Just Another Value Add

Over a decade in commercial real estate. Mostly in small multi-family. X's and Tweets are not advice.

[Just Another Value Add @ValueAddGuy]

@bprintco Impressive. Does it make sense to just get a few of the remote control ones instead of more full size?

[Just Another Value Add @ValueAddGuy]

We’ve never seen higher retention on our 1 bedroom units

We’ve also never seen so many 1 bedroom units sitting vacant for so long

[Just Another Value Add @ValueAddGuy]

Update on spring leasing in the midwest

Getting strong traffic on 1-3 bedrooms. Rents are pushing, but not screaming up

Retention up vs. last year

Short term and midterm rentals are almost as strong as the covid boom

Not seeing many concessions out there except on 5+ bedroom

[Just Another Value Add @ValueAddGuy]

Recent closing on a building I was paying off a construction loan on from a local bank:

50% LTV, 3 year 7.25%
20 year amortization, first 2 years interest only with a 1% prepay

[Just Another Value Add @ValueAddGuy]

Update here on insurance. 3 different quotes I received.
$9,000/yr
$17,000/yr
$24,000/yr

[Just Another Value Add @ValueAddGuy]

The insurance quotes I'm seeing coming in for a late 1800's apartment building in the midwest are crazy high

[Just Another Value Add @ValueAddGuy]

The insurance quotes I'm seeing coming in for a late 1800's apartment building in the midwest are crazy high

[Just Another Value Add @ValueAddGuy]

@ChrisRamsey60 So you don't add a man door to all of your units?

[Just Another Value Add @ValueAddGuy]

6 days apart I priced a loan with a private lender for a cash out refi on a 3 unit.

30 year fixed. 75% LTV
March 27: 7.63%
April 4: 7.31%

30 year, 10 years interest only. 70% LTV
March 27: 7.39%
April 4: 6.92%

[Just Another Value Add @ValueAddGuy]

Powell’ revived “transitory” just in time.

If he sees tariff driven inflation as short lived, he’s got the cover to cut rates in May, or even earlier.

[Nick Timiraos @NickTimiraos]

Powell at key inflection points

June 2019: Act as appropriate to sustain the expansion
August 2024: Further weakness in labor market is not desirable
April 2025: Our obligation is to keep longer-term inflation expectations well anchored

[Just Another Value Add @ValueAddGuy]

I offered the tenants of a brick 6 unit all two year leases extensions in early March. Their current leases go through August or September 2025.

None of them took me up on it. But every single one of them signed through September 2026.

[Just Another Value Add @ValueAddGuy]

It took me longer than I'd like to admit to get this through my head:

Just because a building is in a 'good location' it doesn't mean it will attract the type of tenants you think it will.

[Just Another Value Add @ValueAddGuy]

Something interesting going on with Furnished Finder. The amount of listings are up nearly 4x compared to last year.

We have seen steady demand still, but it's obvious that some of the Airbnb listings are starting to convert over.

[Just Another Value Add @ValueAddGuy]

@drewbreneman That's awesome. When I look back at old pictures and projects like this I always wish I took more pictures

[Just Another Value Add @ValueAddGuy]

@drewbreneman Guide

[Just Another Value Add @ValueAddGuy]

Talked to a local bank with a small footprint today. 5 year loan with a 20yr amortization at 7.15%

2-3 years of interest only and no prepayment penalty. Small multi

[Just Another Value Add @ValueAddGuy]

I have 2 small multi properties under contract for sale. Both are 1031 exchange buyers

[Just Another Value Add @ValueAddGuy]

Pre 2020 there was a lot of demand in a college town we invest in for 5,6,7 bedroom houses. Since then they have been receiving very little to no applications for rent.

[Just Another Value Add @ValueAddGuy]

@JohnJBlatchford Looks great. Do you seal the brick or do anything with it?

[Just Another Value Add @ValueAddGuy]

@DallasAptGP Nice post. Any favorite shower heads you use? Same in all units?

[Just Another Value Add @ValueAddGuy]

@torysheffer Solid numbers. Our similar units are turning closer to $18,000-$20,000 all in, but with granite tops.

[Just Another Value Add @ValueAddGuy]

@torysheffer Nice turn. What was the labor on that?