Which multifamily real estate assets give the best return after you add value to them? We reveal the answer in this video after conducting a two year study of Class A, B, and C assets in Florida.
I conducted a 2 year analysis of every asset class within multifamily, including Class A, B+, B, B-, C+, C, and C- assets across the entire northern half of Florida. I analyzed what the dollar per unit difference was between each asset class in order to determine which jump in asset class produced the largest value increase.
To go from a C- to a C, or a C to a C+, or a C+ to a B- all had roughly $15,000-20,000 per unit jumps. To go from a B- to a B is around $35,000. But to go from a B to a B+ or from a B+ to an A offers a $40,000+ jump in value! Those B and A class deals are more rare however so don't get frustrated only trying to find those assets. You should pursue all deals that meet your return objectives but pay particular attention to those assets. If you'd like to understand the make-up or DNA of B, B+, and A class assets ($/unit, age, rents, etc.) for the northern half of Florida, please contact me.