What I’d Improve If I Were Underwriting This Deal

[Seph Hancock]

One exercise I like doing is reviewing deals and asking: “What would I change if I were underwriting this myself?” A few areas I typically examine: 1) Rent assumptions – Are they supported by actual comps or are they optimistic? 2) Rehab budget – Is there enough contingency built in for surprises? 3) Vacancy and maintenance reserves – Are they realistic for the market? 4) Exit strategy – Does the deal still work if market conditions change? 5) Financing assumptions – Have all lender fees, closing costs, and reserves been included? Sometimes a deal looks great on paper until one or two assumptions are adjusted. For experienced investors: What’s the most common underwriting mistake you see newer investors make? And if you’re newer to investing, what’s the part of underwriting that gives you the most trouble? Looking forward to hearing different perspectives. #RealEstateInvesting #Underwriting #BRRRR #FixAndFlip #RentalProperty #DealAnalysis