Summary: Come behind the scenes of Kitti Sisters HQ, as we share exactly where we’re currently focusing our attention in the apartment investing space! Learn the 5 top areas we’re tracking, so you can also get higher returns and investment success!
Multifamily apartment investing has LOTS to offer investors.
We’re literally living proof of the amazing returns, crazy benefits, and true freedom that come from focusing on this asset class. You don’t need to just take our word for it though…we’ve got plenty of evidence for you.
Today we want to get specific about the multifamily space if that’s okay with you. Meaning, we want you to know exactly where we’re focusing our attention to maximize investment success! 🤩🤩
Let’s kick off the final month of Q1 by exploring 5 areas within apartment investing that we (the Kitti Sisters) are currently tracking.
You know us. We don’t hold anything back when it comes to making money through investing.
If we know something that can help take your investments to the next level, you best believe we’re going to share it. 🤟❤️
There is SO much growth on the horizon for the multifamily apartment investing sector. As we continue to position ourselves and our investors in the best possible positions, we’d love for you to come along, as well.
We’re bringing our knowledge and experience to the table – which you can use to guide your choices and navigate your own investment decisions. Ready to set yourself up to get the best possible returns?
Let’s get into it! Here are the 5 areas we’re covering today:
1️⃣ New debt
The first area we’re currently tracking is new debt. Because let’s face it…acquiring new debt for 🏢 multifamily apartment transactions has become a biiiit more difficult lately.
There are two reasons for this:
1) Interest rates are high right now, making it tricky to secure low-interest loans. 2) The ongoing debate about bridge and agency loans continues.
Let’s do just a brief recap on these two types of debt – so we’re all on the same page.
Agency loans are long-term loans backed by a government agency.
They are highly regulated and offer a guaranteed price for repayment.
Bridge loans, on the other hand, are short-term loans that allow for a much faster application and approval process, without needing a stabilized asset.
Now, for some people. Agency loans sound more enticing because they seem less risky and more stable. Butttt in the multifamily apartment investing sector, we’re not trying to get tied down to a super long-term loan that we’d be stuck in for 10-12 years.
That just doesn’t make the most sense for getting the highest returns on our investment. Plus, interest rates won’t be this high forever. Jumping into debt at a fixed price that could last many, many years would keep us from maximizing our deal potential, and potentially make us miss out on other opportunities.
So, over here at Kitti Sister HQ – we’re all about securing loans that offer short-term flexibility while still offering some control over the maximum interest rate. 👌
Securing new debt doesn’t have to be tricky, as long as you have the inside scoop on where to look. And of course, that’s where we come in!
2️⃣ Assets
Next, let’s get into the A, B, C’s of apartment investing. Don’t worry, you don’t have to be a spelling wiz for this one. 😉😉
When it comes to the type of properties we look for, we’re all about those A-class assets in A-class areas. Our reasoning isn’t just because we want the nicest properties available – but because we want lots of growth potential in our investment properties.
In B and C classes, we might run into renter issues or high property repair costs. If the location of the property is a lower class, it’s simply tougher to keep rent prices consistent at a price that will drive solid returns for us and our investors.
Your CapEx budget is what tracks property expenses for the entire year. If your investment is a B or C-class property, you could be looking at an older property that could max out your yearly expenses on just maintenance and repairs.
That’s why the Kitti Sisters look for A-class investment properties built in the 1990s (if they have classic, non-renovated units) or the 2000s, in an area of economic growth.
3️⃣ Fundamentals
Fundamentally speaking, multifamily apartment buildings make very solid investment assets – especially compared to other types of investment properties. Other assets are more affected by things like the market cycle and inflation.
As we look through our own portfolio, income, and occupancy has been consistently increasing for our apartment property investments – even during this time of high inflation.
Here’s a super specific example to show how the fundamentals of apartment buildings make them consistent, reliable investment choices:
We have this apartment property in Atlanta that just had its BEST income collection month out of the 18 months we’ve owned it. When we first took it over, the lease was at $1,100. Now, after 18 short months, the lease is up to $1,699‼️💋
That’s some serious increase in return right there.
So, even in our current time of high inflation, the fundamentals of apartment investing are trending upwards. 📈🙌
4️⃣ Cap rate
Okay, we know a cap rate may not sound like the most exciting thing ever, but don’t let that fool you. Since we started out in the apartment investing world, we have ONLY seen cap rate compression, until now.
Finally, we’re seeing a time of cap rate expansion, which is greeeeat news for buyers! 🤓🤓 By purchasing properties right now, during a cap rate expansion, we’re setting ourselves up to look real good in a few short years. That’s when we’ll probably get back to cap rate compression.
In simple terms…
Now is an incredibly good time to purchase apartment investment properties. We’ll be able to sell these properties in a few years, and make BANK on those sweet returns. 👍
5️⃣ Opportunity
If you couldn’t tell already, we are VERY excited about the future of multifamily apartment investing. 🥳🥳
The opportunities for investors to buy discounted properties that can produce high returns in just a few short years get us amped like nothing else.
Here’s what we’re looking at right now:
- More apartment discounts in the next 6-9 months.
- Much less competition for investors.
- Lots of flexibility for negotiating buyer-friendly purchasing terms.
All three of these point towards tons of high-income return potential for investors who want to get started in apartment investing.
In the current supply vs. demand curve we’re seeing now, property owners are coming out on top. Pair that with the fact that renting is becoming more and more popular, and you’re looking at some good stuff coming up for multifamily apartment investors.
Trust us.
We are reaping the benefits of this incredible investment asset, and we wouldn’t be sharing it and hyping it up if we weren’t.
Here’s the bottom line ⏬
👉 Based on our knowledge, experience, and extensive market research, we believe that multifamily apartments will remain stable and lucrative for the foreseeable future.
Speaking of opportunities…
We know there are some BIG ones out there, waiting for you in the multifamily apartment investment space. Will you reach out and grab them?
Getting into the action now means you’re jumping into the best investment asset class of 2023 in terms of stability, growth, and flexibility. We know, because we’re currently helping tons of people, just like you, create the life they truly deserve. ✨
The Kitti Freedom Club is our community of investors who want ALL of the insider info, access, and support. Basically, it’s the place to be for anyone looking to find the best possible investment returns.
Come see for yourself!
For better returns and a better future, become a part of our investment family today by joining the Kitti Freedom Club!
GET ME ON THE KITTI FREEDOM CLUB
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