Growth assumptions when analyzing a deal

[David Wallace]

Hi Friends,

When analyzing a deal that you intend to hold, how do you determine your growth assumptions?

For example, how would you go about projecting rent increases during your expected holding period? How do you project any increases in operating expenses?

It seems like these assumptions would have a big impact on your expected cash flows, and therefore, the value of the property.

Any advice for modeling assumptions would be helpful.

Thanks,