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Send us Fan Mail My 10-Minute Multifamily Deal Filter (2026 Underwriting Checklist) This episode explains a 10-minute process to quickly decide whether a multifamily deal is worth pursuing in 2026. It starts with three front-end checks: location and submarket supply, current occupancy and collections, and the asking price per unit and going-in cap rate—passing immediately if any are weak. On income, it ignores seller pro forma rents and instead compares in-place rents to recent leases and market rents, reviews near-term lease roll, and applies realistic submarket rent growth assumptions. It then rebuilds expenses and CapEx with today’s costs, including insurance, taxes, payroll, repairs, turnover, year-one CapEx, and ongoing reserves. Finally, it stress-tests debt and returns using current debt costs, DSCR, cash-on-cash, and break-even occupancy, and buckets deals into pursue, negotiate hard, or pass. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail This episode breaks down the 10 biggest red flags to watch for in a multifamily offering memorandum (OM), emphasizing that an OM is a sales document and your job is to find what’s missing, exaggerated, or risky. It covers income-side issues like aggressive rent assumptions, “perfect” trailing 12-month income despite slipping occupancy or collections, and unrealistic rent growth projections in high-supply Sunbelt markets. On the expense side, it flags outdated expense ratios (especially insurance and taxes), missing or understated CapEx, and lack of replacement reserves. It also warns about pro formas based on cheap floating or interest-only debt, unjustified exit cap rates, vague value-add claims without a scoped timeline and budget, and broker language that avoids hard numbers. The speaker uses a printed checklist and recommends major price adjustment when three or more red flags appear. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail When Your Multifamily Exit Fails in 2026: What Happens Next (and How to Protect Yourself) The script explains how multifamily exit strategies underwritten in 2021–2023—refinancing in year three or selling in year five—are failing in 2026 due to higher rates, weaker rent growth, and rising expenses, along with Fed hikes, a maturity wall, and elevated insurance and taxes that undermine refinance proceeds and sale prices. It outlines four common outcomes: forced equity injections to refinance, discounted sales that permanently reduce IRR and equity multiples, lender transfer to special servicing with higher fees and reduced control, and in worst cases handing back the keys (rarer than office but occurring on over-levered deals). Those hit hardest include floating-rate/bridge loans, 2026 maturities, over-budget value-add projects, aggressive rent-growth assumptions in high-supply markets, and partnerships without dry powder. The script advises underwriting failed-exit scenarios, keeping reserves, building multiple exit paths, and not relying on market timing. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail On Multifamily AP360, host Rama welcomes Brian Burke, president and CEO of Praxis Capital and author of The Hands-Off Investor, to discuss why he shifted from multifamily to senior housing after selling most multifamily holdings by early 2022 and beginning acquisitions in early 2025. Burke explains the senior housing thesis: rapid growth in the 80+ population (10,000 turning 80 daily), decade-low construction, and a post-COVID cycle bottom creating low values and rising demand. He outlines why portfolios should diversify across acuity levels, operators, geography, lenders, and acquisition timing, and stresses the operator’s critical role and culture-focused due diligence. He covers underwriting using EBITDA (akin to NOI), sourcing off-market deals, typical facility sizes and occupancies, triple-net considerations in skilled nursing, key risks like another pandemic, and ways LPs can evaluate sponsors and gain exposure, including REITs and funds. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail The Real 2026 Multifamily Killer: Expenses (Insurance, Taxes & Repairs) This episode argues that in 2026 the biggest threat to multifamily deals isn’t rent growth but rapidly rising expenses that crush net operating income. It highlights insurance as the fastest-growing cost, citing Trepp’s estimate that multifamily property insurance is up 58% over five years, with some analyses showing per-unit costs rising from about $100 to over $250 nationally and worse in high-risk coastal and southern markets, where owners can’t fully pass increases to tenants. Property taxes are also climbing 5–10% annually due to lagging assessments, and combined with insurance can erase years of rent gains, pushing some loans into distress as DSCR falls below 1x. Repairs and maintenance are up roughly 30% in five years, with deferred CapEx now becoming urgent, especially for older Class B/C assets, making aggressive expense underwriting essential. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail Why many multifamily owners are struggling to refinance as a major 2026 loan maturity wall collides with higher rates and weaker fundamentals. About $160 billion in multifamily loans mature in 2026, many originated in 2021–2022 at 3%–4.5% with optimistic rent growth assumptions, while the Fed is now at roughly 3.75%–4% and permanent debt is more expensive. Refinancing is being constrained by higher lender requirements for debt yield and DSCR amid slower rent growth, lower appraised values as cap rates expand, and rising operating expenses like insurance and taxes that reduce true cash flow. The most impacted are 2021–2022 floating-rate and bridge loans, deals that never stabilized, high-supply Sunbelt markets, and max-leverage owners, while stabilized Class B assets with fixed-rate agency debt fare better. Likely outcomes include equity injections, discounted sales, or special servicing, creating opportunities for well-capitalized buyers and debt investors. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail This episode explains why many apartment owners are selling ahead of 2026: low-rate loans from 2021–2022 are maturing, refinancing is far more expensive after Fed hikes, and rent growth in many markets hasn’t kept up, leaving property values down from peak levels. As a result, new loans often won’t cover old balances, forcing owners to either inject significant equity or sell. The biggest sellers are owners with 2021–2022 floating-rate/bridge deals, projects that never fully stabilized, properties in high-supply Sunbelt markets, and partnerships running out of capital or patience, while stabilized owners with fixed-rate agency debt in stronger Midwest and gateway markets are less motivated. For buyers, forced sales can be opportunities only with realistic underwriting, since many deals have deferred maintenance, soft rents, or higher expenses than advertised. