Episode 189: How To Underwrite Chicago Multifamily Buildings with Essex Director Rick Ofman

Straight Up Chicago Investor · Dec 29, 2022 · 58m

Rick Ofman has over six years of experience in commercial real estate and is a Director at Essex Realty Group.

Rick kicks things off by defining underwriting and associated terminology. He provides a thorough breakdown of income, expenses, and necessary assumptions. Rick shares insight on forecasting variables such as rehab costs, rent increases, and tax increases to name a few. He explains some valuation terms such as gross rent multiplier (GRM) and cap rate and the impact that interest rates have on these metrics. Rick closes with a bullish outlook on projected rent growth in Chicago and…