@mannyawasom: Default ratio at 90%? Income only has to drop 10%. How to read the default ratio (aka break-even ratio) on a multifamily deal: Default ratio = (OpEx + debt service) ÷ income. At 90%, income only has to drop 10% before you can't meet your expenses. A good default ratio: about 70% to 80%. Why it matters: At 80%, income has to fall at least 20% before you're in default. That's your cushion when occupancy or rents slip. Save this check: (OpEx + debt service) ÷ income. Aim for 70–80%, so income can fall at least 20% before default. 🎓 FREE MSA Deal Room every Saturday 9:00 AM PT 📍 msadatainsights.com/dealroom 🏢 See how XSITE Capital underwrites its deals: xsitecapital.com #multifamily #underwriting #realestateinvesting #commercialrealestate #apartmentinvesting #breakevenratio #riskmanagement

Manny Awasom

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Monday 26 October 2026 14:20:00 GMT