Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

The math that made me 1.5 million #multifamilyrealestateinvesting

28 Nov 2024 · 1 min

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Christian Osgood bought a Section 8 rental in Stephenville, Texas generating $90,000 annually. Using a 6% cap rate, he valued it at $1.5 million within two months of purchase. The town's mix of college students, families, and farmers made it work.

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I invest in Stephenville, Texas. It's a dairy town that has a booming college. So you have a ton of young kids, you have a ton of families, and they're farming community families, traditionally, you know, all-American grass-fed beef families and football and rodeo. Nice. In a town like that, the math gets fun. You have that $7,500 per month that you add instantly through Section 8. Multiply that by 12, $90,000 a year on one transaction. In a market that trades on a 6 cap. So you divide that by 0.06. That's not bad. So we take $90,000 divided by 0.06. I'll run out my calculator here. You make $1.5 million within 2 months of buying that property.