17
Mentioned my small multifamily deal to a senior lender over coffee
He said I was overpaying for a 7 unit in Phoenix because my cap rate was 5.2 and the area comps were flattening, and it made me realize I never checked the local rent growth data before I signed the LOI has anyone else had an offhand remark totally change how they look at a deal?
2 comments
Log in to join the discussion
Log In2 Comments
wyattmitchell21h ago
Used to think cap rate was the only number that mattered, like if the math worked on paper I was good to go. But that offhand comment about rent growth data hit me different, now I'm pulling historical rent trends for every market before I even think about signing anything. You can build a perfect proforma but if the local rents are flattening your whole deal is just a gamble on appreciation.
4
grace_perry4411h agoMost Upvoted
Show me which specific rent growth metric you're focusing on now.
8