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Updated almost 8 years ago,
Buying a value add vs high performing
I've been searching for about 6 months for a value-add multifamily property, 20+ units and around an 8% cap. However at the moment I have the opportunity to purchase an already high performing property. It's 20 units and will cashflow about $200/door/month. Occupancy is 100%, rents are already about market rate, and tenants are already paying their utilities, so I can't add value there.
In my mind, the good side is there's low maintenance, but the bad side is, I won't be able to force appreciation/cash out refinance in a few years (my original strategy). What are some other pros/cons?