Case Study: Walnut Manor, Kokomo, IN
- Jul 25, 2025
- 2 min read
Updated: Apr 7
4th Acquisition and 4th Exited Full-Cycle Multifamily Property
This property was acquired in October of 2022, the 4th acquisition and 4th exited full-cycle multifamily property. It was sold in May 2025 to a local buyer.
There were many lessons learned on the prior 3 projects that we applied to this project including basis consideration, renovation plan, and management of the property.
The key pieces that made this project a success were the going-in basis, renovation scope, market, and asset management.
Built in 1930
25 Units
Located 1 hour north of Indianapolis, IN
High-Level Business Plan Summary
Acquired off-market from out of state aging seller, located in a growing market
Resolved major deferred maintenance
Interior Unit renovations & Exterior Improvements
Applied professional property management
Deferred Maintenance Scope
Major Roof Repairs
Major Masonry Repairs
Repair & Seal Windows
Resolve Water Heater and Boiler Issues
Interior Improvements Scope
Turn-Plus on all units:
Refinish wood floors
Repair wall plaster and tile
Install new bathroom fixtures, toilet, repair tub surrounds
New Kitchen cabinets as needed
New Kitchen countertops
Paint
Flooring & Paint in all common areas
Exterior Improvements Scope
Asphalt parking lot repair, seal and stripe
Landscaping
Install new exterior lighting
Gutters/Downspout repairs
Lessons Learned
Maintaining low expenses, especially turn costs. It was very important to analyze each unit turn cost to improve it to a level to achieve the desired rent from a prospective tenant, while not over-improving it. At times, we faced higher than desired expenses which made it difficult to operate.
Occupancy and management: Due to the small size of the property, we struggled often getting experienced great property management at this asset, which has led to us targeting properties 100+ units in size. We faced occupancy issues due to marketing and leasing conversions during the sale period, which delayed us in finding a buyer that would acquire the asset. Ultimately, we were diligent on asset management and successfully sold the asset July 2025.
Maintenance of older buildings: We encountered several surprise large expenses, but fortunately we had set aside a large amount of capital reserves to weather storms. This has led us to refine our "buy-box" to newer asset with less costly capital expenditure exposure.
Financial Results
Purchase Price: $759K
Sale Price: $1.4M
Invested Capital: $313,816
Distributions: $257,883
Sale Proceeds: $379,050
Total Return on Investment: $323,118
Equity Multiple on Invested Capital: 2.03x
Realized IRR: 47.46%
