MFREE 122 Trailer # 3 with Mike "Big Mike"Zlotnik: How Are Rising Costs Changing Multifamily Underwriting?

Aloha, It’s Shelon "Hutch" Hutchinson here! If you’re enjoying 'The Multifamily Real Estate Experiment' podcast, please like, comment, and share our episodes to help us reach and inspire more people. Thank you for your support!

In this conversation, Mike “Big Mike” Zlotnik walks through how disciplined underwriting has changed in today’s market and why downside protection matters more than ever. Instead of chasing volume, he explains how tighter standards are forcing investors to slow down and get more selective. 🧠📉

Mike breaks down the three core things he looks for when underwriting deals today. A positive spread between cap rates and interest rates, buying well below replacement cost, and securing deep discounts from peak market pricing. He highlights how rising insurance costs, aging properties, and operational complexity have made Class B and C assets harder to manage, requiring far more conservative assumptions.

The bigger takeaway is mindset. This environment rewards patience, realism, and discipline. With fewer clear comps and tighter financing, successful investors focus on cash flow at today’s rates and refuse to force deals. As Mike points out, you don’t need many wins. You just need a few deals that truly make sense. 🏢📊

#InvestorMindset #RiskManagement #MultifamilyEducation #RealEstateLeadership #DisciplinedInvesting

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