The Waller Group is proud to present the 78.8% occupied, 104- unit value-add property in Blytheville, AR. Current ownership is in the process of flipping 20+ of the 104 units. Those rents go higher by 15-20%. They are primarily in Courtyard, Hollywood, and Pear Tree. The flips involve new flooring, new appliances, new paint, and fixing the walls and electrical. The property is available because current ownership is looking to reinvest proceeds.
Current ownership is achieving $266,774 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $134 / unit, which is a $0.19 / sqft bump. With this bump, new ownership can achieve an annual NOI of $456,584. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills.
The property is currently self-managed. Proforma financials were underwritten with a 3% management fee.