8-Unit New Construction · Rexburg, Idaho · Adjacent to BYU-Idaho
This opportunity centers around a fully occupied, newly constructed 8-unit multifamily property near BYU-Idaho acquired through a favorable subject-to structure with below-market in-place rents and meaningful operational upside.
The business plan focuses on conservative rent stabilization, selective furnished/co-living optimization, strategic reserve protection, and refinance-based capital recovery.
More importantly, this acquisition establishes a direct relationship with the seller, creating access to a future pipeline of additional seller-financed multifamily properties.
This is not intended to be a one-off transaction — it is the foundation of a long-term portfolio growth strategy.
Existing operational income from day one. No initial lease-up required.
Current in-place rents remain below nearby comparable market rates, creating operational upside through stabilization.
$200K+ reserve allocation designed to support operational flexibility, stabilization runway, and investor protection.
Recently completed construction reduces deferred maintenance exposure and near-term capital expenditure risk.
Seller carry structure supports operational flexibility during the stabilization and refinance period.
This acquisition establishes future opportunities to acquire additional seller-financed multifamily assets from the same ownership group.
Location advantage: Walking distance to BYU-Idaho in a supply-constrained student housing market with consistent rental demand. The property consists of four newly constructed twin-home buildings with shared garages and modern finishes positioned within a stable long-term rental corridor.
BYU-Idaho continues to support long-term housing demand in the surrounding rental market, particularly for newer multifamily inventory near campus.
Campus housing limitations continue pushing demand into nearby private-market rentals, supporting occupancy for well-located multifamily properties.
Select unit conversions may support additional operational upside through furnished or co-living strategies commonly utilized in student-oriented rental markets.
The total capitalized structure is intentionally over-capitalized — not over-leveraged. A meaningful portion of investor capital is allocated toward reserves and operational runway to protect the investment from day one.
"We are not over-leveraged — we are intentionally over-capitalized for stabilization and investor protection. The structure was designed around long-term stability and capital preservation rather than maximizing leverage."
Focus on operational stabilization, lease renewals toward market rates, and reserve-backed flexibility during the initial ownership period.
Select unit conversions may support additional operational upside through furnished or flexible rental strategies commonly utilized in student-oriented housing markets.
Following operational stabilization and NOI growth, the business plan targets a refinance event designed to improve financing structure, strategically reduce investor exposure, and preserve long-term equity participation.
Income & Expense Summary
| Line Item | Annual |
|---|---|
| Gross Scheduled Rent (Current Annualized) | $140,520 |
| Property Taxes | $14,264 |
| Insurance | $3,128 |
| Utilities (W/S/G + Internet) | $6,663 |
| Net Operating Income (Actual) | $116,465 |
| Projected Stabilized NOI | $100K–$150K+ |
Current Rent Roll Snapshot
| Unit Type | Units | Current Avg Rent | Market Rent Target |
|---|---|---|---|
| 2 Bed / 1 Bath | 8 | ~$1,464/unit | ~$1,600–$1,650/unit |
Current in-place rents remain below nearby comparable new-construction inventory, supporting operational upside through future lease renewals and stabilization.
Projected Metrics Comparison
| Metric | At Acquisition | Operational Target |
|---|---|---|
| Gross Monthly Rents | $11,710 | Operational optimization target |
| Monthly Debt Service | $7,600 | $7,600 |
| Investor Pref. Return | 8% / $52K yr | 8% / $52K yr |
Refinance Strategy (12–18 Mo)
$52,000 per year on $650K invested. Accrues from date of funding. Paid as a priority distribution before any operator profit share. Quarterly target once the property is stabilized.
Meaningful long-term participation in future asset appreciation and equity growth. The investment structure prioritizes preferred return distributions, strategic capital recovery through refinance, and continued long-term equity participation. Final terms documented in the operating agreement.
Refinance strategy designed to return a substantial portion of invested capital while preserving long-term equity participation and future upside exposure. A second refinance event targets continued capital recovery as NOI grows.
After substantial capital return through refinance, investors continue participating in long-term equity upside and future appreciation. Operators retain the option to facilitate a future equity buyout based on market valuation at that time, creating multiple potential exit pathways while preserving alignment long term.
