We kept the on-site manager and we will optimize financials during our hold period.

Hello BP community, Currently a Syndication and Private Equity enthusiast trying to evaluate MF apartment deals not just in terms of IRR, CoC etc. but also knowing whether the deal works from a capital stack perspective or knowing the optimal balance of the capital structure. 

I'm also interested to hear peoples' opinions.I think the key is market-dependent and worth researching the local demand and competition for different bedroom / occupancy counts to zero in on the optimal local opportunity.

We have an aggressive lease purchase program and acquisition assets, which allows us to hold properties until the optimal market conditions are met.

I figure when the market shifts and financing is not as affordable for me I can focus on optimization vs acquisitions.

REI is a huge probability density function with infinite possible outcomes, some more probable than others, and you need to be able to pursue strategies that could work for multiple positive outcomes.You will want to optimize everything to the nth degree when in reality you are operating in a highly constrained sub-optimization environmentYou will tend to develop elaborate models, and believe what they tell you with certainty when in reality many things are not known or knowable because there are just too many variables at playRE is a people business.

You are best to optimize your Schedule E for taxes to optimize your DTI from your existing rentals as you scale your portfolio.

There you are in your Panama Jack hat, smoking your puffy with your wine, the light of youth and optimism alive in your eyes.

Like any math problem you can optimize for 1 variable.What is the point of maximizing the cash flow?

My family has gone from disbelief to cautious optimism to cheerleaders to co-investors.I have friends that I just don't talk about it with though.