room/gym reno is about to begin.
All exterior projects are coming in under budget.
Interior Reno
If you haven't seen the pictures yet, please click here. The rehab on the 1x1 unit that you see in the picture came in right on target at $7,350, or so. Unfortunately, some of the bathtubs need to be resurfaced, and this was one of them. Cost is about $180. Thus, we were a little over all-in.
going forward everything depends on how many tubs end up needing to be re-surfaced. At the end of the day, the overage is minimal considering the level and quality of the product we are getting.
Pricing on As-Is Units
The units that are being renewed are getting $90 - $190 premium to in-place.
Pricing on Renovated Units
Two 1x1 units have been leased at $825, which is our ask. Two 2x2 units have been pre-leased (not completed yet) at $1,125, which is our ask. All are transfers of existing tenants who are more than willing to pay for quality.
The 1x1 people are going from around $550 to $825. And the 2x2 people are coming from around $650 to $1,125. These are very significant bumps and very good news for our underwriting assumptions.
Bad Debt
We are writing down about $2,500 of bad debt. This is comprised of 7 defaults, 6 of which were skips and one eviction. All are now gone.
All occurred in September, immediately upon us taking over. The eviction is now out, but lingered, because those take time. But, the velocity of bad debt totally died down in October, which is a very good sign. If this trend holds, we should see a bump to the CF going forward.
Vacancy
We have yet to see any more than 4 vacant units, and that's rare. This is 4% physical vacancy. Our projections for the stabilized vacancy for this property are 6%. Looks like there is room to do better.
Feel free to reach out with questions,
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
