Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Creative Real Estate Financing
presented by
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
WHAT TARGET COC RETURN FOR YEAR 1?
Hey BP,
I have a question for anyone experienced in value add deals, specifically large apartment complexes. Being that the rents are below market value, and the loss to lease is high for a lot of value add deals, what are you guys targeting for your Cash on Cash return for Year 1?
Are you guys basing your offer on achieving an 8% cash on cash return (or whatever your goal is) from Year 1? Or are you looking to achieve that post-renovation? I am guessing the answer is post-renovation, but I want to be sure.
Any advice, or feedback is appreciated. Thank you!
Most Popular Reply
Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
- 4,400
- Votes |
- 4,756
- Posts
Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA