I am a commercial mortgage banker. One afternoon in June of 2018, I found myself pleading with my client who had fallen madly in love with an overpriced, vintage 16-unit apartment complex in the hip neighborhood of Lincoln Park, Chicago: “Please don’t do this! You cannot buy this property at a 5.50 cap, and then put $700,000 into renovating it. You will not be able to raise rents high enough to make this pencil.”

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