Feb 7 • General discussion
📊 Underwriting Tip: Don’t Guess Rent Growth, Compare It
When reviewing a deal, always compare market rents to the current rent roll.
Here’s what you’re looking for:
🔍 Rents Match Market
➡️ Limited upside. Deal must work as-is.
📉 Rents Below Market
➡️ Potential value-add. Validate why they’re low (management, condition, lease terms).
📈 Rents Above Market
➡️ Red flag 🚩Future projections may be inflated or unsustainable.
💡 Pro Tip:
Future projections should be earned, not assumed. If the rent roll doesn’t support market claims, your underwriting should reflect reality—not the broker’s pro forma.
👇 Want to sharpen this skill and underwrite with confidence?
Join our ProSphere Skool Community where we break down real deals, rent comps, and underwriting frameworks step by step.
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📊 Underwriting Tip: Don’t Guess Rent Growth, Compare It
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