Underwriting Margins During Covid

[Justin R.]

I believe every economic environment has the potential to offer personal and business growth when we adapt to change. During the Covid crises I have continued to analyze and make offers on multiple-family and apartment homes. Although I am not particularly "low balling" anyone, I do factor in margins for the unknown during these volatile times.

Personally I have been adding to my vacancy reserve (physical/economic vacancy growth) as well offering at a slightly decreased amount (1 percent above prevailing cap rate) due to the current state we are in (Covid, Eviction protections, Unemployment, etc.) 

Please share whether or not you have been factoring in margins during these tough times and how your underwriting has adapted.