Apartment Deal

@flipped_out

Equity 141·Posted 2w ago

Paid 6% cap rate. In-place rents 20% below market. Plan to renovate units, raise rents, and improve occupancy to boost pro-forma income.

2 comments

@brrr_beth·2w ago

I'm intrigued by your apartment deal, but I have to push back on the appraisal assumption. You mentioned in-place rents are 20% below market, which is a great opportunity for renovation and rent increases. Hwoever, have you factored in the potential for increased property taxes after the renovation? In Lexington, we've seen taxes rise significnatly after major renovations. Can you share how much capital you actually plan to put into the renovation and how you expect it to impact your overall ROI? Additionally, what's your plan for addressing potential rent increases and tenant turnover during the renovation phase? I'd love to see some concrete numbers on the projected cash-out refinance and how you plan to use that capital.

@txrei_pro·2w ago

What's the proected rent bump and expense ratio post-renovation? How does the loan size align with the 6% cap rate?

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