@mannyawasom: There is a silent metric wiping out multifamily profits right now. Higher cap rates mathematically equal lower property values. If you are not factoring this exact shift into your models, your deal might already be underwater. Before you sign an LOI chasing a high IRR, you need to run this exact framework: The Debt Threat: If your deal relies on short-term bridge loans, an expanding cap rate will crush your numbers fast. The Margin Rule: Winning investors are not squeezing spreadsheets for pennies. They are buying with deep operational margin. The 1% Stress Test: Never assume you will sell for the exact valuation you bought at. You must ask yourself: What happens to my returns if my exit cap rate increases by a full 1%? If that single adjustment breaks your deal, do not sign the contract. Learn how to safely stress-test your exit: msadatainsights.com/dealroom 🔗 #multifamily #underwriting #RealEstateInvesting