$650K deployed into acquisition, reserves, and stabilization capital. Preferred return begins accruing from funding date. Property is already fully occupied and generating operational income.
Rents optimized toward market rates. Select furnished/co-living conversions completed. NOI growth targeted while reserves provide strategic runway and downside protection.
Preferred return distributions prioritized. Refinance strategy designed to return a substantial portion of invested capital while preserving long-term equity participation and future upside exposure.
Future refinance or buyout events may provide additional pathways for strategic capital recovery while preserving long-term participation in asset appreciation and future acquisition opportunities.
Covers all mortgage payments for 18+ months regardless of vacancy. Structured reserves are intended to support payment continuity during stabilization. Fully funded before keys are handed over.
Existing operational income from day one. No rent-up risk. No vacancy assumptions needed. The property is already performing before you write a check.
Existing $1.18M loan assumed via subject-to structure. No rate risk. No new bank approval needed. Existing financing already in place through the acquisition structure.
The $400K seller second is deferred at zero interest for 24 months and retired at refinance from loan proceeds — not from cash flow.
2024-built property means no deferred maintenance, no aging systems, no surprise capital calls. Everything is warrantied and new.
Purchasing at $1.9M with a prior appraisal of $2.25M. Built-in acquisition basis cushion of ~$350K provides meaningful downside protection from day one.
Closing on 425 Harvard Ave establishes a strategic relationship within a broader portfolio of potential future multifamily acquisition opportunities in the Rexburg market.
The seller currently owns multiple additional properties in the area, many believed to be free-and-clear based on public records and market research. While future acquisitions are not guaranteed, the relationship may create additional off-market opportunities over time following a successful initial transaction.
Any future portfolio expansion should be viewed as supplemental strategic upside — not as underwriting required to support the current acquisition.
"Acquire one asset. Unlock an entire portfolio."
Focused on creative acquisition structuring, investor relations, and value-add multifamily strategy. Leads relationship development, deal sourcing, and capital communication for the acquisition team with a strong emphasis on conservative structuring and long-term portfolio growth.
Entrepreneur and business operator with a strong background in operational management, execution, and financial coordination. Brings disciplined operational oversight and long-term strategic alignment to the partnership. Oversees operational execution and financial coordination for the acquisition.
The seller has communicated directly — and through representation — alignment with the relationship-driven structure and long-term vision for the property. The seller has already agreed to absorb the broker fee and provide a seller credit at closing, reflecting a well-aligned transaction structure.
As with any real estate investment, there are risks involved. Our focus from day one has been structuring this opportunity conservatively — with reserves, operational runway, and multiple exit strategies already built into the business plan.
Key Considerations
Rather than maximizing leverage, this investment was intentionally structured around capital preservation, reserve strength, and long-term operational stability.
All projections and timelines are estimates only and not guarantees. Investors should consult their own legal and financial advisors prior to making any investment decision.
The property is currently held as a single parcel under one tax record and is operated as a commercial multifamily asset. During the original development process, preliminary subdivision documentation was reportedly prepared by the owner for potential future parcel separation.
At present, the business plan is intentionally focused on maintaining the property as a stabilized multifamily/commercial asset rather than subdividing and selling individual units.
One important reason for this approach is that commercial multifamily valuation is primarily driven by the property's income performance (current and projected NOI), whereas individually separated duplex/twin-home valuations would rely more heavily on residential comparable sales. Given the uniqueness of the asset and limited directly comparable inventory within the market, maintaining the property as a unified income-producing commercial asset may provide stronger long-term financing and valuation flexibility.
That said, the potential future ability to subdivide the units individually may still create an additional strategic exit option if market conditions or investment objectives support it. This layered optionality provides multiple potential paths forward, including:
Any future subdivision plans would remain subject to final legal, municipal, zoning, and approval requirements.
What You're Investing In
⏱ Where Things Stand
We are actively reviewing aligned capital partners as the acquisition moves toward closing. This is a single-partner raise — one relationship, one clean structure. Complete the form and we will be in touch within 24 hours.
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— Adam Breiling · Capital Edge Venture Partners
