In my first 18 months  my results were mediocre, at best.Then I caught one of the greatest “breaks” of my business life.  

#Truth is many people do partnerships like this that do not meet the howey test, and nothing happens until the deal goes bad, then when it does it really does not matter if you met it or not, as once a lawsuit is filed all hell breaks lose.Not advice or recommending to break laws - just sharing what I have seen others operate.

@Jonathan LeungIf you search The Investors Guide To Memphis Real Estate wherever you listen to podcasts,  YouTube or Facebook (All over Tiktok and IG as well) you will be able to see our Memphis TN Investment Zip Code break down where I talk price points, rental ranges and sales figures form year to year.

Huge “instant value.”Except… I don’t know a single stabilized student housing operator running sub-30% OpEx without cutting corners so aggressively that the NOI becomes fiction.Here’s what I’m seeing in the real numbers:Where the OM breaks realityManagement fees appear included,but once you properly account for student housing staffing — 28% isn’t sustainable.CapEx reserves?

No need to break the bankIn terms of art, it does not have to be expensive but needs to fit the size of the wall.

You will start to dread days where you have nobody on the job.You should also have a designer (can be you, your wife etc), but money is made with designs not by replacing pipes.For your first flip: break even is a success.

The best way to break in is usually through local investor meetups, REIAs, and BiggerPockets events; that’s where most property managers and active investors actually source new vendors.

Then the city reassesses, taxes jump, and the cash-flowing deal turns into break-even or negative.

It may also be an insider type deal from a portfolio owner selling to get a tax break!  

But factor in cap ex costs before you buy and have savings to cover things that will break.