Apartment Acquisition

I've reviewed the multifamily property, and here's my take: the cap rate is 6.5%, which seems decent for the area. In-place rents are around $1,200, but pro-forma rents could reach $1,800 with renovations. The value-add plan includes updating kitchens, bathrooms, and flooring, as well as improving exterior amenities. I estimate renovation costs at $20,000 per unit. With 20 units, that's $400,000 total. Potential resale value could be around $2.5 million, assuming a 7% cap rate. It's a solid investment opportunity, but we need to carefully manage renovation costs and rent growh to maximize profit.