Plain-English explanation
Underwrite every deal at base + downside.
Examples
- Base: 7% vacancy, 3% rent growth. Downside: 12% vacancy, 0% growth.
Common mistakes
- Skipping downside on deals that 'pencil tight.'
Related questions
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Portfolio Building
Downside Case
Scenario modeling pessimistic assumptions for vacancy, expenses, and rent growth.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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