WhiteRock

WhiteRock Value Add Case Study 🚀 We are thrilled to share the success of our latest portfolio acquisition – 1 of our two-family multifamily properties acquired through direct-to-seller mailers. This off-market deal is a prime example of our commitment to value-add strategies and rigorous market analysis. Typical as-is market 2-4 family properties range from $200k-$225k, with the higher end units (typically 2 families tend to be on the higher end in this market place closer to $250k per door) For this acquisition, we secured the property at $175k per door with the intention of some heavy lifting. The 3-bed unit required a heavy value add, including a full gut renovation of the kitchen, bathroom, and one bedroom. We also added in-unit washer/dryers and dishwashers, which we projected to have increased rent by $250-$300/month. Additionally, we researched off-street parking, to add another $100/month in rent. Pre-renovation, the 3-bed unit rented for $1400/month, outdated for what seemed to be over 30 years. With a $20k renovation, we managed to increase rent from $2575/month, a 45.6% increase, adding $1175/month. Total cost after renovation was $195k per door. With an annual rent increase of $14,100, we added $209k in value to the portfolio, using a 6.75% cap rate. (Keep in mind, this metric/financial breakdown works predominantly in scale with larger portfolio acquisitions). This strategic investment showcases our ability to identify undervalued properties, execute cost-effective renovations, and significantly boost rental income, adding substantial value to our portfolio. A big win for the WhiteRock team! 🏆 #RealEstate #Investment #ValueAdd #WhiteRockInvestments #Multifamily

🍾 We are thrilled to share the latest milestone achieved by our team. We've successfully acquired a two-family property in Nashua, NH, which had been on and off market for months. This acquisition presented a substantial value-add opportunity, and we embraced the challenge with enthusiasm and determination. After negotiating agreeable terms, we dove headfirst into a significant renovation project. The property underwent a complete transformation: ✅We gutted and revamped the bathroom and kitchen along with all of the bedrooms (the master bed was the trickiest as we did a bit of skim coating to get rid of the overenlarged popcorn ceiling look!! Yum 😋). ✅Installed new vinyl plank and cork board flooring. ✅Updated trim and paint throughout the entire unit. ✅Overhauled the plumbing and electrical systems including: - reconfiguring the kitchen sink from the laundry room to the kitchen itself 🤯 - added new hookups for washer in the laundry room - installed recess lighting - rewired our electrical and added over 10 new circuits! ⚡️ - added a whole new electric panel Thanks to the exceptional skills and dedication of our in-house construction team at The Missiti Companies, we were able to save well over 50% on labor and materials. This efficiency not only kept our costs manageable but also allowed us to invest in higher-quality finishes, enhancing the property's overall value. This project stands as a testament to our commitment to identifying and maximizing value-add opportunities, leveraging our internal resources to achieve outstanding results. Looking forward to more successful ventures ahead! #WhiteRock #TheMissitiCompanies

🚀 We’ve just completed a strategic renovation on one of our 2-bedroom units in Nashua, NH, embodying our core principles of value add ! Our approach to renovation is methodical, pending the maintenance and needs of the unit (Our in-house construction management team certainly helps ;)- Pre-renovation, the unit commanded a rent of $1,250/month. Post-renovation, we’ve elevated this to a stabilized rent of $2,000/month, reflecting a $750/month increase. Annualized, this translates to an additional $9,000 in revenue. When we calculate the value added to our investment we divide this $9,000 by our current cap rate of 7%, we find the true value added to the building: an impressive $128,571. By making these strategic investments, we are not only enhancing the quality of living for our tenants but also driving significant, sustainable growth in our portfolio. The key to success lies in understanding the long-term value of strategic investments and disciplined execution. Proud of our team’s commitment to excellence and excited for the future projects that await!