What’s your underwriting criteria?

[Ryan Meggison]

I’m interested to know what everyone’s underwriting criteria is…

Cash on cash

IRR

DSCR

Expense ratio

1% Rule

2% Rule

50% Rule

Etc.

Basically how do you want to write a potential multi family investment property?

I’m aware there is no one-size-fits-all approach, I’m just curious to what you other BP’ers are doing…

When you post a reply, it would be helpful to know what market you invest in, and what your average deal size is, number of units, etc.

[Josh Oaten]

@Ryan Meggison

We underwrite using Google Maps, as the first thing we look at is the area a property is located. Some of the basics include:

• Major developments
• Big Box stores, major shopping
• Hospitals
• Education Facilities
• Comps
• Crime (Mainly shootings)
• MHHI

Check out @Omar Khan BP Blog on using Google Maps to underwrite

https://www.biggerpockets.com/member-blogs/10776/79833-underwriting-the-google-way-building-maps-not-numbers