Class B & C value-add. 50–300 units. Indianapolis, Columbus & Seattle.
The acquisition criteria we'll deploy capital against in 2026. Three markets: Indianapolis (#1) and Columbus (#2) for day-1 cash flow and forced equity through value-add, plus the Seattle suburban ring (#3) — underwritten differently by design, for appreciation and a rent floor the Midwest cannot match.
Acquisition criteria, on one page.
Class B vintage 1985–2005. Class C vintage 1970–1990. Value-add stock with clear operational upside.
Mid- to large-multifamily where active, professional management creates durable NOI advantage.
Below replacement cost. Midwest underwritten for positive day-1 cash flow; Seattle underwritten for appreciation at a higher basis.
In-place going-in cap rates. We do not chase yield on stabilized assumptions.
Interior renovations, ratio utility billing implementation, amenity and operations upgrades.
Three markets. Programmatic. Seattle suburban ring only — Renton, Kent, Everett — never the urban core.
Why Indianapolis, Columbus and Seattle.
Of the markets we researched, Indianapolis and Columbus delivered the optimal balance of day-1 cash flow, forced equity through value-add, and landlord protections for an active operator deploying at scale. Seattle earns its place on a different mandate: appreciation and a rent floor the Midwest cannot match, underwritten in the suburban ring only.
Indianapolis, IN
- #1 Ranked. Spring 2026 Arbor/Chandan Opportunity Matrix — top of all 50 major US metros.
- Supply cliff. 65% drop in new construction YoY — existing owners regain pricing power.
- $8B+ economy. $4.3B IU Health hospital plus $3.7B+ additional projects driving sustained workforce demand.
- Landlord laws. No rent control, fast eviction (2–3 weeks), no preemption statewide.
- Cash flow. Class C caps 7–8.5%, 1BR avg $950–$1,247 — strong day-1 returns at our target unit.
Columbus, OH
- Buy the softness. Vacancy sits at a 20-year high after four years of oversupply. We buy into today's weakness and own the recovery.
- Supply pipeline collapse. Construction starts down 75% for 2026 — the oversupply that created the softness is ending.
- Zero Intel benefit underwritten. Intel's fabs are pushed to 2030–31. Our thesis does not depend on Intel; we credit none of it in underwriting.
- Suburb ring. Canal Winchester, Grove City, Gahanna: 94%+ occupancy with a minimal new supply pipeline.
- Landlord laws. Ohio: 3-day eviction notice for non-payment, no rent control statewide.
- Scale ready. 50–300 unit 1990s–2005 stock abundant in suburbs — fits a programmatic renovation model.
Seattle, WA
- Suburban ring only. Renton, Kent, Everett. Never the urban core — by design.
- Appreciation-weighted. Appreciation and a rent floor the Midwest cannot match. 7–10 year hold.
- Workforce depth. 4M+ workforce at 3.5% unemployment supporting the rent floor.
- Supply pipeline down 11%. Fewer deliveries into a structurally supply-constrained metro.
- Different basis, different cap. $200k–$260k per unit at a 5.0–6.25% cap rate.
- HB 1217 underwritten. Washington's rent cap (9.683% for 2026, 90-day notice) is modeled into every Seattle underwrite.
Others eliminated: Charlotte / Raleigh (higher acquisition cost, thinner day-1 cash flow) · Kansas City (slower appreciation) · Chicago (Cook Co. taxes plus regulatory complexity at scale).
Indianapolis, IN — the operator's market.
Spring 2026 Arbor/Chandan #1 ranked market. Score: 43/50. Active operator playbook.
Economic Tailwinds
- $4.3B IU Health hospital. Downtown — opens 2027. Anchors healthcare workforce demand.
- $3.7B+ additional projects. Stacked development in the Indianapolis urban core.
- 26,661 new MSA residents. In-migration from IL, CA, NY seeking affordability.
Top Submarkets
- Irvington / East Side. Best rent-to-price ratio · 1BR ~$800–880 · cash-flow focus · hospital proximity.
- Southside / Greenwood. Stable family tenants · low turnover · Class B & C sweet spot · affordable entry.
- Broad Ripple. Young-professional demand · 1BR ~$1,755 · higher entry · strong rent growth.
- Fishers / Carmel. A+ schools · low crime · premium Class B · longest tenant tenure.
Active operator strategy. Mid-grade reno $12k–$18k/unit → +$150–$200/mo · RUBS for immediate NOI · 6-year hold.
Columbus, OH — buying the softness.
Vacancy at a 20-year high after four years of oversupply, with the 2026 construction pipeline down 75%. We buy into today's softness and own the recovery. We underwrite zero Intel benefit.
Conservative Thesis
- Buy softness, own the recovery. Vacancy at a 20-year high after four years of oversupply — the best entry basis Columbus has offered in two decades.
- Pipeline down 75% for 2026. Deliveries collapse just as absorption catches up, handing pricing power back to existing owners.
- Zero Intel benefit underwritten. Intel's fabs are pushed to 2030–31. Our thesis does not depend on Intel and we credit none of it in our numbers.
- Strong landlord position. 3-day non-payment eviction notice and no statewide rent control.
- Suburban ring focus. Canal Winchester, Grove City, Gahanna, Westerville — 94%+ occupancy and minimal new supply.
Top Submarkets
- Canal Winchester / Grove City. Lower acquisition cost · suburban ring outperforming · steady workforce demand.
- Clintonville. Safest urban neighborhood · strong demand · steady appreciation · A+ schools.
