High Ridge Apartments is located in Washington. This property consists of a 16 units in total. Upon acquisition, this asset suffered from extreme mismanagement and deferred maintenance. This included a lot of fun challenges! Leaky faucets, bed bugs, felons, drug dealers, trashed units, etc. While many investors may view these attributes as a deterrent, we were very bullish considering the purchase price. Due to getting a great deal, we we're able to purchase at a level which provided cash flow from day one.
Furthermore, we were confident we could perform repairs and thus increase overall cash flow and value as a result. Over a period of six months, we renovated units, painted the exterior, implemented professional management as well as added new branding and signage.
The results of this reposition has been positive in every way. Tenants now have a respectable place to live and we have increased cash flow and the value of the asset significantly. Based on a recent appraisal, we estimate the overall value to be 1.8 times the purchase and renovation costs. We plan to hold this asset as a cash flow investment for the foreseeable future.