Our 2 Year Mark: Key Learnings

We are approaching our 2 year anniversary on a Class C Value Add.

It hasn’t been easy.

As you can see from the red line, occupancy has been a challenge.

We are now in a much stronger position with occupancy at 97-98%. We will stabilize occupancy over 95% on our 2 yr anniversary.

In an after action assessment on our performance, some items are obvious and some are counter-intuitive.

Key Learnings (reinforced & new):
๐ŸŽ’ Bank Draws are crucial to success. From Oct of Year 1 to Sep Year 2 we battled with the bank over bank draw payments and timing. It dramatically impacted our timeline and delivery of units to market.
๐ŸŽ’ Fire faster. We changed PM company in Month 10. The change took 60 days to implement so we should have made the decision in Dec or Jan.
๐ŸŽ’ We have a massive delivery of rehabbed units in Feb/March this year. Occupancy climbed.
๐ŸŽ’ Seasonality does exist over Nov-Jan
๐ŸŽ’ Avg Unit Rent is not always correlated to property occupancy. You CAN raise rents even when vacancy is present. We started at $~680 and should finish Year 2 at ~$860 +$190/Unit/Month.
๐ŸŽ’ Mark to Market is a metric that must ALWAYS be forebrain. We grew it by stewarding resources where our largest unit rent gains were achieved with the lowest rehab expense. It made a huge difference.