- Gahanna / Westerville. Family-oriented · 94%+ occupancy · long-tenure tenants · low turnover.
- Olde Towne East. Emerging appreciation · lower entry price · higher active-management requirement.
Active operator strategy. Mid-grade reno $12k–$18k/unit → +$150–$200/mo · RUBS for immediate NOI · 6-year hold.
Seattle, WA — appreciation and a rent floor.
Seattle underwrites differently by design. Suburban ring only — Renton, Kent, Everett — never the urban core. Higher basis, lower going-in cap, longer hold, and a rent floor the Midwest cannot match.
The Seattle Thesis
- Appreciation and a rent floor. A durable rent floor and long-run appreciation the Midwest cannot match — this is our appreciation sleeve, not our cash-flow sleeve.
- 4M+ workforce at 3.5% unemployment. Deep, diversified employment across tech, aerospace, healthcare, and logistics supports the rent floor through cycles.
- Supply pipeline down 11%. Fewer deliveries into an already supply-constrained metro.
- Suburban ring only. Renton, Kent, Everett. We do not underwrite the urban core — by design.
- HB 1217 underwritten. Washington's rent cap — 9.683% for 2026, with 90-day notice — is modeled into every Seattle underwrite.
Target Submarkets
- Renton. South-end employment base · workforce housing demand · suburban ring only.
- Kent. Logistics and manufacturing corridor · deep renter pool · attainable basis for the metro.
- Everett. Aerospace and naval employment · northern ring · long-run appreciation runway.
Underwriting note. $200k–$260k per unit · 5.0–6.25% cap · 7–10 year hold · rent growth capped at HB 1217 (9.683% for 2026, 90-day notice).
Two risk/return profiles. One discipline.
| Criteria | Class B | Class C |
|---|---|---|
| Vintage | 1985 – 2005 | 1965 – 1990 |
| Price / Unit | $65k – $100k | $35k – $65k |
| Cap Rate | 5.8 – 7.0% | 7.0 – 8.5% |
| Reno Cost / Unit | $15k – $35k | $4k – $20k |
| Rent Premium | +$150 – $400/mo | +$75 – $250/mo |
| IRR Target | 12 – 15% | 15 – 18% |
| Cash-on-Cash Yr 1 | 5 – 7% | 6 – 9% |
| Tenant Profile | Mid-income workers | Workforce / essential |
| Mgmt Intensity | Moderate | High |
| Best Fit (Indy) | Fishers · Broad Ripple · Greenwood | Irvington · East Side · Southside |
How capital improvements multiply into equity.
Every $1 of NOI added becomes property value at the inverse of the cap rate. Discipline on the operating side does the heavy lifting.
Illustrative — 60-unit Class C, Indianapolis (7% cap)
| Metric | At Purchase | Post-Renovation | Change |
|---|---|---|---|
| Avg Rent / Unit | $950/mo | $1,150/mo | +$200/mo |
| Gross Rental Income | $684,000/yr | $828,000/yr | +$144,000 |
| NOI | $367,920 | $490,800 | +$122,880 |
| Property Value @ 7% cap | $5,256,000 | $7,011,429 | +$1,755,429 |
| Reno Cost (60 units) | — | $900,000 | Invested |
| Net Equity Created | — | — | +$855,429 |
Illustrative only. Not financial advice. Actual results vary by market, property, financing terms, and execution.
Submarket selection is everything.
Street-level diligence determines returns more than metro-level headlines.
Indianapolis, IN
Moderate citywide — suburbs significantly safer. East Side / Irvington below city average. Fishers / Carmel A-rated safety.
Fishers, Carmel, Greenwood: A+ rated. Hamilton County schools among the top in Indiana statewide.
- · Healthcare workers (IU Health $4.3B expansion)
- · Logistics & manufacturing (Amazon, Eli Lilly)
- · Tech & life-sciences professionals
- · In-migrants from IL, CA, NY seeking affordability
Columbus, OH
–20% drop in 2025 — improving trajectory. Clintonville, Bexley, Worthington among the safest neighborhoods in Ohio.
Clintonville, Bexley, Worthington A+ rated. Suburban-ring districts consistently A / A+.
- · Healthcare, logistics & distribution employment
- · OSU graduate & faculty housing demand
- · Young professionals — fastest-growing Midwest metro
- · Essential workers priced out of upgrading submarkets
Seattle, WA
Suburban ring only — Renton, Kent, Everett. Never the urban core, by design.
Washington HB 1217 rent cap underwritten at 9.683% for 2026, with 90-day notice requirements built into our operating assumptions.
- · 4M+ metro workforce at 3.5% unemployment
- · Aerospace & manufacturing (Everett)
- · Logistics & industrial corridor (Kent)
- · Renters priced out of the urban core
Conservative underwriting. Active execution.
Stress-test standard. Zero rent growth · 8% vacancy · 5% annual expense growth · every deal must clear 1.25× DSCR in the stress case.
Underwriting discipline
- Add 20% contingency to all renovation budgets. Contractor costs remain elevated in 2026.
- Three contractor bids before finalizing CapEx. Underwriting $12k/unit often meets $18k/unit reality.
- Model rent ceiling per submarket. Never renovate beyond what local market rents support.
- RUBS as immediate NOI lever. Ratio utility billing — no renovation required, instant return.
- Target 5 – 7 year holds. 6-year recommended in Indianapolis for optimum exit timing.
Got a deal that fits the box?
Submit it here. Doug personally reviews every submission. If it fits Indianapolis, Columbus or the Seattle suburban ring and our criteria, you'll hear back within one business day.