How Did You Win in 2008 With Apartments?

[Tony Nguyen]

Hi all,

I'd like to ask the veterans how their apartments performed during the crash 10 years ago. My portfolio grew the most in just the past couple of years so I didn't experience what it was like being a Landlord during the crash. When looking at my portfolio of apartments, I ask myself where I see risk, which I know it's there, but I can't find it:

• The mortgages are all on 10-15 year balloons 
• No capital improvements are needed as all units were renovated once purchased
• I bought B-class properties in C-class neighborhoods at 9-10%+ cap rates 
• Our overall LTV is about 60%
• Overall revenue is over $675K a year (ie, one property can cover the other should there be surprises, etc)
• I have a management team who only manages my properties, not a third party

If you see where I can further protect my portfolio, please feel free to share because I'd love to hear your thoughts. Thank you in advance!