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Or maybe conversion of dilapidated motels/extended stay to MF? Imagine the per key on those would be low enough to find a reasonable spread in some markets, and maybe subsidies could bridge the gap to a decent return. Anyone know any shops doing something like this?
To D1’s point, we recently invested in a portfolio of SFR rentals in Philly. 2.1x EM, 20% IRR. All workforce type housing. Very, very confident in this investment.
Gateway cities are seeing MF rents decrease across the board because of the pandemic. Don’t see a good play in new MF development or conversion in those markets. Tier 2 city single family rental business has become relatively crowded in recent years but that’s where I would want to be right now
https://www.globest.com/2020/07/24/apartment-rents-drop-as-residents-flee-gateway-cities/?kw=Apartment%20Rents%20Drop%20as%20Residents%20Flee%20Gateway%20Cities&utm_source=email&utm_medium=enl&utm_campaign=nationalamalert&utm_content=20200724&utm_term=rem&enlcmp=nltrplt4&slreturn=20200624083343
Would shopping malls ever convert well to medical? Fewer elevators and lots of parking seems like a good starting point for the structure.
I've read that this is starting to happen.