PROPERTY INSIGHT · Multifamily Strategy Community

PROPERTY INSIGHT

Finding an apartment deal is one thing. Making the numbers work is another.

One thing I've learnt through property investing is that securing an attractive purchase price is only the starting point.

When looking at a potential multifamily opportunity, I think it's important to understand what sits behind the headline numbers.

Rental income and occupancy are important, but so are operating expenses, management costs, property condition, necessary improvements and reserves.

Then there's the financing structure. Whether it's traditional lending, seller financing or a partnership, the terms need to make sense alongside the property's income and ongoing costs.

I've seen how easy it can be to focus on getting a deal secured without giving enough attention to what happens once you own it.

For me, the real question isn't simply whether I can negotiate a good purchase price. It's whether the building can support itself, generate sustainable cash flow and leave room for a sensible exit.

Sometimes the best investment decision is recognising that the numbers or terms don't quite stack up, rather than forcing a deal.

For those actively acquiring multifamily properties, what's the first thing you tend to stress-test: rental income and operating expenses, property condition, financing terms or the equity needed to close?

Always interested in how other investors approach their underwriting and deal decisions.

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PROPERTY INSIGHT