Stress-test your worst-case assumptions (other than the zombie apocalypse, which no one can predict).

I think it is reasonable to include fixed, predictable expenses, like taxes, in your proforma, but numbers like utilities and R&M are best estimated using historicals.At the end of the day, the buyer will do their own underwriting and come up with a number that works for them. 

I am not predicting anything....but as someone who is very active in the market know of over 4000 units for sale right now in the MF industry....brokers have told me they expect the same for 2019.   

Steve For full disclosure, I am personally in this space, before being in the space, I had a chance to review hundreds if not thousands of syndications and varying models of such.Critical items:Minimum Investment AmountAccredited or Non-accredited or (Mix)Sponsor Track RecordCritical impact items that will cause the value to increaseSponsor FeesSponsor Equity Participation (Always like to see skin in the game)Cost of capital and capital (capital stack structure)IRR (will predict timeline so time is X)Cash FlowCash on Cash %Hope this helps a little bit

Crash prediction is as follows:More apartments staying vacant (seattle times article and npr podcast on nyc yesterday)Projects are permitted and planned years in advance so even as commercial multi family of 50+ are crashing, they are still buildingOk n next 2 years smaller devlopers and property managers to go under, default, get bought out.

I am trying to gain more knowledge and experience with understanding and predicting the real estate market.

I am trying to gain more knowledge and experience with understanding and predicting the real estate market.

I have only taken Scott’s so I cannot comment on others but his training has been instrumental in my development where I have bought 60+ notes in past 18 months a good real estate calculator will have a PV function.. that is the heart of the matter in note investing.. just learn how to do that one function first off.. 

Thanks, Eric.I believe you are correct with your prediction of future growth in the sac area.

But if I would get a loan from a bank now and the property goes down later then is more predictable since the loan is already fixed in place, but if it goes down before I get the loan, then I might not even get a loan.