In today’s episode, Gary and Kyle talk about the 42-unit midtown asset they recently sold in Tuscon. We hear about how they took the property from barely surviving to thriving, and the upgrades they chose to make. Gary and Kyle do not only look for rehab opportunities; they also look for chances to upgrade operations. We find out what surprised them when they tweaked the building and the rationale behind them pivoting and selling the property. As the conversation wraps up, we learn about some of the difficulties they were faced with when trying to sell the property and the value in coming back to your business plan time and again. Tune in to hear it all!

Key Points From This Episode:

  • Kyle and Gary’s original business plan and why they look for operational inefficiencies.
  • How Kyle and Gary addressed the safety concerns on the property.
  • The most surprising thing that happened after all of the upgrades and rent raises.
  • If you are making a place better to live in, residents won’t mind paying more.
  • The reason behind why Kyle and Gary decided to pivot.
  • Hear about some of the obstacles that came with trying to sell the property.
  • Why it is important to continually reassess your business plan.

Tweetables:

“Operational efficiencies create more value than just an interior rehab.” — Kyle Mitchell [0:01:26]

“The deal is never done until you actually close. You got to run it all the way to the very end.” — Gary Lipsky [0:10:40]

“It’s important to always reassess your business plan year over year.” — Kyle Mitchell [0:12:00]

Links Mentioned in Today’s Episode:

Asset Management Mastery Facebook Group

Passive Income Through Multifamily Real Estate Facebook Group 

Asset Management Mastery

Kyle Mitchell on LinkedIn

Gary Lipsky on LinkedIn

Gary Lipsky on TwitterGarzella GroupVirtual Asset Management Summit 2021