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail This episode explains why multifamily deals often fail due to bad assumptions, then breaks down five underwriting mistakes to avoid in 2026: assuming aggressive rent growth based on “market rent” instead of achievable rent and submarket comps; ignoring incoming new supply and the 24–36 month delivery pipeline; underwriting expenses too low by relying on seller numbers instead of normalized taxes, insurance, repairs, utilities, payroll, management, and turnover (showing how a $150K NOI miss can erase about $2.5M of value at a 6% cap); using too much leverage and not stress-testing refinancing risk as rates and maturities (13% of balances in 2026) impact DSCR, LTV, valuation, and proceeds; and relying on overly optimistic exit cap rates instead of running best, downside, and stress cases. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail This episode explains why chasing the highest cap rate can lead multifamily investors into bad deals, since a higher cap rate doesn’t automatically mean better value. Using two $10M apartment examples, it shows how a seemingly superior cap rate can be driven by inflated or unrealistic NOI projections, understated expenses, or post-sale increases in taxes and insurance. It also highlights that higher cap rates often signal higher risk—such as weaker locations, higher vacancy, deferred maintenance, and limited rent growth—and clarifies that cap rate is not the same as investor return or IRR. The script outlines a deeper underwriting checklist, stress-testing assumptions like flat rent growth, rising expenses, expanding exit cap rates, and additional CapEx needs, emphasizing risk-adjusted decision-making over headline numbers. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail The script argues that the current multifamily opportunity may be in overlooked Class B apartments because Class A owners face heavy competition from new supply and concessions, while Class B competes on affordability. It cites CBRE data on 2026 completions and slowing deliveries, and the National Apartment Association’s view that stabilized Class B often holds stronger occupancy and steadier rent performance in high-supply markets. The speaker warns that not every Class B deal is good and outlines five key checks before buying: local job growth, upcoming supply, true renter affordability, ongoing CapEx needs in older buildings, and whether the deal works without aggressive rent growth. Value creation is framed as operational—improving collections, turnover, expenses, vacancy, and selective renovations—while cautioning that “cheap” properties can become expensive when CapEx and risk are ignored. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail The speaker explains that before buying an apartment building they start with seven key numbers, not the purchase price, because deal quality depends on the underlying metrics. They verify and normalize NOI from actual collections, vacancies, concessions, expenses, taxes, insurance, repairs, and management fees, noting that small NOI changes can shift value significantly at a given cap rate. They then evaluate the going-in cap rate in market context, DSCR (NOI vs. annual debt service) to ensure the property can withstand changes in rates, occupancy, or expenses, and LTV to avoid over-leverage. They stress-test rent growth assumptions against real market drivers and scenarios, scrutinize the expense ratio for value-add opportunities, and use price per unit plus required CapEx per unit to determine true basis. The core lesson: don’t fall in love with amenities—NOI and conservative underwriting drive returns and protection. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail Dr. Peter Linneman on Multifamily Cycles, Interest Rates, Cap Rates, Leverage, and AI Data Centers On Multifamily AP360, Dr. Peter Linneman—founder of Linneman Associates and Wharton professor emeritus—discusses why real estate should be viewed as an 8–12-year ownership cycle requiring patience, not short-term performance judging. He explains how leverage can boost returns but can also wipe investors out in downturns and argues today’s 10-year Treasury near 5% is abnormal, driven largely by uncertainty and oil rather than broad inflation. Linneman challenges the common belief that interest rates directly drive cap rates, emphasizing instead that cap rates follow the flow of capital and credit availability. He says higher rates hit development first, while best assets hold up better. In multifamily, he attributes recent distress mainly to a COVID-driven supply surge plus tighter capital and warns data centers may eventually be overbuilt despite strong near-term AI demand. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail Fed Hikes Rates to 3.75%–4.00%: What It Means for Multifamily & Commercial Real Estate in 2026 The Fed raised rates 25 basis points for the first time since 2023, setting the range at 3.75% to 4.00%, with Chair Kevin Warsh emphasizing inflation remains elevated and the dot plot signaling at least one more hike before year-end. The episode breaks down immediate impacts on multifamily and commercial real estate: higher costs for floating-rate debt and new loans, increased strain on the $160B multifamily maturity wall in 2026, cap rate expansion pressures that reduce leveraged asset values, and tougher refinancing for deals underwritten on lower rates and strong rent growth—especially Sunbelt value-add and bridge loan deals. Stabilized Midwest and gateway assets with fixed-rate agency debt are positioned better, while cash buyers and rescue capital providers benefit as highly leveraged owners and rate-waiters lose. Viewers are urged to stress test loans, re-underwrite acquisitions, and consider debt and preferred equity strategies. Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]

Send us Fan Mail Support the show Follow Rama on socials! LinkedIn | Meta | Twitter | Instagram|Youtube Connect to Rama Krishna https://calendly.com/rama-krishna/ E-mail: [email protected] Website: www.ushacapital.com To find out more about partnering or investing in a multifamily deal:  email: [email protected]