My partner, Michael, got a nice call today from one of our investment clients. A couple of years ago we helped him and his wife out in buying an 8-plex building in the south end. Ok, maybe Renton isn’t too “south end” but it’s south enough for us here in Seattle.
Some of the good news he was sharing with us was that the building is almost completely remodeled and he’s down to only one more unit. What’s been interesting for him is that the tenant in that last unit has been getting his rent increased regularly (he’s on a month-to-month lease) but apparently it hasn’t been enough to cause him to move just yet. Rents are up in the building from around $550 a unit to $700 per unit in just the last 2 years.
Granted, there were some initial surprises – they found out one tenant had been accumulating stolen cars on the property site. This was discovered when the police broke down this tenant’s door and hauled him off to jail. Guess that meant they didn’t have to go through an eviction process on that guy. 🙂
With the raising of rents and the improved condition of the property we are very certain that this property has also gone up considerably in value. All good news for these clients. Buying the property in a distressed condition was a purposeful move on our client’s part and was calculated into the overall cost of acquisition for the property so we expect the analysis we did at the time of purchase proved well for them.
We’re always happy to hear when our clients are making more money on a property we helped to sell to them. Congrats to this client and best wishes for many more years of profits to you!!!
