Renovating a small multifamily portfolio in Greensboro, NC
A value-add rental property loan
Assembling a block of rental properties is a different kind of project than flipping a single house. The scale, the coordination and the exit require a lender who understands what a stabilized multifamily portfolio actually looks like. We financed a $550,000 renovation and refinance loan for an experienced Greensboro-based real estate investor to bring an eight-parcel assemblage of duplexes and a single-family residence to rent-ready condition in the city's Old Asheboro/Southside corridor.
Project at a glance
Asset type – Five duplexes (10 units), one single-family residence
Loan type – Refinance and renovation loan
Loan amount – $550,000
Total project cost – $706,350
As-is value – $738,000
As-completed value – $950,000
LTC – 77.9%
LTV – 57.9%
The starting point
The assemblage comprised eight contiguous parcels totaling 37,233 sq. ft., improved with five duplexes, each configured as two 1-bedroom, 1-bath units, and one single-family residence with two bedrooms and one bath. All 11 units were vacant and in varying states of disrepair at the time of financing, presenting a clear value-add opportunity through comprehensive renovation. Two additional vacant lots on the site offer future development optionality, though we excluded them entirely from our valuation analysis.
The investor's approach
The real estate investor behind this project is a licensed general contractor with a track record of renovation and infill projects across North Carolina. The approach here was straightforward: acquire the assemblage, renovate all six structures to modern, rent-ready condition and stabilize the portfolio for long-term rental income, with refinancing or a sale as the ultimate exit depending on market conditions at completion. Planned improvements include new HVAC systems, roofing, plumbing, electrical, flooring, kitchens and bathrooms across all structures. This is a repeat relationship for us, and consistent communication and on-schedule performance on prior financing gave us confidence in the execution plan.
What we look for in projects like this
The real estate investor has direct construction expertise or a verified contractor relationship on-site, not just a budget and a plan.
The exit is stabilization, not a flip. Rental demand in the submarket is real and documentable, not a projection that requires everything to go right.
The project involves scale or complexity: an assemblage, a portfolio, a mixed configuration where conventional financing simply isn't structured to help.
Ready to discuss a project?
We work best with real estate investors who bring experience, a clear strategy and a track record we can evaluate. If you have a value-add rental project in North Carolina, we'd like to hear about it. Contact us to start the conversation.