I am seeing a ton of shit OMs from brokers labeling everything value-add for multifamily. This is nothing new but who is the potential buyer pool for these shit class B & C assets? To my main question, is it realistic to expect rents can be doubled at a property in 18 to 124 months at a 50 to 150 unit building?
For those with experience acquiring value-add multifamily, how challenging has it been once you implement the value-add strategy of washer & dryer, paint, renovation, etc to double rents at a property?
Brokers are using class A comps for class C shit value-add deals in an inferior location. The only way to make these deals work is to double rents and assume "slight" increase to taxes and insurance which will jump by 30-50% if you are doubling rents. Folks are definitely getting over their head to acquire deals in my market.
Is this the only way to win deals now? Thoughts on rents for value-add?
Thanks in advance!!