06/24/2026
One of the biggest mistakes multifamily investors make is reacting emotionally to purchase price instead of underwriting the debt structure properly.
A property can appear expensive at first glance and still be highly investable.
And a cheap property with weak debt structure can become difficult to hold.
Because the real performance depends on:
• Income
• Expenses
• Leverage
• Interest rate
• Amortization
• Debt service coverage
The building matters.
But the debt attached to the building often determines survivability.
What do you react to first when reviewing a deal?
A. Purchase price
B. Projected cash flow
C. Interest rate or amortization