Case Study: A 6-Unit Multifamily Turnaround That Shaped How We Operate Today

Most people only talk about their wins after everything is cleaned up, stabilized, and refinanced.

I want to talk about one of the deals in 2022 that actually shaped how Haven Management Group operates today — because it didn’t go perfectly, and that’s exactly why it mattered.

This was a 6-unit multifamily value-add project at 515 Davis St, near Radford University. While I had ownership in this deal, we intentionally approached it the same way we now approach client assets through our Haven Turnaround Team.

At the time, this was one of our first true deep value-add multifamily projects. We were confident in the strategy, but still learning how to execute at a high level — in real time, with real capital on the line.

The Deal at a Glance

Property: 6 units (all 2BR / 1BA)
Market: Radford, VA (2 blocks from RU campus)
Condition: Vacant, distressed, non-performing
Strategy: Full systems renovation → stabilize → refinance

Capital & Outcome

Purchase: $310,000
Renovation: $350,000
Total basis: ~$660,000
Annualized gross income: $100,800
Appraised value post-stabilization: $1,125,000
Cash-out refi at ~70% LTV: ~$650,000

The construction loan was taken out within roughly 12 months, returning capital and significantly de-risking the project.

What the Original Plan Looked Like

On paper, the plan was straightforward:

Full interior and exterior renovation
Major system upgrades
Bring rents to market
Stabilize quickly
Refinance into permanent debt

The plan itself wasn’t wrong — but like most first-time deep value-add projects, execution revealed gaps we hadn’t fully priced in yet.

Scope of Work (This Was a True Reset)

This was not cosmetic. It was a systems-level overhaul.

Exterior

New roof
New windows and doors
Full exterior paint
Parking lot paving
Deck rebuild and staining
Landscaping

Systems

New mini-split HVAC systems (6)
Full PEX plumbing replacement
New PVC sewer system and main line
New electric service and panels throughout

Interior

Fully remodeled kitchens and bathrooms
New drywall, flooring, trim, paint
New fixtures and appliances in every unit

The end product matched the intent — clean, durable, and positioned for long-term performance.

Where Reality Differed From the Plan

This is the part small multifamily owners actually care about.

Timeline: Renovation took about 10 months instead of the planned 8
Budget: We came in roughly 20% over the original rehab budget
Lease-Up: Demand was strong, but we intentionally leased slightly below market to create momentum during stabilization. Raising rents on those units gradually as we went.

None of these issues killed the deal — but they absolutely tested it.

The Human Side (Often Left Out)

There was also something else we don’t talk about enough in this business: first big client-level deal anxiety.

Even with experience, carrying a full renovation, multiple trades, lender timelines, and lease-up pressure led to some sleepless nights. But those moments forced us to:

Adjust internally
Build better controls
Pressure-test our assumptions
Create systems instead of relying on gut feel

That pressure is what gave us confidence we could execute not just for ourselves, but for clients.

How This Deal Changed Our Operating Model

This project directly led to the playbooks we now use on every turnaround:

More conservative underwriting
Larger contingencies
Clear separation between construction management and asset management
Better KPI tracking during renovations
Earlier lease-up strategy planning
More disciplined reporting and communication

In short, this deal helped us move from “investors doing deals” to operators running assets.

Takeaways for Small MF Owners

A few lessons I’d pass on:

Deep value-add works — but only if execution matches underwriting
Systems matter more than finishes
First deals almost always take longer and cost more than planned
Momentum in lease-up is often more important than perfect pricing
The real value is created during execution, not on the spreadsheet

Why I Still Reference This Project

This wasn’t our biggest deal. It wasn’t our fastest. And it definitely wasn’t our easiest.

But it was the project that:

Shaped how we operate today
Built confidence in our turnaround model
Created the foundation for the Haven Turnaround Team

If you’re looking to acquire assets like this and need a team that knows how to execute, we’re your go-to multifamily turnaround specialists in the NRV and Roanoke markets.

Happy to talk shop with owners, investors, or industry professionals working through similar projects.

— Cody

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