thank you Have you improved the value or purchase at a significant discount? 

Due to new tenants, and improvements I made to the building even at a conservative 8% cap rate (my purchase cap rate) the building is worth around $1.6M.

*Most* of the time, especially early in your investing, you can book enough losses to offset income between improvements, depreciation, taxes, insurance, mortgage interest, vacancies.

After some rehab, it will improve in value.

Up, down, flat, up, flat, down, down, repeat…And to quote Economist Mark Zandi for the third time today, “[The Fed’s] got everything they need to start cutting rates…It’s just a question of precisely when.”The housing market is improving, the supply of homes on the market is up double digits this month, and in my business I am seeing a healthy spring flow of demand for both homebuyers and investors.

It fits within our buy right criteriaWe own 12 units right next door.Newer vintageThe three beds are in high demand, and we are blowing away the 1% ruleThere is very little cap exWe focus on PPU (profit per unit), and this is going to profit nicely and add to our scale in that part of the marketExit strategy is to refinance our capital out when rates drop, and to hold long term.You have to be willing to take what the defense gives you, and you have to understand all of the investing strategies and know when to use them2021 and 2022, we only did about 200 units, smaller deals, but very profitable and we’ve refinanced all of our capital.2023 was an excellent year. 128 units, 105 units, and 97 units.If you aren’t doing deals, you can always be improving operations, meeting more potential investors, and creating more relationships.Life is like real estate.

You can house hack and improve value.4. 

I also plan on developing an ADU to permit 2 + beds 1 bath unit and community improvements such as installing solar panels, specified parking areas, common areas, a community garden (for tenants only), and rehabbing each unit to force appreciation.  

Doing this kind of improvement in a traditional stacked condo will likely be pretty tough, but I have actually come across some where something like this would work.

Provide a detailed scope of work to potential contractors, specifying the renovations and improvements you want for the house.