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Redeveloping Affordable Housing

Key Points

• Multifamily investing does not have to be a zero-sum game
• Redeveloping the current affordable housing supply addresses critical community needs and can also deliver solid returns to investors
• Targeted renovations incorporating energy-efficient strategies improve living conditions while increasing property value and lowering tenants utility bills

Affordable housing is often an overlooked opportunity; many people mistakenly assume that affordable and profitable are mutually exclusive concepts. With the right redevelopment plan, affordable housing investing can result in both greatly improved living experiences for residents and compelling cash flow for investors.

Affordable housing complexes often have two types of owners:

• “Mom & Pop” owners who self-manage with little concern for the income approach used by institutional multifamily professionals
• Absent, oftentimes out-of-state, owners who mainly view the property as a flippable asset.

Both types of owners can leave opportunities for investors to capitalize on the true value of their asset. Rents could be below-market, maintenance could be markedly deferred, and professional property management could add valuable services to enhance the resident experience.

We take a different approach to property ownership, implementing a value-add redevelopment plan that is mutually beneficial to tenants and investors alike.

By investing in interior/exterior renovations and implementing effective and efficient property management, we transform neglected substandard housing into decent, affordable apartment communities with high property value and increased revenue.

When we purchase a property we redevelop it from the inside out:

Before >>> After

Key Renovations: Updated vanity, new flooring, fresh paint, tub and shower wall replacement

Energy-reduction additions: Low-Flow Toilet, Low-Flow Shower Head,

Updated Lighting Fixtures

Before >>> After

Key Renovations: Upgraded flooring, fresh paint, backsplash, new countertops

Energy-reduction additions: Low-Flow Faucet, Vent Hood, Dishwasher Replacement, Upgraded Lighting Fixtures, Incorporation of Natural Light

Upgrading flooring, cabinetry, and fixtures improve the home drastically with a moderate budget. These interior renovations allow us to bring rents to market prices while still staying within an affordable range.

We also focus on:

• Replacing out-of-date appliances
• Replacing HVAC systems
• Repairing existing water leaks

These improvements decrease energy consumption, lower utility costs, and increase overall efficiency.

The key to redeveloping affordable housing is identifying cost-effective solutions to long-standing deferred maintenance.

Our hands-on ownership structure, effective property management team, and calculated renovation plans enable us to increase revenues and property values while creating communities residents are proud to call home. Through this strategic redevelopment process, communities can stay affordable, while also becoming profitable assets.

-The Affordable Upstate Team 

The information contained in this post is provided to you solely for informational purposes only, and is not to be shared, distributed, or otherwise used for any other purpose without direct reference to Affordable Upstate or link back to this post. This post is provided for education and discussion purposes only and does not constitute an offering. Opinions and projections included in this newsletter are provided as of the date of publication, may prove to be inaccurate, and are subject to change without notice. Prospective investors should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Affordable Upstate nor any other investment. An offering may be made only by delivery of a confidential offering memorandum to appropriate investors. Past performance is no guarantee of future results. Additional information about Affordable Upstate and its performance is available upon request.