😵 Scale matters - Play the Right Game

Author

Steven Speck
October 30, 2024

😵 Scale matters

Hey-

Are you even playing the right game?

The value of a $25 rent increase:

On 1 Single Family Rental

= $25/mo

→ $300/yr

↳ increased value $0

On one 60-unit apartment complex

= $1,500/mo

→ $18,000/yr

↳ increased value $257,000+

Scale matters.

Can an S&P index fund do that?

NOPE. 

So are you playing the right game?

From this week:

  • In case you wondered where prices and rent will go from here… up ↑

  • Interest rates have not yet moved down 👀.

  • Rents are still rising within our portfolio - some increase in late rent noticed.

  • We have seen an increase in multifamily properties coming to market across our desk BUT not at very reduced pricing (Midwest). Yes, there is still this looming debt problem, see chart below, however nothing widespread has occurred so far.

If you find this type of stuff helpful, don’t keep it to yourself, share it so others can learn too! -Heck we’ll even buy you coffee for sharing

Questions always welcome!

Nate & Steven
Rust Belt Capital, LLC

Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.