Underwriting

Break-even occupancy is commonly presented as a measure of downside protection. It is typically framed as the level of occupancy required for a property to cover its operating expenses and debt service. From this, a conclusion is often implied: If break-even is low, the investment is safer. This interpretation is incomplete. Break-even occupancy is not a

“Conservative underwriting” is widely used in multifamily investing. It is often defined by adjusting projections: These adjustments are intended to reflect caution. In practice, this definition is limited. Conservatism is often treated as a numerical adjustment rather than a structural decision. Underwriting is not simply a projection of outcomes. It is a reflection of what