In the 2023 Real Estate Club at IU Case Competition, my team of 3 peers was acting as analysts on behalf of an investment firm, making a decision on whether to purchase a real-life property. This case involves in-depth research across market analysis and comparable properties, along with developing future cash models. These included changes to the operating model, levered and unlevered cash flows, and acquisition and renovation cost predictions.
Our Analysis
Through our research, we identified that the property had significant renovation potential, which would allow for increased rental income and overall value enhancement. After carefully weighing the costs of renovation against projected returns, we formulated a strategy focused on modernizing the property’s weak points while maintaining its core components. Our final recommendation was to undertake a targeted renovation plan that would elevate the property’s market appeal and justify higher rent prices. This approach aimed to maximize the investment's long-term profitability, making it a compelling option for investors. The experience honed my analytical skills and reinforced the importance of strategic planning in real estate investment.
