Settlement is faster.

You’re thinking about this the right way, and your instinct to not pay near stabilized value is exactly right.For a fully vacant, 1950s vintage, gut-renovation multifamily, the pricing should be driven by risk, time, capital exposure, and execution, not just the end value.A few framework points that may help:1.

This is one of those areas where there isn’t a universal rule, but there is a framework that keeps you profitable without creating unnecessary turnover.A few principles I use:1.

The sweet spot is in the middle.Here’s the framework I use when coaching new investors:1.

@Ricardo Vergara, A true passive investor builds a simple decision framework and sticks to it.

A January hold remains the base case, with any next move pushed later into 2026.Addison, Allen, Anna, Azle, Batch Springs, Bedford, Benbrook, Burleson, Cedar Hill, Celina, Cleburne, Colleyville, Coppell, Corinth, Crowley, DeSoto, Duncanville, Ennis, Euless, Farmers Branch, Fate, Flower Mound, Forest Hill, Forney, Glenn Heights, Grapevine, Greenville, Haltom City, Highland Village, Hurst, Keller, Lancaster, Little Elm, Mansfield, Midlothian, Mineral Wells, Murphy, North Richland Hills, Prosper, Red Oak, Rockwall, Rowlett, Royse City, Sachse, Saginaw, Seagoville, Southlake, Terrell, The Colony, Trophy Club, University Park, Watauga, Waxahachie, Weatherford, White Settlement, Wylie, Dallas, Fort Worth, Plano, Irving, Garland, Grand Prairie, McKinney, Frisco, Mesquite, Carrollton, Denton, Richardson, Lewisville, or Arlington

If you don’t have an answer off the top of your head, that’s not necessarily a problem — but it might be a sign you need more clarity on your investment framework before diving in.One final note — before you make any big moves, I highly recommend reading Real Estate by the Numbers by J Scott and Dave Meyer.

The most important factors to retain are:- Making your payment on time- Knowing/computing your entrance costs, holding costs and the monthly payment amount before submitting the offer- Understanding the draw system so transitions are efficient- Order of operations/project management- Loan points (some are front-end and some are back-end)- And last but not least, completing the project on time and crossing the finish line (aka settlement), paying the loan off in full.

Treasury yields are a little higher, but yesterday’s “sell America” theme continues to drive stocks lower; the DOW is currently down 321 points.Addison, Allen, Anna, Azle, Batch Springs, Bedford, Benbrook, Burleson, Cedar Hill, Celina, Cleburne, Colleyville, Coppell, Corinth, Crowley, DeSoto, Duncanville, Ennis, Euless, Farmers Branch, Fate, Flower Mound, Forest Hill, Forney, Glenn Heights, Grapevine, Greenville, Haltom City, Highland Village, Hurst, Keller, Lancaster, Little Elm, Mansfield, Midlothian, Mineral Wells, Murphy, North Richland Hills, Prosper, Red Oak, Rockwall, Rowlett, Royse City, Sachse, Saginaw, Seagoville, Southlake, Terrell, The Colony, Trophy Club, University Park, Watauga, Waxahachie, Weatherford, White Settlement, Wylie, Dallas, Fort Worth, Plano, Irving, Garland, Grand Prairie, McKinney, Frisco, Mesquite, Carrollton, Denton, Richardson, Lewisville, or Arlington

Either the cap rate is higher, or the NOI is less reliable, or both.So your valuation math is right, but the 7.3 percent cap rate might not be the right input for this exact building.3) Your DSCR back into price is also mostly right, but make sure you are using lender NOIYour logic is:Max debt service = NOI ÷ DSCRConvert that payment into a loan amount using rate and amortizationConvert loan amount into price using LTVThat framework is fine.But lenders often underwrite DSCR using their own NOI version.