Where SFR Underwriting Differs From Multifamily
enero 20, 2022
Article by: Katherine Sayre
Underwriting a build-to-rent property is not much different than underwriting an apartment asset. Many of the costs, expenses and vacancy trends are similar—but there are a handful of disparities.
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Kris Oxtal, MAI at Capright shares his insights, «While underwriting for BFR properties overall trend in line with multifamily, there can be some small differences highlighted in this article. Taxes remain one of the larger questions as jurisdictions decide whether to assess as a single-family or multi-family property. As mentioned in the article, unit turn costs can offset some of the savings expected from lower turnover ratios. Budgeting for increased turn costs in the out years of the cash flow can help prevent this potentially unexpected cost.»