Underwrite a value-add deal on market rents, not the seller's pro forma

For Acquisition & investment teams · also Owner-operators & property managers, Lenders & debt funds

What is the fair market rent for the units at [address] — am I under-rented against the attached rent roll? Then underwrite this: [address] at [asking price] from the attached T-12, using that market rent as the stabilized rent. What is the return and is the entry price right?

You give

The address; the rent roll; the T-12; the asking price

You get

Fair market rent, $/SF/year and per month, with the leases behind it, in the assistant

Then

Underwriting — ask for it in the same conversation once step 1 is done