Quick underwriting tip I locked in:
The seller’s expenses are NOT your expenses. A lot of people just plug in the financials and run with it… but that’s how you end up with bad assumptions. Instead: – Get real quotes (insurance, etc.) – Adjust for how you would operate – Don’t assume things stay the same Also—don’t forget expenses change over time. Rent isn’t the only thing that goes up. If you’re new, a solid target to keep in mind: → Aim for ~35% expense ratio at stabilization Curious—are you guys underwriting anything right now? What are you seeing?