Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Walking my next apartment deal!

11 Aug 2020 · 3 min

Watch on YouTube

3:10

In this short vlog, Cody walks an off‑market 22‑unit apartment building in Central Washington and shares the three core criteria he uses to evaluate apartment deals. He begins by citing Grant Cardone’s book Be Obsessed or Be Average as the mindset catalyst that drives his real‑estate pursuits. He then explains his evaluation framework: (1) location and the target tenant profile – he must be able to identify who will rent the units; (2) Net Operating Income (NOI) – a breakdown of gross rental income minus taxes, insurance, management, maintenance, utilities, and other operating expenses, which determines cash flow after debt service; and (3) his subjective “feel” for the property, emphasizing a preference for B‑ or C‑class assets over D‑class “slumlord” properties. Cody notes the building was constructed in 2017, that he walked 15 properties that day, and that he is contacting owners, framing deal acquisition as a “contact sport.” He promises future videos with deeper number‑crunching and invites viewer comments.

Chapters

Hey guys, it's Cody. Sitting in the office today, and I just wanted to share a short video that I took this past weekend when I was walking an off-market 22-unit apartment deal over in Central Washington. Before I share that with you guys, I want to show you guys a book that really inspired me to get into the real estate game and become fully immersed in it. Be Obsessed or Be Average by Grant Cardone. This book literally changed my mindset on all things real estate. And it's not just for real estate. For those who are younger and getting into this business, the main idea is that you want to be obsessed with your passion. Be fully invested into that space no matter what. Do whatever it takes to get known by everyone in that space. And I've taken what I've learned from that book and implemented it into my life, and it has been life-changing. It's allowed me to do some amazing things. And with that, if you like what you see, please do let me know your thoughts in the comment section down below. I'd love to hear what you're thinking as I build this journey and film it on YouTube. With that, enjoy the video. Hey YouTube, it's Cody.
Just wanted to create a little video. I'm actively walking a 22-unit off-market apartment building over in Central Washington, and I wanted to create this video just to share a little bit about what I look for when I'm looking at apartment deals. This one is off market. Seller built this just a few years back and been talking with him. But the top 3 things that I need to look at when I'm looking at apartments is number 1, where's the location? There's a question I always ask, who's going to be my tenant? Who's my standard tenant? And if I can't answer that question, I don't buy the deal. Also really important, something you need to know if you're looking at apartments, what is NOI? Net operating income. So, you know, your NOI, net operating income, is the money that you have to pay yourself and pay your mortgage. This means that after taxes, insurance, management, maintenance, utilities, anything that you have to pay to keep that property running when it's occupied, you have to subtract that from your gross income, your gross rental income, and you get what's called NOI. That's how we can project our numbers. I'm going to be building out a video in the future to share exactly how I analyze deals, how I break down the numbers, how I break down the returns. But for now, we're looking at, okay, what's the location? Who's my tenant? What's the NOI? And then thirdly, how do I feel about the deal? When I'm looking at this, it's a pretty beautiful deal. This was built back in 2017, and so I feel pretty comfortable with this. I'm not being a slumlord. I do not like to buy that D-class property. If we're in C or B, that's where we make a lot of the money without breaking the bank. And so I just want to create this short video, share a little bit about that. But NOI, we're looking at location, who's our typical tenant, and then it's just a numbers game of looking at hundreds of these deals. I've walked 15 of these today, and I'm in contact with all of the owners. And now it's just about making contact. It's a contact sport. And put one of these together. Anyways, see you guys next time.