Updated 3 days ago on . Most recent reply
Dalton MongoldPoster
#4 Multi-Family and Apartment Investing Contributor
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#4 Multi-Family and Apartment Investing Contributor
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What’s One Assumption You Always Stress Test?
Dalton MongoldPoster
#4 Multi-Family and Apartment Investing Contributor
Pro Member
#4 Multi-Family and Apartment Investing Contributor
When underwriting a multifamily deal, there are a lot of assumptions that can make or break the outcome.
Some investors stress test:
• rent growth
• vacancy
• maintenance
• insurance
• taxes
• renovation costs
• exit cap rates
• interest rates
For those actively investing, what’s the one assumption you always pressure test before moving forward on a deal?
Interested hearing where experienced investors build the most margin for error in their underwriting.