What’s One Assumption You Always Stress Test?
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.