- 11
- Units
- Pasco, WA
- Location
- 2014
- Acquired
- 3 years
- Hold Period
- 22%
- Average Annual Return
Cardinal Oak acquired this 11-unit building in Pasco, Washington, with the goal of a light renovation and increased occupancy. Opportunities for value-add improvements kept presenting themselves, but much of what was needed turned out to be repair work rather than improvements. The flat roof, for example, leaked occasionally and needed continual repairs, leading us to install a new one. We then repainted the building and added new guard rails for the balconies. Overall the property looked newer, tenants stayed longer, and maintenance needs dropped.
A positive outcome: tenants accepted rent increases and occupancy stayed high. Real estate investors were drawn to the property’s quick access to economically strong regions of central Washington and began contacting us to sell — which we did.
What we learned
- Inspections need to include professional contractors and repair estimates.
- Don’t ignore roof leaks — they don’t fix themselves.
- Develop relationships with city officials who can require major upgrades, and make sure they understand your goals and timelines.
- Don’t throw away the random “we want to buy your property” letters. This property sold to one of those investors — no broker, above full price, quick close.