Stowe Capital Updates from 2022

Refinancing 11 Alexandia Drive

This year we refinanced our property at 11 Alexandia Drive in Nantucket. After finishing construction of a new "tertiary dwelling" (a brand new 2 bedroom, 2 bathroom apartment), getting brand new landscaping, and wrapping up a street-wide project in which the entire street was re-paved, we thought it'd be a good time to re-assess the value of the property with the bank and refinance.

The new apartment increased the value significantly and was re-appraised for more than twice what it was assessed for when we initially purchased it in 2017. This large equity increase allowed us to re-finance the property and take out some funds for investment with our mentor and partner Matt Picheny.

Investments in 820 Crossings

820 Crossings is a 416-unit apartment building in Fort Worth, TX. After analyzing a number of limited partner investments with our mentor Matt we decided to pull the trigger on 820 Crossings. The business plan with the Crossings is to make improvements to the buildings and slowly turn over the units while simultaneously upping the rents to account for the upgraded features and amenities. We're excited to see the growth of 820 Crossings from and get a first-hand look at the process behind the scenes from our mentor Matt, who's the lead sponsor on the deal.

First Year of Airbnb

For the first time this year, we decided to Airbnb the top unit of 26 Macy's Lane. Historically we had always had longer-term seasonal tenants or year-round tenants. We worked hard to totally revamp the unit and get all new amenities, such as new bedding and linens, new bathroom products, new silverware and dishware, an electronic lockbox on the door, and an updated security system.

All the hard work and preparation paid off as we got our first handful of guests to leave stellar reviews. As we wrap up the year it proved to be a great move financially, enabling us to extract more revenue from the unit while at the same time keeping the unit in tip-top condition. Click here to book a stay!

Downstairs of 26 Macy's Lane Airbnb looking sharp!

Touring Submarkets in Charleston, SC

In April we took a trip to Charleston to explore the market and meet with brokers. We walked a 180-unit apartment with a broker and got a much better feel for the submarkets of Charleston. We plan to keep in touch with the brokers we met in that area and keep our eyes out for future apartment deals in one of the submarkets we narrowed down. This trip was a huge learning opportunity and a ton of fun! We love the Carolinas as a potential state for future investment and definitely are very fond of Charleston.

Other Updates

New CPA: Among some of the other notable updates from this year include switching CPAs to Max Bauer from Wellesley, Ma. Max has a deep knowledge of real estate tax and how to structure holdings companies for maximum benefit and simplicity. Plus he's a great guy. We're excited to have him on board.

New Deck at Macy's: Another improvement for 26 Macy's Lane that happened towards the end of the year was a new back deck! This was much needed as the old deck was small and the new one will really open up the backyard for hosting. We're hoping this new deck will add even more appeal to Airbnb rentals next summer.

Mentoring with Matt: We continue to keep a relationship with our mentor and friend Matt Picheny. Matt has been a huge source of education and inspiration for us over the past year. He just recently published his new book (The Backstage Guide to Real Estate Investing) which I highly recommend to anybody interested in real estate investing. It's been an honor and a pleasure having his mentorship.