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Underwriting
How we evaluate small-to-mid-size multifamily deals: T-12 review, capex reserves, true operating expenses, and the math behind a clean offer.
Articles in Underwriting
9 articles
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Article Underwriting
Cash-on-cash vs cap rate for multifamily investors
Cap rate measures a property's income relative to its price, ignoring financing. Cash-on-cash return measures what your dollars earn after debt service. Use cap rate to compare deals; use cash-on-cash to confirm your financing works.
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Article Underwriting
DSCR loans for buy-and-hold rental property
A DSCR loan qualifies borrowers on the property's rent-to-payment ratio, not personal income. Target 1.20 or higher for safety. Rates run 50-100 basis points above conventional, but the flexibility is worth it for portfolio builders.
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Article Underwriting
Equity waterfall in real estate: how profits split
An equity waterfall in a real estate JV sets who gets paid first: the investor's preferred return comes before any profit split. Kallpa structures direct equity co-ownership deals in Kansas and Washington, not pooled syndications.
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Article Underwriting
Passive real estate equity deal structure explained
In a Kallpa JV, a passive equity partner contributes capital and receives a preferred return plus a negotiated share of cash flow and appreciation at exit. Kallpa operates the property. The split and return rate are set per deal.
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Article Underwriting
How to analyze a multifamily deal in Kansas
Analyzing a Kansas multifamily deal starts with recasting the T-12 to market expenses, not the seller's actuals. We target 7.5-8.5% cap in Wichita B/C class and walk when the gap exceeds 15%.
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Article Underwriting
BRRRR investing partner in Washington state
A Washington state BRRRR equity partnership pairs an active operator with a capital partner. Kallpa sources and runs the deal; the partner contributes capital and earns a preferred return plus a profit split at refinance.
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Article Underwriting
What is a 60/40 equity deal in real estate?
In a 60/40 equity JV deal, a capital partner owns 60% and the operating partner owns 40% of a property. Returns and tax benefits split by that ratio. Kallpa structures these as direct two-party JVs, not pooled syndications.
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Article Underwriting
Sell Your Wichita Duplex to a Cash Buyer: What to Expect
Cash buyers price Wichita duplexes using income, not Zillow estimates. At $1,050 per door per month (illustrative), income-approach value lands near $140,000-$170,000 depending on condition, expenses, and the cap rate applied.
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Article Underwriting
How we underwrite a 5-to-50-unit multifamily deal in 30 minutes
When a seller calls about a property, we can usually tell whether there's a deal in 30 minutes. Address, unit count, current rents. The math is rent roll minus realistic vacancy minus true operating expenses minus capex reserve, divided by a market-appropriate cap rate. Brokers pad each line. We don't.
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