UNDERWRITING QUESTION- OCCUPANCY

[Jason Malabute]

I invest C+ to B neighborhoods in the Indianapolis (including Bloomington and Terre Haute) and Kansas City (including the suburbs). If we are doing a value add and assume that occupancy won't stabilize until the 3rd year what would be a good rule of thumb to decrease occupancy in year 1 if you are planning to raise rent by a small amount $25-50 vs $100+ when underwriting?