Multifamily Underwriting in 7 Steps (14-Unit Example)

Multifamily underwriting is an absolutely crucial skill if you’re trying to build a large real estate portfolio. At first glance, underwriting a multifamily deal can seem complicated, with so many moving parts in the mix. Thankfully, with some practice and advice from mentors, you can become an expert in multifamily and find the gems that other investors are missing.

Alessandra Thompson joins us again this week to discuss the seven steps she takes to underwrite a multifamily property. If you own single-family rentals, you may see some similar steps used. While there are some very similar steps, it’s important to note that multifamily properties take a bit more effort to underwrite, since accuracy is crucial to forecasting rents, appreciation, and the ability to refinance in the future.

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00:00 Intro
00:55 7 Steps to Underwriting Multifamily
10:50 Scanning the T12 and Rent Roll
15:41 Plugging in The Numbers
24:32 How to Become a Better Underwriter
26:49 Getting Started NOW

[davidlyash]

This is how education needs to be done. Steps 1, 2, 3 etc - showing real life examples. This is easily the best educational video on underwriting on BP. Bright girl with a bright future

[kylechiang]

She is incredibly smart. Well done guys!

[richardthelionheart]

This is such valuable information! I hope all newer investors watch this and bookmark it…great job!

[RealEstateWithRay]

This is by far the best underwriting video I've seen on YouTube thanks for this 🙌🏾🙏🏾

[vnsa]

Finally, a step-by-step! Thank you for the information!

[billsmithmole]

Some of the best and most informative real estate investment content out there, like usual Chris!

[kevinpeake]

Great episode Chris, Terrance, and Alessandra. My favorite tactic from this episode is that you should go onto broker websites and practice underwriting their listed properties. I just started doing this and its helping me learn my market!

[antoniolara]

Best explanation for rookie investors ever great job really appreciate it

[juliusa]

Awesome interview and thank you to the Trio for sharing your expertise

[travisjacobsvideos]

Great show! Alessandra is definitely putting in the work! I have a very similar approach to underwriting but I learned how to do it by just taking action. I think that's the best thing anyone can do. Mistakes may be made along the way or missed opportunities, but it propels you forward!

[julianoamparino]

This is exactly what I needed. Many thanks!

[NGF-Life]

Great episode. This spreadsheet looks pretty well build. Is this something you created in house or you followed a template? Thanks for sharing your underwriting process.

[noahdavis]

Love this spreadsheet. How can I find one similar?

[icemanant]

Thanks, you all are so amazin. Feels like I'm getting free lessons from Kobe Bryant but just in real estate

[Tyler-ltxh]

could you attach the T12 she had? Would be great to have that to build my own

[marcosmachadodossantos]

Great information!! Thank you so much.

[NoSeed]

Thanks for the video. A question from a rookie here: for SFH, underwriting is done by the lender. Is this not the case for multi-family? Or is the underwriting here just mean some due financial diligence as an investor?

[Meyou]

Thank you! Best way to get financials?

[kimhimes]

Great content! Love the way Alessandra's mind works..very systematic approach and analytical, not emotional. Much like my mindset!

Is there a software program you recommend for analysis, or do you have a spreadsheet resource? I have heard of Buildium, but not familiar with any others..

[moshemayer]

Love it!

Thank you Terrence and Chris!


Keep Rocking Alessandra!

Eat Drink and Sleep Real Estate.

Live It Love It cause its Awesome!