Deferred Maintenance when underwriting Multi Family

[Tony Gunter]

How do you work the money you will have to invest to address any deferred maintenance into your underwriting of a prospective multi family property? Is this done with adjusting the cap rate when evaluating the property? I can come up with a dollar figure to work with, but how do I bake this into the evaluation to come up with what my target price should be? Help and advice welcome.