Strategic planning is crucially important when determining the best value-add proposition. Ron Cadman has spent more than 30 years discovering undervalued properties and successfully transforming them into high-value assets.
When undertaking a value-add multifamily investment, location selection is one of the most important factors in ensuring a solid ROI. Here are the mission-critical issues.
Potential for population growth. Regions that experience an influx of households can expect substantial increases in real estate value. This may affect the ease with which new investors can acquire property, but could attract high-value buyers if the investors anticipate liquidating their asset in the short-term.
- Job availability. Employment opportunities across the financial spectrum will assure bustling economic activity within the region, attracting a robust population of reliable renters.
- Property owner and landlord-friendly laws. Location in an owner-friendly city will ensure minimal difficulties with problematic tenants, and facilitate ease with periodic rent increases.
- Population age. The ideal population will be of an early-to-mid career working age.
- Employment diversity. Cities that are not wholly dependent upon a single industry are preferable, as they are more likely to remain stable during a fluctuating economy.
Investor location. New investors will have to monitor any renovations or restorations to their properties during development, and may also have to address tenant issues after the rental units are filled. Selecting a location that can be reached quickly and reliably will be optimal.
Ron Cadman: Delivering Successful Real Estate Investment Strategies for More than 30 Years
As a co-founder of multiple international real estate investment firms, Ron Cadman has executed thousands of profitable asset maximization strategies in diverse economic markets. His investment funds have included hundreds of single and multi-family residential properties throughout the United States and Canada.