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Ep. 122 - VENTURE ON 17th: 22 Units with Immediate 6% Cashflow
In this episode of "Kiss My Assets," Jamison and John discuss a new project called Venture on 17th, a 22-unit townhome building in Uptown Phoenix that they are currently in the process of purchasing for $7.125 million. John highlights the advantages of buying this property below its replacement cost and mentions that we are acquiring the property on a really good deal. He also emphasizes that the building is well-built, easy to maintain, and located in an up-and-coming area.
The conversation shifts to the current market conditions and the timing of buying and selling buildings. John explains that it's not the best time to sell assets, but it presents an opportunity to buy properties at discounted prices. They discuss the lending market and how multifamily properties have more financing options compared to other commercial real estate assets. John mentions that although there may be some tightening in regional banks' lending practices, multifamily properties always have lenders available due to the government's support for housing.
The hosts then delve into the specifics of the building they are purchasing, noting that it is well-leased but has a few vacancies. They recognize that the current rents are below market value and plan to bring them up to market rates, which will improve cash flow. The hosts mention that their property management team gave positive feedback about the building, expressing confidence in its rental potential and highlighting its overall appeal. They discuss their strategy of holding the property for three years and gradually implementing small improvements to increase profitability.
Overall, this episode of "Kiss My Assets" focuses on Jamison and Johns' excitement about their ongoing purchase of Venture on 17th, a well-built property in a promising location. They emphasize the advantages of buying below replacement cost, the availability of financing options for multifamily properties, and the potential for increased cash flow by bringing rents up to market rates. They also highlight the importance of their property management team's feedback and express confidence in their ability to execute successful projects in the current market conditions.