Don't blindyl follow fix-and-flip investors' project breakdowns. Consider holding costs, local market trends, and thorough property analysis to avoid costly mistakes.
I couldn't agree more, especially when it comes to multifamily deals. Pro-forma rent bumps of 3-5% annually can be overly aggressive, and a 30-40% expense ratio may not account for potential increases in property taxes or insurance. Loan sizing based on a 7-8% cap rate may also leave little room for error. What are your thoughts on stress-testing these assumptions to ensure a more realistic picture of potential returns?