Investment Overview
- Total Investment: $50K
- Description: Joint venture with a high-net-worth investor to source, acquire, renovate, and successfully exit a single-family rental property in Birmingham.
Investment Strategy
- Acquisition: Tracked the asset for several months and initially contracted it at $225K. Following an inspection, the seller refused further negotiations, leaving the property on the market for weeks. This allowed us to rebid at a significant discount to after-repair value (ARV), even after factoring in necessary renovations.
- Value Creation: Executed a full-scale renovation within 90 days, transforming a distressed asset into a premium rental. Key upgrades included replacing flooring, demolishing non-load-bearing walls to create an open-concept layout, and modernizing interior finishes to align with market trends. The property was successfully leased within the first month of listing.
Key Results
- Occupancy Rate During Investment: 75%
- Entrance Gross Yield on Cost: 11%
- Property Valuation Appreciation: +60%
- Estimated Investor Returns: 53% IRR | 1.9x Equity Multiple
Conclusion
This investment highlights Strand Capital’s expertise in identifying and repositioning undervalued assets for maximum returns. By exercising patience, strategic timing, and disciplined acquisition tactics, we secured the asset at a deep discount and executed a high-impact renovation that dramatically increased both value and rental appeal. The result: a distressed property successfully converted into a premium rental, delivering exceptional appreciation and market-leading investor returns.
Figures shown exclude transaction fees, taxes, and related expenses. Past performance does not indicate future results. Please see our Terms and Conditions
