If you put a multifamily deal in front of me today, I’m not going to start with the pool, the gym, or the lobby. I want to know who lives there, what they can actually afford, what they’re paying today, what else is being built nearby, and most importantly, what I’m paying for the property. There’s a tremendous amount of multifamily development happening across Miami and South Florida. I’m a big believer in this market, but being bullish on Miami doesn’t mean every apartment deal makes sense.
In this video, I talk about some of the questions I ask when evaluating a multifamily investment, from local supply and tenant affordability to rents, competition, and purchase price. Demand for housing and demand for your specific apartment at your specific rent are two very different things. A great apartment building can be a bad buy, and an imperfect apartment building can be a great buy. The difference is usually in the numbers.
Timestamps
00:55 How I Evaluate a Multifamily Deal
01:20 Good Building vs. Good Investment
01:35 Miami’s Multifamily Construction Boom
02:00 Why Not Every Miami Deal Makes Sense
02:35 Housing Demand vs. Your Demand
03:20 The $4,000 Rent Test
04:15 Where Good Underwriting Starts
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