•Evaluate similar properties, project vacancy rates and estimate absorption figures.

We need to have a target mark of deals that we are looking at.Underwriting -Underwriter should either UW their own deal or get a deal sent to them via email and file and respond back once it is done.Understand the market; figure out rents per square and absorption rate in the area of comparable products (We need costar of other informational site for this).Underwriter should plug in numbers into existing underwriting ( broken up by asset class Multifamily/ Industrial ).

also i would be looking to talk to the big MHP operators.. although with MHPs  absorption is the key.. 

3) What will be the absorption rate?

It’s important to know what the inventory of units is in your market, and what the absorption rate is.

If not recently, the owner doing the financing is basically getting the new owner to assume the rehab cost, the vacancy absorption cost during rehab, and the marketing for new tenants to lease units at the higher rental rate.

Know the schools, the different communities, days on market, absorption rates, average/median sales price, etc.

Time is of the Essence as we know and its true in our little 90 home development. so instead of 18 month absorption for the first 30 homes we sold them all in 6 months.

Boston market is down 45% from last year and absorption rate is up 100% so increased bidding wars and higher customer demand.

The investment thesis into multifamily is as strong as it ever was, homeownership is increasingly unaffordable, construction delays due to the pandemic will further add to supply constraints - increasing absorption rates, occupancy, and rent growth.