Our projected average CaC is 8.4%, after completion of our value add initiative (40 units).My teams experience is in private equity space, so am curious to what non-institutional LP's look for in deals.What are the minimum preferred returns?

Just starting out as RE investors - we have a CA C-Corp started via a ROBS strategy. 

I paid twice for many of their repairs, hiring other contractors to fix up their mistakes.Horror stories: My most recent ex-manager's rental agent mistakenly told a prospective tenant that there was CAC in the unit; this started the relationship on a distrustful note, and the tenant later put rent in escrow over issues she could not get resolved.

If you think the turn key companies numbers are right, then you need to decide for yourself if a 9.5% CAC return is attractive to you.

Im an electrical contractor out of CA (C-10).

And with each option you have to figure out the dollar amount.But when you know everything has to go anyone should be able to look at it and say "well since it's a 2500 sq ft single family with a 2 car garage it should take me $85k (that's what it costs down here) to do a complete gut rehab".So if you're saying that this house needs EVERYTHING (siding, flooring, kitchens, bathrooms, all new plumbing, all new electric, new roof, CAC) then a contractor should be able to give you a range without looking at it.

The next time a developer comes along, you should know all about FSR's/land value and the cost of PSF for development and the sale price of new development PSF/ Community Amenity Contribution (CAC)  Then you will have a good idea of how much your land is worth to a developer. 

A sincere thank you.Best, Alan CA C-10 650521

https://codes.findlaw.com/ca/c...There are many ways to deal with problem properties and many ways to profit -if you are a problem solver.

Looking for first deal and finding it difficult to break 1% rule or >5% CaC when evaluating properties in Durham.