I have 2 deals that are being sold in the next 3 months. Both were purchased in 2017. One is what every investor wants: Class B, brick/hardi exterior, pitched roof and the other one is not the prettiest property: flat roof, mostly brick, and limited amenities.
The pretty one has done 5-6% CoC returns and after being sold will return about 1.6X of the initial investment. The “ugly” one has been doing about 10% CoC and will be sold for close to a 2x of the initial investment.
Ugly property but beautiful returns.
What do you care more about: pretty property or cash flow? Obviously, there are a lot of different factors of why these properties had different returns but sometimes you must look beyond the appearance of a property.
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