While Dallas cap rates remain compressed, the trade-off is improved tenant stability, lower operating expenses, and predictable maintenance due to the 1-2-10 builder warranty and energy-efficient systems like spray foam insulation. 

The ability to move fast and lock in the opportunity is what made this deal profitable.What was the outcome?

Every improvement was designed to bring the property up to market standards, even though the rising costs and shifting comps ultimately affected the final margin.What was the outcome?

You paid extra for less cash flow, even if the long-term CapEx benefits were obvious.But when new construction trades at a discount — and comes with a 10-year roof, new mechanicals, energy efficiency, and a builder warranty — the math changes.Lower maintenance, lower vacancy, and predictable CapEx are now being offered at resale pricing or better.That is a different equation than anything we saw in 2015–2023.What I’m seeing in Reno, NV• In 2021, new builds typically sold 12–15% above resales• Today, builders are offering $15K–$40K in incentives plus below-market financing• Several new homes now underwrite better than 1980s resales, even before factoring depreciationIf you only pull comps from the MLS, you won’t see these concessions because they aren’t reflected in list prices.

But the paper assumes the best possible outcome, what happens when it is not the best possible outcome (almost all the time it is not)? 

Each upgrade was strategically selected to match Nashville’s competitive buyer expectations, maximizing the property's final market value.What was the outcome?

It was a true trade-off as the Logan area is more limited in STRs and new builds so ADRs are higher and likely to stay there compared to RRG where the market is headed towards being flooded and there's the potential of ADRs going down like in Gatlinburg/Pigeon Forge area. 

Learn as much as possible about trades or skills (can help save & make a lot of $).

• “What would a perfect outcome look like for you?” 

completely gutted and redone What was the outcome?