Right metric to use for underwriting
Hello,
When I underwrite deals and analyze the expenses, I have problems to see what could be out of order (besides property taxes around 2% in Florida and management fee 3-5%). Since the deals also vary in size (100-400unit portfolios) and asset class (b+ to c- ) I was hoping someone could assist with some support. Are you looking at the per door expense? Is that the right metric to use to determine easily if numbers could be out of rack?
Thanks a lot