Using the Calculators to run numbers for multi-family

[Rose M.]

I started using the calculators to run the numbers of some deals but thus far all my results have been negative numbers. I'm not sure if I am being too conservative, not running the numbers correctly, or just that the deals I am looking at are not deals. When I receive the rent roll from the sellers, I will not see Capex included, low numbers for insurance, repairs, etc., 3% for property management, etc. Any advice to become more confident with the numbers?

[David Stafford]

Hi, @Rose M., 

I tend to be very conservative with my underwriting as well, but what you're likely finding are simply bad deals. This is one reason many listing brokers (or owners) like to use pro forma (speculation) to basically juice their numbers or make them look as shiny and great as possible. I only underwrite based on actuals and if you're doing the same and coming up with nothing remotely decent it's likely because you just haven't found a good deal. Keep underwriting, keep building relationships and eventually you'll find what you've been searching for. 

-dave