Would you spend $10000 to make $40 a month I did once and I learned the hard way
We had a 140 unit property near Downtown Houston We tested a small value-add play renovated four units spent 8 to 10 grand per unit and waited to see if rents would respond They didn’t The bump was minimal 20 maybe 30 bucks a unit That’s when I realized the numbers don’t lie
This is the part most investors miss Value-add only works when the math works Too many people throw money at renovations without asking the right questions Will this actually cash flow Does this increase NOI Or am I just burning capital to feel busy
So I made the call We didn’t keep renovating We sold the asset I was actually on the email list when the syndicator tied it up Funny how that works But the truth is I had the business plan I knew the outcome I knew it was time to move on
If you’re not checking the numbers before the paint goes on you’re already behind
Comment #Multi to get my Multi-Family Deal Due Diligence Checklist and avoid this kind of mistake
#multifamilyinvesting #cashflowfirst #valueaddsmart
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