I’m trying to get a better understanding of the unlevered IRR hurdles SFR / BTR investors have for value-add improvements.By "value-add improvements" I’m referring to upgrades made to a property that increase rent or purchase value, often including kitchen remodels, bathroom updates, solar and other energy efficiency improvements, fresh paint, a new garage door, finishing a basement, adding a deck, and updating flooring, to name a few.I’ve been hearing a lot of different reactions to this question the last few months.

What are some of the challenges an owner would have accepting this type of deal.  

Thanks for going through this entire process for Alexandria, William.

However, this is not a nice motorhome. 

I spent considerable time pulling comps and estimating fair market value, but given the unique features of this property, it was challenging to reach a confident valuation.

This is the main difference in commercial vs residential.

@Gio KattanWho had you create this crazy long winded setup in the first place of entity after entity?

Reality is many bad events/outcomes was done with risk and/or stupidity including poor research.

I appreciate you sharing this information with me , thank you !

I’m also wondering how to decide between investing locally versus exploring other areas.Any advice or resources would be greatly appreciated!