Why Speed Matters in Multifamily Investing
In today’s tight market, the best apartment deals vanish in hours—sometimes minutes. If you can’t separate winners from losers fast, you’ll watch cash‑flow monsters disappear into someone else’s portfolio. The good news? You don’t need a 40‑tab spreadsheet to get a thumbs‑up or thumbs‑down.
Step 1. Pull the High‑Impact Numbers
Spend no more than three minutes gathering this data. Time yourself—you’ll be shocked how often you over‑research early junk.
Step 2. Run the “30‑Second NOI Snap”
Quick rule: If expenses aren’t provided, assume 45 % of gross rents for 50+ unit properties and 50 % for 5–49 units.
Example:
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Gross Rents = $85,000/mo ($1,020,000/yr)
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Expenses (45 %) ≈ $459,000
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NOI ≈ $561,000
Step 3. Calculate the As‑Is Cap Rate
If comparable Class B assets in the market trade at 6 %, and your quick calc spits out 5.1 %, you’re over‑paying—or the broker’s numbers are “pro‑forma fluff.” Toss or renegotiate.
Step 4. Hit the 1 % / 2 % Zen Check
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1 % Rule (Stabilized Assets): Monthly rents ≥ 1 % of purchase price? Good mid‑tier cash flow.
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2 % Rule (Heavy Value‑Add): After reno rents should hit 2 % of all‑in cost—otherwise your rehab budget may crush returns.
These heuristics flag overpriced deals long before you dive into lender quotes.
Step 5. Verify Debt Coverage in 60 Seconds
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Quick plug‑in: Use 7 % interest, 25‑year amortization, 70 % LTV.
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If DSCR < 1.25, banks balk or slash proceeds—pass unless you can raise more equity or bump NOI fast.
Step 6. Gauge Value‑Add Upside (Two Questions)
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“Loss‑to‑Lease?” If in‑place rents trail market by 10 %+, upside is real.
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“Light or Heavy Lift?” Paint‑and‑flooring rehabs under $10k/unit move quick; heavy cap‑ex ($25k+) can break timelines and budgets.
If the answers are “yes” and “light,” move to full underwriting; if “no” and “heavy,” next deal, please.
Step 7. Green‑Light Checklist
Use this checklist to determine if its a good idea to move forward on a property or not.
Common Pitfalls to Dodge
Don’t let these common mistakes trip you up
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Broker Pro‑Forma Traps – Verify actual T‑12 income, not fantasy “projected” rents.
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Tax Reassessment Shocks – Recalculate taxes at purchase price; many counties revalue day‑one.
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Insurance Surprises – Coastal or hail markets can spike premiums 30 % in a year. Lock quotes early.
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CapEx Blind Spots – Roof, HVAC, and plumbing stacks can nuke your first‑year cash flow. Walk every building.
Tools to Shave Hours Off Your Workflow
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Free Cap‑Rate & DSCR Calculator – Download on my site (no opt‑in hoops).
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90‑Second Deal Screener Google Sheet – Autofills DSCR and 1 % rule—perfect on your phone at live tours.
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Market Heatmap PDF – Shows 2025 cap‑rate ranges for 40+ metros.
Final Word: Speed + Precision Win Deals
You don’t need an MIT model out of the gate; you need speed to lock LOIs and precision to preserve equity. Master the Five‑Minute Deal Filter™, then layer in deep underwriting once a property passes the sniff test.
Remember: The most successful investors aren’t the smartest—they’re the fastest to act on solid intel.
Take the Next Step to Master Quick Underwriting
Ready to underwrite like a pro and scale to 1,000+ doors? Join my Multifamily Bootcamp for hands‑on deal analysis, live market case studies, and the scripts I use to negotiate millions off asking prices.
🎧 Prefer audio? Subscribe to “Lifetime Cash Flow Through Real Estate Investing” and learn on your morning jog.
Take decisive action—your future net worth depends on it!
