Underwriting (a deal)

The process of analyzing a property's financials to decide whether it's worth buying and at what price.

Investor underwriting (different from lender underwriting): build a model that projects 5-10 years of rent growth, expense inflation, capex, refinance/sale, and computes IRR / equity multiple / cash-on-cash. Inputs always come from primary sources — actual leases (not broker pro forma), actual T-12 expenses, market rent comps from MLS or rentometer, real insurance quotes, real property tax (after reassessment). The output is a price you're willing to pay. If the deal doesn't hit your return hurdle at the asking price, you offer lower or pass.