Our model (buy, rehab, refinance to return capital, hold w investors forever) turns out to work well with the Opportunity Zone rules. Bizarrely, a few LA 'hoods, in which we've done ~20 deals, are OZs (bizarre bc they didn't need the help). Starting to look closely at this now.
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Most re private eq models assume express after 5 years or something to get the irr to be palatable. It's don't. Most rehab models don't meet the substantial improvement test; ours do. Seriously, go read the law or a good summary.
I did. Of course your improvements are substantial, too bad you don’t sell.