Chris Hermance

I'm the founder of Hermance Capital, a multifamily acquisition firm focused on value-add workforce housing across ten secondary markets in the Midwest and Southeast: Augusta, Chattanooga, Columbus, Des Moines, Greenville, Huntsville, Indianapolis, Kansas City, Omaha and Wilmington. My criteria are narrow on purpose: 20-50 units, B and C class, 1985-2010 vintage, $2M-$8M. A deal has to clear $100 per door per month, a 1.15 DSCR at entry and 1.35 stabilized, and a 6-8 percent cash-on-cash return. Holds run five, seven, or ten years depending on what the underwriting supports. I'm early, and at this stage discipline counts for more than volume. The last deal I underwrote in full, I walked away from. The recorded LURA contradicted the offering memorandum's decontrol claim, and a forced tax reset put stabilized NOI about 20 percent under the broker's number. That one was a no, and it was the right call. If you broker multifamily in any of those markets, send me anything in my box and you'll get a straight read inside 48 hours, including the no.