Begin with rentable reality
Use supportable rent, realistic vacancy, and the unit’s actual condition—not an optimistic listing estimate. Compare similar units, then account for concessions, leasing, turnover, cleaning, repairs, and downtime. Furnished or short-term plans must comply with building rules and law.
Build the full expense and risk picture
Include assessments, taxes, insurance, utilities, management, maintenance, replacements, leasing, professional costs, and a capital reserve. Stress-test the plan rather than presenting one perfect forecast.
- Calculate cash flow before and after financing.
- Test lower rent, vacancy, taxes, interest rate, and a special assessment.
- Separate recurring operations from capital replacements.
Underwrite the association and exit
Confirm rental caps, minimum leases, waitlists, move fees, approvals, investor concentration, and litigation. Then consider the future buyer, competing buildings, assessment level, layout, parking, view, and condition. Return should compensate for illiquidity, concentration, and management time.
360 perspective
A credible investment analysis combines conservative income, complete expenses, association rules, financing, capital risk, and a realistic exit.
Frequently asked questions