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Our Philosophy

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Painted Sky Properties is a buy and hold investor focusing on finding value-add apartments. We are actively pursuing properties in desirable locations throughout Central Pennsylvania, with high rental demand, which we can force appreciation (increase the value) from day one. This is achieved by following a simply process of Buy, Renovate, Rent, Refinance, Repeat (the “BRRRR Method”, as coined by Bigger Pockets). It is a scalable, easy to follow business model that we duplicate on every deal.

At the heart of multifamily property is what we call our
“Core Four” metrics:

  • Appreciation: Real estate offers both short and long-term appreciation. We target mismanaged, under-utilized properties which we can force appreciation from day one. This is typically achieved through thoughtful improvements to the physical property (renovations, repairs, updates, etc.), increasing income (rents, laundry, storage, etc.) and improved management. While real estate generally appreciates slowly over time, we are looking for properties that can be quickly improved upon, in turn accelerating, or “forcing” appreciation. Unlike single family homes that are valued based on other comparable sales (comps), commercial real estate values are driven largely by the properties financial strength – such as its Net Operating Income. This allows us to refinance the properties and return investor capital. Once improved and refinanced, we hold the properties for continued long-term appreciation.

  • Cash Flow: An updated, well managed property will attract excellent tenants and demand higher rent – this results in lower expenses and higher income, thus increasing our cash flow position. Of our “Core Four”, strong cash flow is our chief focus. When a property is producing strong cashflow, the other items in our Core Four will likely follow.

  • Amortization: This is the term that describes the paying down of debt over time (a mortgage). Leveraging assets via historically low-interest debt is a great way to grow our portfolio. Overtime, however, the goal is to reduce our debt position on the properties. This is achieved via monthly rental income and other income streams, such as laundry, storage and other amenities.

  • Depreciation/Tax Benefits: Possibly the most under-rated and overlooked aspect of real estate are the numerous tax benefits of owning and selling real estate. Tax benefits can be realized during ownership and at the time of disposition.