How we underwrite
Every deal is held to the same standards before an offer is made.
Priced on current income
Offers are based on the income a property produces today, so we aren't paying the seller for value we intend to create after closing.
Upside proven by the market
Rent increases and renovation premiums are only counted when comparable properties nearby already support them.
Expenses underwritten at our cost
Taxes, insurance and management are underwritten at what they will cost under new ownership, not what the seller has been paying.
Stress-tested for the downside
Each deal is modeled under weaker market conditions before an offer is made, financing included. Terms have to hold up if rents flatten or expenses run above plan.
What we look for
We target Class B and C apartment buildings with room to improve under new ownership. Most often that's a property where rents have fallen behind comparable buildings nearby, or where management has slipped, such as an out-of-state owner or a long-time landlord who is ready to step away.
Renovations only become part of the plan when nearby properties show renters will pay for them. The same test applies to added income like utility billbacks.
When a property is sent to us, we review the rent roll and trailing 12-month financials and give a clear answer on whether it fits. If it doesn't, we'll explain where the numbers would need to be.
Send a rent roll and trailing 12 to dan@ridgeline-realestate.com.
Acquisition Criteria