Comparing our first 12 months of management (2024) to the current 12-month period (2025–2026), the asset has achieved a massive turnaround in profitability and operational efficiency.
We maximized the financial value of this once D+ property to a solid B. Below are some key takeaways from the 1st year of management, reflecting the current status. There is also improved the quality of tenants from warm bodies and young professionals.
Key Financial Highlights:
• Net Operating Income (NOI) Surged 373%: Net profit skyrocketed from $21,274 in Year 1 to $100,785 in the current period—an absolute dollar increase of +$79,511.
• Gross Income Increased 71%: Total revenue rose from $135,138 to $231,429, driven by an extra $77,280 in base rent collections from successful lease-ups and rate hikes.
• Expense Efficiency Gained 28%: Our Operating Expense Ratio (OER) dropped dramatically from 84.3% down to 56.5%, safely aligning the asset with healthy commercial industry standards.
Operational Wins & Strategic Shifts:
• Successful Utility Recoupment: We overhauled our tenant utility back-billing system, boosting utility charge collections from $6,227 up to $26,852 to offset property utility costs.
• Controlled Operating Costs: While gross revenue grew by over $96k, overall expenses were heavily controlled, increasing by only a modest $16,779.
• Reduction in Turnover Waste: High Year 1 turnover costs—such as interior painting—dropped from $16,187 to $3,025.
• Reinvestment into Asset Value: Saved operational capital was strategically redirected away from quick repairs and into building envelope protection, including $8,867 for roofing and $8,561 for window upgrades.
• Stabilized Cash Flow: We successfully eliminated the volatile, month-to-month net losses seen in Year 1. The current year delivered highly predictable, steady monthly profits, with only one planned negative month due to year-end structural improvements.
