underwriting-researchlisted

# Underwriting Research The firm builds its own financial models. This play researches and pressure-tests the **assumptions** that feed the model so they're grounded in market reality and sourced. ## When to use "What rents can we underwrite?", "research property taxes/insurance in [market]," "what are construction costs running?", "are these expense assumptions reasonable?", "any incentives available here?" ## Assumption areas (research + cite each) 1. **Revenue** — achievable market rents by unit type (pull from market-comp-analysis), realistic stabilized occupancy, loss-to-lease/concessions, other income (parking, pet, fees). 2. **Operating expenses** — submarket OpEx benchmarks per unit; payroll, R&M, marketing, management fee, utilities, G&A. 3. **Property taxes** — local rate/assessment methodology; how new construction is assessed; reassessment risk at stabilization. (Often a major swing factor — research carefully.) 4. **Insurance** — current multifamily insurance cost trend in the market (rising fast in many regions; flag it). 5. **Construction / hard costs** — current $/SF or $/unit ranges for the product type and region; cost trend; long-lead items. 6. **Soft costs & timing** — typical soft-cost load, entitlement/permitting timeline, construction duration, lease-up pace. 7. **Capital markets context** — prevailing construction debt terms and market exit cap rates for the product/market (for the yield-on-cost spread). 8. **Incentives** — TIF, PILOT, tax abatement