Underwriting an 8-Unit. How does it look?
Looking at an 8-unit and would love your feedback on where I may be over/under conservative. I have the inplace that the seller "shows" and then my assumptions for the current year. All units expect the last one are occupied and on a year lease. The last unit was the owners unit so I am making an assumption there current to market.
Project is in California.
@Chris Fi
From a Leonard perspective, we’re going to look at the property address, and the operating income statement of the building, and your ability as a property manager. That’s 80%.
The other 20% is your personal income assets and credit used for illustrating your financial responsibility.
Jim
Originally posted by @Jim Blackburn:@Chris Fi
From a Leonard perspective, we’re going to look at the property address, and the operating income statement of the building, and your ability as a property manager. That’s 80%.
The other 20% is your personal income assets and credit used for illustrating your financial responsibility.
Jim
Yep. Ive been providing everything except an income statement...they literally only had a spreadsheet of the rents coming in and the expenses he thought he had for the year. So I have requested a T12
@Chris Fi you are doing it right. Subtract your capital reserves from your free cash flow before you calculate our COC. Also, take out your debt service.