What are the main KPI's and metrics you look at when acquiring a multi-residential property?
From an investor standpoint, what are the main KPI's of a multi-residential property that you look at when investing? Where do you usually hold more weight for a decision to be made? I'm curious to see what most investors are looking at (outside the traditional IRR, CoC and MOIC)?
[{"id": "hu2ba4c", "text": "All-in basis, exit value, equity multiple, hold period.", "replies": [], "depth": 1}, {"id": "hu2fx9c", "text": "Irr is pretty much the only one that matters. That and equity multiple. Cash on cash can be important for syndications. Other big one is return on cost since we focus on value end, that tells us if we are actually adding value with the renovations.", "replies": [], "depth": 1}, {"id": "hu3bshk", "text": "Going in basis, cost basis at exit (and yield on basis), margin between exit cap and basis, average cash on cash over hold, return attribution to operating cash flow vs reversion, and then returns. Honestly basis is key, you can\u2019t stop someone else from overpaying but you can stop yourself - there\u2019s no such thing as a bad deal, just overpaying for one.", "replies": [], "depth": 1}]