Christian Osgood shows a trashed apartment at his 8-plex in Abilene, Texas, with bugs, feces, and floor damage. He bought the campus for roughly $50,000 per unit at 90% occupancy and projects $6 million upon completion. Regular inspections and cleanup are how landlords actually add value.
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All right, I know landlords are evil and we all hate them and we don't want anyone to ever make any money providing housing ever. That being said, uh, we occasionally do actually fix problems. We're about to go into one of apparently the grossest units that we have. I've been told this is a biohazard. This is my first time seeing it, so I'm going to show you what it really looks like getting your hands dirty as a landlord. Let's check it out. So there's the nasty there, floor damage, nasty nastiness. Now for context, that's a very ugly unit at a very pretty campus. We're here in Abilene, Texas. This is one small part part of the campus. These are a bunch of huge 8-plexes. It has an office, a pool, a basketball court. There's kids running around the apartment. It's a super safe, clean area. Not every unit is nasty like that one. Apparently my staff actually got in there and started the cleaning, so it was a lot worse before I came in. But there were still bugs, poo in the carpets. It smelled unbelievably bad. What I want to illustrate is that we actually get paid to solve the problems. So if you can solve each of those problems, you end up with a campus that looks very much like this. Pretty Safe, well-maintained, kids running around, serviced ACs, the whole nine yards. Just a nice, clean, well-maintained place to live. It's not perfect yet. They fixed this up 6 months ago. Check this out. Hate this. Look at all the trash that's around. Just got blown to this end of the campus. There's always stuff to clean up. It's a huge lesson for me. Always visit your properties. You're always going to find something to improve. That's the thing to do here. So by next week, this will all be gone. Other than that, though, just want you to appreciate we bought this, it had about 90% occupancy. So there were a bunch of people in here that had units exactly like that and worse. Today, my biggest problems are we got to clean up the exterior trash, which is super nasty, and we'll see if we get done. We're not slumlords, but I want to show you the types of problems that you fix. So what do you actually get paid to fix these problems? Well, I'm glad you asked. This deal, we will probably make about $6 million when we finish the whole thing. We actually picked up this entire campus for about $50,000 a unit here in Abilene, Texas. That is a crazy price.
