It really helps to see how Redwood properties stack up in terms of returns versus popular metro areas (from what I’ve heard).What would you do first if you were to break down the property’s biggest potential value-add?

Assumed nothing could possibly go wrong in the next 5 years what you want when you look at an investment property is to know the current rental amounts, specific expense items, and conditions of the building, grounds, and mechanical systems.  

A 1031 exchange is a smart choice for your parents, reducing immediate taxes to $70K (capital gains on $300K boot + $25K depreciation recapture) versus $148K without it.

Total system abusers.

The ranking system. 

Understand Replacement cost versus original building costs. 

The key is to standardize property quality and management systems, which would appeal to buyers seeking scale.If you’re thinking long-term, holding these properties for cash flow while leveraging local appreciation is also a strong play.

So we created our system of fully designing homes before we ever swing a hammer on a project.

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

It’s great to hear your perspective on appreciation versus cash flow—it’s something I’ll keep in mind as I refine my strategy.You mentioned local meetups in Northern New Jersey—do you (or anyone here) know of any good ones closer to Somerset or Middlesex counties?