MFREE 122 Trailer # 4 with Mike "Big Mike"Zlotnik: How Do Smart Investors Adjust to Rising Operating Costs?

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 episode, Mike “Big Mike” Zlotnik breaks down how underwriting standards have tightened and why downside protection matters more than ever in today’s market. Rather than chasing volume or forcing deals, he explains how discipline has become the real advantage. 🧠📉

Big Mike walks through the three things he focuses on when underwriting today. A positive spread between cap rates and interest rates, buying well below replacement cost, and securing deep discounts from peak pricing. He explains how older Class B and C assets require more capital, more management, and far more conservative assumptions due to rising insurance, maintenance, and operational complexity.

The bigger takeaway is leadership through patience. With limited comps and sellers slow to adjust, Mike emphasizes focusing on cash flow at today’s interest rates and refusing to force economics that no longer work. This environment rewards investors who wait for the right opportunities instead of chasing every deal that hits the market. 🏢📊

#InvestorMindset #RiskManagement #MultifamilyEducation #RealEstateLeadership #DisciplinedInvesting

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