⚠️$350?! That's a hellava a deal!!!⚠️
Why do we buy assets in secondary & tertiary markets?
First off, we can find true value-adds. That is, assets that have been owned by the same mom-and-pops for 10-20yrs and not been updated.
Second, substantial rent increases. This picture was a sign that was posted at a property we acquired in a small, but growing city in AR.
The comps around it supported $600-700, but this one had $350-$400 rents.
There are many flavors to this game, but don't let smaller markets scare you away from investing in these diamonds.
✔️Look at the team's experience & track record.
✔️Dig into their business plan.
✔️Ask tons of questions.
@Elijah Vo I totally agree with you. I personally bought a 12plex not long ago in a tertiary market in the Houston area and rents were being charged at an average of $500 from the previous owner. He owned the property for about 20 years. After rehabbing the first four units, we were able to rent them out for an average of $900 and we have a waiting list. We are adding massive value to this property. Can’t wait to refi in a few months. Let’s connect. Looks like we don’t live very far away