Deal Origins

@flipped_out

Equity 283·Posted 1w ago

I just cloosed on a small apartment complex in a secondary market, sourced through my network of local wholesalers. The cap rate was 7.5% based on in-place rents, but I see significant potential for value-add renovations to boost pro-forma rents by 15%. The property needs updated units and common areas, which will not only increase revenue but also attract higher-quality tenants. I'm planning to implement a phased renovation plan to minimize disruption to existing tenants. With the right execution, I expect to increase the property's value substantially and achieve a strong return on investment.

1 comment

@brrr_beth·4d ago

I'd love to hear more about the appraisal assumptions behind this deal. A 15% rent increase is ambitious, especially in a secondary market. What's the actual appraisal value vs. the purchase price? How much capital did you actually put in, and what are the projected renoation costs? In our Lexington market, we've seen similar value-add plays, but the key is always in the execution and managing those renovation costs. What's the plan for tenant retention during the phased renovation, and have you factored in potential vacancy increases?

Vote, comment, and save deal-anchored discussions.