We are inverse from 2020, which was way too few properties and way higher demand.Now, we have decreased demand and way too many properties.That said, there are some deals to be had in the Smokies these days!  

The biggest underwriting mistake I see in multifamily is trusting the pro forma more than the in place story, so build a repeatable process that stress tests the boring stuff like expenses, reserves, capex, concessions, and your exit cap.

Because it allows you to sell and reposition your portfolio at any point in time without paying tax on the reposition.If you want to alleviate some of the stress of owning multiple properties, you could do what we call a consolidation exchange.

What's your go-to method for stress testing deals?

In states like Texas or Florida, that can literally double the tax expense overnight and turn a 7% cap rate into a break-even deal.I've started stress-testing all my deals with a 'Year 2' tax bump just to be safe.

I gather info for every market and/or state in the US and 43 of 67 markets and states (all across the US) I track saw Days on Market (DOM) decrease month over month.

It is sort of weird watching a person who has retired, jump into the world of REI and in essence create a new full time, stress saturated job for themselves.

Before they submit an offer, they already know which income will count, how sensitive proceeds are to trailing rents, and whether the exit still works if the refi looks worse than expected.If those questions aren’t answered early, they get answered later, when there’s no flexibility left.Would love to hear how others here stress test financing assumptions before locking up a deal Love this post.

Was it time, scale, stress level, cost, or something else?

If you’re not on the ground, don’t stress about driving for dollars the old-school way.