A simple framework that helps:1.Underwrite in-place rents, not pro forma, unless you can clearly justify increases.2.Assume 35–45% expense ratio all-in (taxes, insurance, repairs, vacancy, management—even if self-managing).3.Stress test the deal for higher taxes and insurance — that’s where small multifamily often breaks.4.Make sure it cash flows at today’s rate, not after a refi or rent bumps.Common mistake I see is underestimating expenses and overestimating rent growth.

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.

This is one of the more stressful situations Ive been in and would love some advice, thanks a bunch. 

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

My wife and I focus on long-term buy-and-hold investing, and I genuinely enjoy living in spreadsheets—running scenarios, stress-testing numbers, and making sure deals work on paper before they ever work in real life.

Holding this property longer will decrease that profit (as in losing money) by the day.

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.

Under utillizing the cash flow generated would decrease the value of this strategy. 

This allows for stress testing and seeing if numbers will work when conditions aren't optimal.

What examples of discipline would you stress in out of state investing?