Underwriting a $1.5M 20-Unit Property

Описание: In this video, I walk through my complete underwriting process for a $1.5M, 20-unit commercial residential property. This is a real deal we're pursuing, and I break down every step of the analysis—from income statement to cap rate to financing structure to market analysis.

If you're learning to underwrite multifamily properties, this video shows you exactly how a professional analyzes a deal.

📊 WHAT YOU'LL LEARN:

INCOME STATEMENT BREAKDOWN:
• Gross Potential Income calculation
• Vacancy loss and how to estimate it
• Other income streams (parking, fees, etc.)
• Effective Gross Income (EGI)
• Operating expense breakdown (where I get the numbers)
• Net Operating Income (NOI) calculation

EXPENSE ANALYSIS:
• How to research and calculate each expense category
• Property taxes, insurance, utilities, maintenance
• Property management fees
• Capital reserves
• Where to find comparable data (D12 analysis)
• Common mistakes investors make with expenses

CAP RATE CALCULATION:
• What cap rate means and why it matters
• Current cap rate: 7.7%
• Projected cap rate: 10% (after value-add improvements)
• How cap rate changes with rent increases
• Using cap rate to evaluate deals

DEAL VALUATION:
• How to determine if a deal is worth pursuing
• Comparing to market standards
• Identifying value-add opportunities

FINANCING STRUCTURE:
• How the deal is being financed
• Loan terms and structure
• Debt service coverage ratio (DSCR)
• How financing impacts cash flow

MARKET ANALYSIS:
• Market overview and trends
• Rent growth potential
• Tenant demand
• Competition analysis
• Why this market is attractive

🎯 KEY NUMBERS:
• Purchase Price: $1,500,000
• Units: 20
• Current Average Rent: $960/unit
• Projected Average Rent: $1,150/unit
• Current Cap Rate: 7.7%
• Projected Cap Rate: 10%
• Rent Growth Potential: $190/unit (+19.8%)

💡 WHY THIS MATTERS:

Most investors don't know how to properly underwrite a deal. They either:
❌ Overestimate income (too optimistic)
❌ Underestimate expenses (miss hidden costs)
❌ Don't understand cap rate (can't compare deals)
❌ Make emotional decisions instead of data-driven ones

This video shows you the RIGHT way to analyze a commercial multifamily property so you can:
✅ Accurately evaluate deals
✅ Identify real value-add opportunities
✅ Make confident investment decisions
✅ Avoid bad deals that look good on paper
✅ Understand the numbers behind professional underwriting

💬 QUESTIONS? Drop them in the comments! I respond to all questions about underwriting, deal analysis, and commercial real estate investing.

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