Multifamily Acquisition 201

Jack Aduwo – Founder of Boise Multifamily Investing Meetup Group, and owner of Kendu Bay Properties – returned to present the second part of Multifamily Acquisition. In January, he presented a broad overview of of multifamily acquisitions, with a focus on larger apartment complexes. This month, he presented a deeper dive into several critical processes and concepts, including:
-Due diligence
-Inspection process
-Property management
-Business entity structures
-(6) Key Performance Indicators and how to calculate them: Net Operating Income (NOI), Cap Rate, Cash-on-Cash (CoC), Internal Rate of Return (IRR), Debt Service Coverage Ration (DSCR), and Loan-to-Value (LTV)

Jack also presented a 30-day action plan to help members prepare to take down their next deal.

Following Jack’s presentation, we had a rigorous discussion about how to respond to the COVID-19 situation, including how to modify underwriting assumptions to prepare for higher economic vacancy, the need to streamline property management operations, and deferring non-essential CAPEX and maintenance to preserve cash.

Due to the COVOD-19 precautions, the televideo meeting was held on Zoom.