Underwriting During A Pandemic

[Hayden Harrington]

I am curious to know how your underwriting has been since the pandemic hit this year? With lenders requiring an additional 6-12 months of P&I reserves, rent growth is a big question mark and understanding your tenant base has become even more crucial than ever, there are some significant headwinds that must be navigated at the moment. For us, we are paying close attention to delinquency reports and we are having brokers pull them for us at different points of the month so we can get a better understanding if tenants: can pay, are paying late, or are not able to pay at all.

What are you paying close attention to when underwriting/evaluating an investment opportunity? 

[Kim Meredith Hampton]

@Hayden Harrington We are doing the same. I actually have a 24 unit under contract right now with agency financing, and the financial stability of the property/rent roll has been all over the place. Most important right now in light of whats going on with Covid and the moratorium