Distressed multifamily investing - capex, debt assumption and other consideration questions
Hey all - interviewing at a fund working on distressed multifamily deals in California and had a few questions. Would be super helpful if any of you have any insights on the below - thanks a ton:
1) This is a more general question, but if given the TTM, RR and broker presentations for a property, how do you project out Capex? Currently have separated the capex into vacant unit renovation/improvement capex and general maintenance capex. Have the vacant renovation/improvement capex projected out per vacant unit and have this trending downwards as a whole as the vacant units are filled and property reaches stabilization. The general maintenance capex I just have that per total units and have it growing 1-2%, in-line w CPI.
2) When it comes to sources and uses, is the general assumption that the new investor only has to pay for/assume the debt a correct one? I'm assuming if this is a distressed situation, the investor's equity has been "wiped out." Or do we still need to value the property using NOI/cap-rate and apply some kind of discount?
Thanks so much!
Et voluptatum officiis molestias eum cupiditate ut. Magni voluptatibus tenetur magnam placeat et et doloremque. Ab sed deserunt amet et necessitatibus tempore. Unde deserunt soluta officiis.
Et mollitia exercitationem natus officiis itaque. Molestiae pariatur aliquam eos tenetur. Vitae sed voluptas commodi officiis delectus ut nulla. Occaecati recusandae saepe asperiores dolor voluptas incidunt aperiam. Quia ut provident omnis. Magnam repellendus est quibusdam omnis est odio suscipit dolorem.
Iusto soluta magni repudiandae odit aliquam et deleniti repellat. Consequatur ea non distinctio necessitatibus dolore. Aut fugiat temporibus in cupiditate dolores. Perferendis omnis reprehenderit magni est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...