Choosing the Right Property
Through years of experience in the industry, our team of experts has developed a proven system to maximize profits. This starts by finding properties with the greatest transformation potential. We use our industry connections to find qualified properties from sources like property auctions, probate courts, and pocket listings. We typically complete a detailed due diligence analysis of dozens of properties before making offers on a few properties with exceptional yield potential.
We search for properties in up-and-coming submarkets, which are centrally located, in neighborhoods that have solid amenities like entertainment, parks, job opportunities, and good schools, and that are seeing strong rental increases and property value growth.
We look for existing, well-priced multi-family properties, typically with 50 units or fewer, that have the potential for us to immediately add value by improving the overall look and feel of the property. We specifically target properties that have been mismanaged, have below-market rents, or are otherwise performing below the property’s potential. These properties provide opportunities to push rents higher.
If, for example, we find a qualified property that is only 70-80% occupied, we see this as an opportunity to immediately renovate the empty units, which we can fill with qualified renters at a higher rental rate. Similarly, if we find a property with 10-20% tenant turnover, we know that we will be able to renovate that percentage of the units as existing renters vacate the property. Providing higher-quality interiors will allow us to increase the rental rates, while also reducing turnover of the higher-value units.