Most people think underwriting is just plugging numbers into a spreadsheet.
Wrong.
Underwriting is one of the most important skills in multifamily investing—and most investors mess it up. They rely on broker fluff, emotional assumptions, or overly optimistic projections. And that’s how people lose money.
In Episode 253 of the Small Axe Podcast, I break down how to underwrite like a real operator—objectively, realistically, and with discipline.
Here’s what we cover:
🔍 What Underwriting Really Is
It’s not guesswork. It’s building a pro forma based on real data, comps, local knowledge, and conservative assumptions. We’re not buying dreams—we’re buying businesses.
🧠 The Four Metrics That Matter Most
I walk you through:
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Cash-on-Cash Return
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IRR (Internal Rate of Return)
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AAR (Average Annual Return)
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Equity Multiple
If you don’t understand these inside and out, you’re flying blind.
🧨 Common Mistakes That Wreck Deals
From misjudging debt terms to skipping tax projections to being too aggressive with your exit plan—underwriting mistakes can turn a decent deal into a disaster.
💡 What I Use Personally
I share what returns I’m willing to accept right now, what I look for in a deal, and how I use my own proprietary underwriting tool (which will be available soon).
Bottom line? If you want to be a serious multifamily investor, you need to sharpen your underwriting game.
👉 Listen to Episode 253 now
🎧 [Link to the podcast episode]
👉 Download my free Multifamily Credibility Kit
Get scripts, templates, and deal tools to stand out to brokers and investors.
📥 www.smallaxecommunities.com
