2020 in review: What worked? What didn't? What's in store for 21?

[David Gotsill]

What clothes does a house wear?

(wait for it)

Address.

With that out of the way, it's the time of year where I look back at what worked, and what didn't, for the last 12 months.  I'm sure many of you do the same.  Would love to hear your thoughts (and your jokes).  I'll start with just 1 or 2.

What worked:

• Being in a resilient market is paramount.  My partners and I focus on Huntsville, AL.  Even with the circumstances caused by the pandemic and political uncertainty, the powerful drivers underpinning the market ensured that our properties there continued to perform strongly.  We were able to continue to raise rents and faced little difficulty with collections.  
• Power of a Team.  I was reminded of the inherent power of being part of a team.  Despite the challenges of 2020, working with a team of investors with whom I align on investment strategy and enjoy spending (virtual) time with allowed me to continue to expand connections and deals.  We closed one $2M transaction early on in the pandemic, and got another $2.6M one under contract this fall.  Without the team, the events of 2020 likely would have left me on the sideline.

What didn't:

• Difficulties in C-class.  I wasn't able to raise rents, had collection issues and am likely looking at eviction (if permitted) and/or extended vacancy in Memphis. 

What to focus on in 2021?  For me, it starts with doing more of what worked in 2020:  resilient markets and a strong team.  Focusing on these 2 things promises to make 2021 a fruitful year with at least a new deal or two.  But to add to that, one goal I have is to further review our properties to ensure their operation can handle even more bumps in the road, no matter what 2021 may bring.