Sonos Capital
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Case Study 1 · Value-Add Turnaround

The Turnaround of a Neglected 65-Pad Midwestern Community

Submetering, paving, and 15 infill homes took NOI from $78,000 to $215,000 in 24 months.

  • Acquisition profile: 65 pads, 40 occupied, 25 vacant. Purchased with 80% seller financing at 5.0% interest.
  • The problem: master-metered water with $2,500/month in leak losses, pothole-ridden gravel roads, and no on-site management.

The Execution

  1. 1.Installed digital submeters on all pads; the water bill dropped 45% within 60 days.
  2. 2.Paved and seal-coated internal streets.
  3. 3.Placed 15 pre-owned homes and sold them via chattel loans over 18 months.

The Outcome

Net operating income increased from $78,000 to $215,000, and the property appraised for 2.4x acquisition cost within 24 months.

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