Flip and Danny bought a 15-pack of single-family rentals and duplexes after their buyer delayed on a separate 56-unit apartment deal. They're rehabbing roofs, water heaters, and HVAC systems across the properties, with 6 units already finished and 9 more in progress.
Questions this video answers
56 units
One tan building with 12 units; two brick buildings with 18 units each; plus an 8-unit building down the street (total 56).
12 single-family properties and 3 duplexes (15 total).
They acquired them 'last October' (video dated Jan 27, 2021).
6 units rehabbed (one occupied, one leased, four offered at increased market rent).
Foreign.
Hi, Flip and Danny here, co founders of the printed real estate group family of companies.
And today is vlog number seven. This is a vlog series that is intended to be a day in the life of the Freedom Real Estate Group family of companies and its team members. And we are interrupting our regularly scheduled programming for our first video in our apartment series.
So right now we are standing in front of some apartments that we recently acquired just a few months ago, last October, in total it was 56 units. And right now we're standing in front of 48 of those units. The TAN building back here has 12 units, and the two brick buildings have 18 units each. And we have a wee little eight unit right down the street right around the corner.
So this portfolio, the apartments were actually a part of a portfolio. As a seller who wanted to sell all of his properties at once. He had the 56 unit that Flip just spoke about. He also had 12 single family properties and three duplexes, which we like to call the 15 pack. Now, Flip and I wanted to buy the 15 pack, but we weren't quite ready to buy 56 units of apartment complexes. So we decided to wholesale the apartments to another investor. So the investors started doing their due diligence on the apartments, and unfortunately they ended up extending closing the first time. And then I think they extended again a second time. Right. And by the time, I think six months had passed, Flip and I are frustrated. Cause we want those 15 properties. The seller's frustrated because this keeps on going on and it shouldn't have taken that long. So we lost a little bit of faith in that buyer and ultimately had a quick discussion and said, you know what, we're just gonna buy them. So we did. We re signed a contract and closed two weeks later.
And that's when the real story and real fun begins. So we began to develop and write out a business plan that included tenant evaluation over the first few months after we closed on the units. Well, this was basically to figure out who the good tenants were and who the not so good tenants were. And we knew that there were some bad eggs. So once we started getting the answers to these questions, that's when we could begin to transition out the not so good tenants and start moving the good tenants into the rehab units.
That's right. So then when navigating the rehab, there's actually one block away that I can see, but you can't. But we'll probably put it in the video. It's a 200 unit complex. That's beautiful. And those units have Good quality finishes, but not too high end. So we use that information to be able to develop our scope of work. And what do we wanted to do on the 56 doors. And we started with the bigger projects first because everything was occupied except for one vacant. So of course we started on the vacant unit and started rehabbing that. But we started on other things too, such as replacing the roof on this first red brick building right here. And then we also replaced the roof on the eight unit building right down the street. We also replaced water heaters in multiple buildings and a few H vac units. And then the 8 unit also has a boiler that's pretty old. So we fixed it up so at least in working condition right now, but we're putting PTAC systems in those units instead.
So other things that we've been able to accomplish, we've already rehabbed six units. One's already occupied, one has a lease for it, and the other four are now being offered to those other good tenants at an increased market rent. We also have nine units that are currently being actively rehabbed. And then we have two more that just became vacant and then another eight that are the eviction process, which we like to call the coming soon department for our rehab team.
That's right. Now, if all of this sounds like a lot of activity in the last only three months that we've owned it, you are absolutely 100% right. We've been moving fast and going crazy. And if you're a real estate investor, you know that real estate provides the best and the craziest stories. This apartment complex is no different. Fortunately, with our real estate experience and renovation experience, this roller coaster ride is okay. Because if you can take things in stride and stay on top of things, you can actually clean things up pretty fast. And that's what we're going to be talking about in some of our future videos.
So that's where we're going to wrap things up here. Right? Now, we know that you like our videos Short and Sweet. So this is where we're going to wrap things up for this video.
Yes.
Now, because we like these short videos, we're going to be doing a series of videos on these apartments so that we can show you how we're progressing on getting them all rehabbed and all cleaned up. But before we go, we want to get your feedback. We are going to be renaming these bad boys back here and we'd love to get your feedback and your ideas.
Yes. And the street right behind us is Manchester Avenue. So if you want to use a street name and any ideas that you come up with, that would be fantastic.
Manchester Meadows.
Good one, Flip. All right, we're gonna end it here, and we'll see you in the next video. Bye.
Take five. All right.
Okay.
Ready?
Yes.
Okay.
Can you turn the sun on first?
Didn't work.
Okay. Frustrated. We are frustrated. We want to close on this 15 pack and get them under rehab, and it was just frustrating. So we're taking things in stride and staying on top of everything. We are interrupting our regularly. Regularly scheduled. And we are interrupting our regularly scheduled planning. That word sucks.
