Hello.
I've been looking at multifamily proformas in Edmonton lately and I noticed many are presented into two formats. One shows the current actual rents with low CAP rates and another shows projected rents and ROI with higher CAP rates say CAP was 4.4 and it becomes 6.5. Some of the projected proformas also show lower expenses on repairs and maintenance.
I didn't contact any of the realtors to inquire why they have 2 proformas but I was wondering what the reason could be as normally there should be only one.
But I'm also pretty sure multifamily investors must know what it means. So by projected rent does it mean when rents eventually say in a few or more years go back up to what they were before the recession or it might be something else?
Thank you.
I've been looking at multifamily proformas in Edmonton lately and I noticed many are presented into two formats. One shows the current actual rents with low CAP rates and another shows projected rents and ROI with higher CAP rates say CAP was 4.4 and it becomes 6.5. Some of the projected proformas also show lower expenses on repairs and maintenance.
I didn't contact any of the realtors to inquire why they have 2 proformas but I was wondering what the reason could be as normally there should be only one.
But I'm also pretty sure multifamily investors must know what it means. So by projected rent does it mean when rents eventually say in a few or more years go back up to what they were before the recession or it might be something else?
Thank you.