Value-Add Deals Gaining Steam

Great article in National Real Estate Investor that highlights some of our thinking: there are bigger returns and lower risks in buying value-add multifamily properties - particularly those considered class-B and class-C. Our last post pointed out that these properties are considered to be "recession-proof" due to favorable demographics that have spurred high demand (more people need affordable housing), low supply (it just doesn't pay to develop these), and less sensitivity amongst the tenant base to employment and income (many tenants receive some form of government assistance to help maintain their standard of living). This article reinforces all of that: Yield-driven multifamily investo

"Recession Proof" Assets

Who wouldn't want to add some "recession proof" assets to their investment portfolio? Especially income-producing assets that are also a fantastic hedge against longer term rising inflation - but which also benefit from the low interest rate environment we are currently enjoying! Class B/C apartment buildings: sometimes called "affordable living units" or "workforce housing" or "working class buildings" - good old townhouse style garden apartments - are almost impossible to resist. Almost no new inventory (check), rising demand due to demographic changes (check), long term tenants with low turnover (check), a tenant base that includes many with incomes and assistance that are tied to COLA

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    Prudent Growth Partners, LLC  (2017)    1829 E. Franklin St, Suite 800-F, Chapel Hill, NC 27514  (919) 590-4119