MWest Holdings is known for its tremendous success redeveloping historic 1920s poured-in-place concrete buildings. These charming properties are also rent controlled, a characteristic that a lot of investors might shy away from. Karl Slovin, president of MWest Holdings, however, says that rent control isn't a deal breaker. As long as you play within the rules and develop realistic business plans, you can find success. We sat down with him for an exclusive interview to discuss his approach to investing in rent-controlled properties.

GlobeSt.com: You have seen tremendous success with historic and rent-controlled apartment properties that some other investors may have shied away from. Why are you so open to rent-controlled properties and how do you make it work?

Karl Slovin: We don't shy away from rent control because we believe that once you know the rules, you can play the game within the rules. You just have to follow the rules. We can't overpay for a building, and we are not going to underwrite 100% turnover of the units. We are only going to underwrite 50% turnover of the units. Each building has a very specific business plan, and we model it out very carefully. Over a period of time, you become an expert in working in 1920s poured in place concrete buildings that are rent controlled, and you learn how to build that model and what you can pay and what you can't pay. We love these buildings and we certainly want to buy as many as we can, but we can only afford to pay what the underwriting tells us that we can pay. We don't need to do deals, and we will only do deals when it makes sense.