Identify a Market To Invest

HAYLEN Case Study

The Challenge/Problem

Our client was a new investor who just sold his duplex, and he would like to complete a 1031 exchange into a 5+ multifamily building. However, he searched through entire California and found it overwhelming. 

The Strategy

We conducted a market study and researched over 12 cities of interest. Based on our analysis, we identified Stockton as the best candidate for an emerging market. We soon found a 12 unit apartment building, with rental rates of $500/unit. We conducted our 10-Year Cash Flow and IRR analysis and determined this property is an ideal value add investment opportunity. We negotiated down on the offer price and secured the purchase for $630,000.

The Result

Within 1 year of purchasing this property, our client was able to upgrade the building and increase the rental rate to $900/unit. We eventually sold the property for $1.1m within 15 months of ownership. 

We use cookies and tracking technology in connection with your activities on our website. By viewing and using our website, you consent to our use of cookies and tracking technology in accordance with our Privacy Policy.