Asset Class

• B-class and strong C+ multifamily

• Workforce housing with stable or improving fundamentals

Vintage

• 1985–2005 preferred

• Select 2006–2012 if the basis and condition support

• Concrete slab construction is strongly preferred

Unit Count

• 50–200 units

• Ideal zone: 70–140 units (highest priority)

Occupancy

• 85–95% physical occupancy at acquisition

• Will consider 80–85% only if vacancy is operational (turns, poor management, fixable delinquency)

• Market vacancy must be ≤ 10%

• Going-In Cap Rate: 6.25%–7.00%+ (submarket dependent)

• Cash-on-Cash: 8–10% Year 1, 11–13% stabilized

• DSCR:

  • Minimum at close: 1.30x (hard stop)

  • Target stabilized: 1.40x+

  • Downside stress test: ≥ 1.15x

• Light-to-moderate renovations: $6k–$12k per unit

• Target rent premiums: $100–$200/month

• Interior focus: flooring, fixtures, appliances, paint, hardware

• Revenue adds: RUBS, pet rent, parking, laundry, internet

• No major structural or system overhauls

Core / Infill:

• Dallas (select nodes)

• Fort Worth (select nodes)

• Arlington

• Irving / Las Colinas

• Grand Prairie

Growth Submarkets:

• Frisco / Plano / Allen

• McKinney

• Denton

• North Fort Worth / Alliance Corridor

• Mansfield / Midlothian

• Richardson (select corridors)

• D-class or high-crime locations

• Properties with chronic collections issues (<90%)

• Heavy voucher concentration (>25–30%)

• Structural vacancy or declining submarkets

• High-rise, podium, mixed-use, or luxury Class A

• Assets requiring >$12k/unit or major capex

• Deals that rely on aggressive rent growth assumptions