Victory Apartments is a 12 unit building located near downtown Cloquet, Minnesota.  It consists of efficiencies, one and two bedroom units.  Rents range from $350 to $550 per month.  It has been profitable for the past three years.  It is professionally managed and it is 100% occupied.  Victory is HUD certified and has also been certified by the housing authorities for the Fond Du Lac Reservation, Carlton County, MACV (The Minnesota Assistance Council for Veterans), and other government programs.  The tenant mix is quiet and respectful, and rents are paid on time.   

Improvements and Grant Money
Victory Apartments was chosen for a citywide housing grant in Cloquet.  And so in the past several years, the apartment building has received the following capital improvements: Maintenance free vinyl siding, New vinyl windows, New roof, New hot water heater, New boiler, New fire alarm system.  And in the past two years, the apartments have received fresh paint, some new flooring, some new cabinets, and a number of new appliances.   

Ways to Increase Income
Eight of the twelve apartments have not received rent increases in five years.  Furthermore, the owners have been approached by various businesses in Cloquet that would like to use the basement of Victory Apartments for dry indoor storage and other uses. 

Energy Star Audit
In 2006, Victory Apartments received a Energy Star audit.  The new boiler and water heater are also part of the Energy Star program. 

Financials - Monthly
·          Income = $4,961 per month

·         Utilities =  Sewer = $86, Electric = $339, Garbage = $127, Gas = $271, Water = $35

·          Taxes = $351, Insurance = $280, Maintenance = $104

·          Miscellaneous = $175

·          Gross Profit Before Debt Service = $3,193/ Monthly