The version of you that brought you to this level of success is not the same version that will bring you to the next level. You must be willing to continuously grow if you are to reach the next level of ascension you aspire to reach. “Lisa Marie Pepe” “Growth requires a new version of you. The mindset, habits, and identity that got you here will not be the same ones that take you higher. Expansion demands evolution.” Are you willing to become your improved self?

After three years in multifamily operations and underwriting over $250M in potential acquisitions, I wanted to share some of my observations and perspectives. I am not claiming to know everything about this stuff, because I certainly do not. I’m still learning every day, but I hope these insights prove useful and spark conversation about important topics in the multifamily world. Here is the thought I will be unpacking today: There is often a noticeable pricing and cap rate gap between 1970s vintage product and late 80s / early 90s vintage assets, even when they sit in the same submarket. For seasoned investors this may seem obvious, but I think it’s worth breaking down the underlying reasons. If you feel I missed anything feel free to comment and let me know. Below are some of the biggest reasons I believe this gap exists, along with a few things I personally look for when underwriting and touring these types of assets. TLDR: 1970s multifamily properties often trade at higher cap rates because they carry more operational and capital risk. Aging/out-dated plumbing, environmental considerations, insurance friction, and dated layouts all contribute to the discount compared to late-80s or early-90s product. But with careful diligence and the right business plan, that discount can also create opportunity. --- Why the market discounts 1970s product 1. Major systems are closer to the end of their life Many 1970s properties are approaching replacement cycles on multiple systems at once: Roofs Plumbing Electrical panels Parking lots HVAC systems When several of these items hit their replacement window at the same time, buyers must underwrite meaningful near-term CapEx. That risk gets priced directly into the purchase price. This can be the case with 80’s and 90’s product as well, but you may be going on even ANOTHER replacement cycle for some of these systems. 2. Plumbing systems and repipe risk One of the biggest dividing lines between vintages is plumbing materials.

I am currently located in St Paul/Minneapolis, MN, where I live and work I am here to network, collaborate, and JV. I manage a small mastermind, where I help newbie investors by their first multifamily apartments, I also do structured finance with stack funding where I structure and negotiate the deal for my clients & JV as capital partner, and lastly I am a licensed financial planning professional with a financial service firm, where I help my clients set-up infinite banking with ability to leverage $1 in three places; income protection (Get cover while earning interest and borrow from yourself), bank (Lend using your borrowed funds), and as collateral for a line of credit.

As a multifamily investor and entrepreneur, be mindful of credit and debt. Credit Utilization: The Signal Lenders Watch Closely - Credit utilization measures how much of your available revolving credit you’re using at any given time. It’s one of the most influential components of your credit profile. Why It Matters: It accounts for 30% of your FICO score, second only to payment history, below 30% is considered healthy; below 10% is ideal for top-tier credit, and consistently using more than 50% of your available credit can signal financial strain and may lower your score by 50–100 points. Consumer Debt Management: The Practices That Keep You in Control - Debt management refers to how effectively you handle your credit cards, loans, and other obligations. Strong habits reduce financial stress and improve long-term credit outcomes. Core Practices: Monitor balances and due dates to avoid surprises and late payments, pay more than the minimum to reduce principal faster, and cut interest costs. Limit new debt—especially when utilization is already elevated—only for business purposes, not for consumption, and use support tools—such as budgeting systems or consolidation—when needed to regain control. How They Interact - Credit utilization and debt management are deeply interconnected: High utilization often reflects weak debt management, especially when balances roll over month after month, Strong debt management keeps utilization low, which strengthens your creditworthiness and reduces borrowing costs, and Timely payments remain non‑negotiable—even while working to lower utilization, you must pay at least the minimum on all accounts to avoid a 30‑day late mark, which can severely damage your score. The Bottom Line: Managing your debt wisely is the engine; low utilization is the outcome. Together, they form the foundation of a resilient credit profile and a healthier financial future.