I am specifically interested in SFR value add opportunities, as well as, 2-4 unit properties.

Personal financing How did you add value to the deal?

If you haven't increased rents in a long time and that is why you are so far below market value, increase them slowly over time unless you have a vacancy. 

We bought in a developing area with a lot of new construction and commercial construction to ensure maximized appreciation, both in rent and in home value.

The IRS loves this because it is an arms-length transaction so there is no way for the mutual fund buyer to somehow manipulate the value of the mutual fund.2) A person creates a company inside his SDIRA.

Saved $1,000 per month in monthly housing costs.Step 5: Saved up the cash flow money and bonus money from their work.Step 6: Bought another condo $250,000 in a HCOL city that cash flows with 5.5% rate and 25% downStep 7: Raised rents on all 3 properties to market rate equal to $5,800.Time to complete: 9 years.Cash flow went from $300 to $1500 per month.Properties valued at approximately $925,000.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

You can pull comps, have a realtor do that or talk to an appraiser to give you the "value" and the difference between that and what your going to pay is your paper equity.

Bridge debt is used to “bridge” a property from its current state to an improved state and by virtue of that purpose, the maturities on these loans are short, typically 3 years with two possible one-year extensions (if the covenants are being met).The reason this distinction is important is that if rates rise, property values tend to fall.  

Cash How did you add value to the deal?