Updated almost 6 years ago on . Most recent reply
WHAT TARGET COC RETURN FOR YEAR 1?
Hey BP,
I have a question for anyone experienced in value add deals, specifically large apartment complexes. Being that the rents are below market value, and the loss to lease is high for a lot of value add deals, what are you guys targeting for your Cash on Cash return for Year 1?
Are you guys basing your offer on achieving an 8% cash on cash return (or whatever your goal is) from Year 1? Or are you looking to achieve that post-renovation? I am guessing the answer is post-renovation, but I want to be sure.
Any advice, or feedback is appreciated. Thank you!
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Greg Dickerson
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA