Updated about 5 years ago on . Most recent reply
Advanced mathematics used during deal analysis
Anyone on here use any advanced mathematics during deal analysis like determining rent increases, such as using Lagrange multipliers on a constraint curve of a function of price and vacant to maximize profit.
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Not really necessary, real estate is fairly simple. If you're trying to predict the future with math you're going to have a bad time.
As for the vacancy vs price, you have a pretty small range and most people will want a round number. $742 might be the most profitable on paper but you can't really charge that, tenants may stray away from that, or a large number of other unknowns. If you have a ton of units you can do tests etc but the rental demand changes from month to month in almost every market.