Hi.. I'm currently evaluating value add MF deals in Texas
based on what I can glean from my limited experience, sources of upside include:
1. class c property with below market rents - potential to upgrade units and improve efficiencies to get to market rents
2. Bill back utilities, pest control, water etc.
3. background checks, credit checks on lease renewals if not done by previous owner to reduce economic loss.
Would you agree or are there any others you would add?
You are definitely tracking correctly. Another possibility might be adding additional sources of income - renting out the common space/room in the office if you have one, to the tenants for birthday parties etc, vending machines, coin operated laundry, pet fees, pet non refundable pet deposits. You can also check with cell phone carriers to see if they think your buildings might be a good area to put up a cell tower and rent the space from you (though I believe that space is mostly for high rises?)
Hope that helps a bit,
you just reminded me that concessions from cable is another area.
coin operated machines.. that's something I imagine you would contract out rather than deal with the management/maintenance hassles.
RE: coin op machines; I don't know anyone who's had a good experience with coin op leasing companies and trying to get out a contract with one that you're not satisfied with is harder than regrowing a limb. I would purchase card-op machines, not coin-op instead.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!