295: There’s Opportunity To Add Value In Midwest Tertiary Markets

In most tertiary markets in the Midwest, there’s been very little new building of multifamily housing in many years. Therefore, buildings in many of these markets have very high occupancy levels. These markets also tend to have smaller, ma and pa management, so there’s a lot of opportunity to reduce operational costs and raise rents, thereby improving Net Operating Income and creating great cash flow. Seth Teagle, Principal of The Stream Group, a vertically integrated multi-family operator, has built an impressive portfolio of C and B class properties in Central Ohio. Over the past few years, Seth has learned from mistakes on how to accurately budget for cap-ex on heavy value-add projects, an area where a lot of inexperienced operators go wrong.